Mitie Group

Mitie Group Dividend Analysis and Summary

• Declared dividend: Interim dividend of 1.4p per share (up 8% vs 1.3p last year).
• Ex-dividend date: 08/01/2026.
• Record date: 09/01/2026.
• Payment date: 20/02/2026.
• DRIP election deadline: 26/01/2026.
• Policy: progressive dividend with payout ratio 30–40%; interim set at ~one third of the prior year total dividend (FY25 DPS: 4.3p).
• Indicative yield: c.2.7% based on FY25 DPS of 4.3p and the company’s FY26 buyback average price of ~160p.

• Earnings cover: H1 FY26 basic EPS before Other items was 5.7p; the interim 1.4p is well covered. On a full-year basis, coverage should remain comfortably >2x if H2 trends persist (management reiterates FY26 profit guidance).
• Cash cover: FY26 free cash flow guidance of at least £120m versus an implied annual dividend cash out typically in the ~£55–60m range suggests >2x FCF cover, even after the share issuance for Marlowe.
• Leverage: Average net debt £332m (closing £471m) with post-IFRS 16 leverage at 1.0x (within the 0.75–1.5x target). Debt refinancing to fixed USPP helps visibility on interest outflows; interest cover remains strong.
• Operating performance: H1 revenue +10.4%, operating profit before Other items +7.6%, and free cash flow improved to £52m. Order book at a record £16.5bn and pipeline £33bn support medium-term cash generation.