Public and private sector firms are turning to the outsourcing giant Mitie for all sorts of services, from installing solar panels to cleaning hospitals and painting car park lines.
Such demand helped the FTSE 250 group post record annual revenues and launch a share buyback.
The stock gained 6.6 per cent, or 7.4p, to 119p.
Mitie’s financial year ended on a high as it landed contracts with Eastern Police Forces for custody services alongside security work for Sainsbury’s and Lloyds.
The group gained work from the Government’s Future Defence Infrastructure Services (FDIS) to help military homes for the armed forces and their families become greener.
New contracts: Shares in outsourcing giant Mitie gained 6.6% after the FTSE 250 group posted record annual revenues and launched a share buyback
The firm also bought seven companies, including the contractor JCA Engineering, for £65million.
Mitie expects its revenues, which rose 10 per cent to £1.2billion in the fourth quarter to the end of March, to have increased by around 11 per cent to at least £4.5billion across the entire financial year.
It also reckons profits jumped 23 per cent to £200million – up from its estimate of at least £190million in January – and launched a £50million share buyback.
Mid-cap car dealer Inchcape was also on the rise, revving up 4.1 per cent, or 28.5p, to 727p, as it outlined plans for a share buyback following the sale of its UK retail operations.
The unit, which employs 3,600 people across more than 80 sites, will be sold to the US-based rival group 1 Automotive for £346million.
Inchcape wants to focus on its distribution business, which will make up more than 99 per cent of its global revenues and profits after the sale of its UK retail operations.
Stock Watch – Horizonte Minerals
Shares in a nickel miner backed by Glencore crashed by more than 80 per cent after it failed to secure fresh funds to complete its project in Brazil.
Horizonte Minerals warned that none of the remaining options – such as liquidating the assets of the nickel mine – are likely to ‘recover any value’ for shareholders.
Most who considered providing funds decided not to due to the ‘unfavourable nickel market environment’.
Shares plunged 83.6 per cent, or 1.99p, to 0.39p.
Around £100million of proceeds will be returned to shareholders through a share buyback programme.
But FTSE 250 peer Page Group headed in the other direction as the recruiter cut roles amid a global hiring slowdown.
The firm reduced its fee-earner workforce by 1.7 per cent – equivalent to 100 jobs – in the first quarter of 2024.
Profits, which slumped 19.2 per cent to £27.1million in the UK during the period, fell 12.8 per cent to £219.7million across the group as clients tightened their recruitment budgets and took longer to hire permanent staff.
Shares sank 9.1 per cent, or 44.2p, to 440p. Money manager Ashmore took a tumble as institutional investors reduced their appetite for risk.
Its managed assets fell by £1.7billion to £41.6billion in the third quarter to the end of March. Shares fell 3.3 per cent, or 6.1p, to 181.8p.
On the wider market, the FTSE 100 dropped 0.4 per cent, or 30.05 points, to 7965.53 and the FTSE 250 lost 0.1 per cent, or 22.35 points, to 19698.89.
London’s top index headed back towards 8000 points, after it almost closed at a record high on Friday before, giving up its gains late in the afternoon.
Markets shrugged off tensions in the Middle East after Iran launched drone attacks against Israel over the weekend.
Oil dipped a touch, falling below $90 a barrel.
It sent Shell down 1.6 per cent, or 47.5p, to 2889.5p and BP slipped 2.2 per cent, or 11.8p, to 527.3p.
