Mitie Group PLC — Call Transcript 2026

Okay, good morning, everyone, and welcome to Mitie's interim results presentation for the six months ended 30th of September 2025, H1 FY 2026, as we call it, which, as usual, we are broadcasting live here from The Shard. We're also joined today by Chris Rogers, Mitie's new chairman. Welcome, Chris. As well, welcome, Sam White. Sam White is our long-awaited and much welcome Managing Director of Technical Services Division, who joins us from Costain on the 1st of December. Thank you, Sam, for slipping off quietly here. Now, it's just over two years ago since our capital markets event that we held here, where we launched the MITIEverse, if you remember, and our facilities transformation vision. We've now reached the halfway mark in delivering our FY 2025 to FY 2027, three year, plan. As a reminder, our business model set out to leverage our scale, our technology, and our capabilities to unlock the value of our customers' estates through facilities management, facilities transformation, and with the recent acquisition of Marlowe, facilities compliance. As we say, to become the future of high-performing buildings and places. At this stage, I'm pleased to say that the business is on track and momentum is growing. Encouragingly, we have maintained double-digit revenue growth for the fifth successive six-month period, significantly outpacing the market, and we've shown good margin resilience despite the headwinds from national insurance and wage inflation. We've delivered record contract wins again and renewals and have continued to grow the order book and pipeline again. Free cash flow generation was good, and our leverage at one times EBITDA is modest, hence why we launched in October a new GBP 100 million buyback program over the next 12 months. We are confirming our FY 2026 EBIT guidance of GBP 260 million, with the integration of Marlowe going well. AI, as I will show, is having a wide impact in the business. We are on track not only to deliver our ambitious FY 2027 targets, but also to take us beyond 2027 with our growing momentum. I will discuss all these points shortly after Simon takes you through the H1 2026 numbers. Thanks, Phil. Good morning, everybody. As Phil said, we're now halfway through our three-year plan. Before getting into the detail of the half-one results, I'll give it a little bit more color to the financial progress that we've made so far and the financial model that underpins our strategy. Our model's based on profitable growth and free cash flow generation, enabling us to compound earnings, drive value accretion, and increase shareholder returns. At the capital markets event in 2023, when we launched the MITIEverse, we said revenue would grow in high single digits. At the halfway point of our plan, it's exceeded that target, growing at 12% a year, supported by the increasing pipeline and much larger order book that Phil just referenced. Operating profit's growing a little faster than revenue at 13% a year. It is worth reminding ourselves that back in 2023, consensus profit for FY 2026 was GBP 207 million. Today, we are forecasting GBP 260 million, having made six upgrades since then. Margins have been resilient despite the material external headwinds, and this good growth and increasing profitability has led to significant free cash flow generation, enabling us to return cash to shareholders and to pursue value-accretive M&A. As a result of these actions, our TSR since the capital market event is 68%, well above the FTSE 250 average of 30%, and we are compounding earnings, with EPS growing faster than revenue at 18% a year. With that as the backdrop, I will move on to cover the half-one results, starting with the headlines. Revenues up 10.4% in the half to GBP 2.7 billion, driven by good organic growth of 6.4%. Operating profits grown by 7.6% to GBP 108.8 million. As Phil said, we've maintained margins at just over 4% despite significant profit headwinds. EPS is up 5.6% to 5.7p per share, with profit growth and share buybacks offset by higher net finance costs. We've declared an interim dividend of 1.4p per share, up 7.7% on FY 2025. Finally, we've had a free cash inflow of GBP 51.9 million, with average daily net debt of GBP 332 million. Moving on to cover the performance in more detail and turning firstly to revenue. This slide shows the key drivers of the revenue growth in the first half of the year, with the good momentum from FY 2025 continuing both organically and inorganically. The first block of the chart shows GBP 70 million of growth in core FM from wins and losses and incremental growth on existing contracts, with wins significantly exceeding losses. Organic projects growth of GBP 48 million was driven by good growth in both divisions and includes a GBP 13 million reduction in revenue in Mitie Telecoms, where we've exited unprofitable contracts. Pricing accounts for GBP 77 million of additional revenue, and we've shown separately on this bridge the GBP 41 million headwind from completion of the high-margin one-off surge security work last year. When we combine these four blocks, total organic growth for the half is 6.4%. Finally, acquisitions contributed 4% of growth in the half. This block includes the infill acquisitions we've made in the last 18 months, including Argus Fire and ESM, as well as the Marlowe acquisition, which added GBP 51 million of revenue. Sticking with the group numbers, next I'll cover operating profit. This slide shows the key financial themes for the half on a profit bridge, highlighting the resilience of our business model. Strategic profit growth of GBP 31.3 million more than outweighed GBP 23.6 million of profit headwinds. Our growth strategy is focused on core FM projects and acquisitions, underpinned by margin enhancement initiatives. Core FM and projects grew by GBP 6.4 million in the half, driven by new wins combined with the good projects performance across most sectors. These upsides significantly outweighed lost contracts, as well as one specific contract provision, which reduced profit by GBP 5.4 million. I'll come back to this shortly when I cover technical services. Next, we added GBP 4.7 million of incremental profit from acquisitions, including GBP 3.1 million of profit from Marlowe. We've made good progress with margin enhancement initiatives, delivering GBP 10 million of profit, and we've turned the telecoms business around, making a small profit in half one, which is a GBP 10.2 million year-on-year improvement. In terms of headwinds, the completed surge response work was a GBP 7.8 million profit headwind. We made GBP 6.2 million of investments to drive growth, including an extra GBP 2.8 million of contract mobilizations. The headwind from National Insurance and inflation was GBP 9.6 million, which I'll cover in a bit more detail now. Once again, we were successful in managing inflationary pressures in the period. Our contractual protections and strong customer relationships enabled us to pass on 95% of cost inflation to our customers, resulting in only a GBP 3.4 million reduction in profit. We expect cost inflation and pricing recovery in half two to be broadly consistent with half one, resulting in a net P&L impact for the year of around GBP 8 million. We said in June that we expected our employers' NI bill to go up by around GBP 50 million in FY 2026, and that we'd recover around GBP 35 million of that through contractual protections and commercial negotiations. Recovery in the first half of the year has been slightly better than we expected, leaving a residual cost of only GBP 6.2 million. As a result, we're forecasting a full year net impact of around GBP 13 million, all of which will be offset by MEIs. Moving on then to cover the divisional performance. Over the past two years, we've been simplifying our divisional structure, consolidating four divisions into two. First of all, we broke up central government and defence, moving the more soft services-focused central government business into business services, and the more engineering-focused defence business into technical services. We've also broken up communities, with the majority of it being amalgamated into technical services other than immigration and justice, which now sits comfortably in business services alongside the security business. Turning then to business services in more detail, revenue grew by 15.1% to GBP 1.4 billion, with particularly good performances in security, hygiene, and in Spain. The security business grew by 12.2% in the half, despite the GBP 41 million headwind from completion of the surge work last year. Growth was driven by fire safety and security projects, both organically and inorganically, as well as new wins and pricing. Growth of 13.3% in hygiene was driven by some significant wins in FY 2025 and pricing, and the business in Spain has grown by almost a third as a result of the expansion into security and significant wins in the public sector. Underneath the total revenue line, we call out projects revenue, which has increased by 30.5% to GBP 167 million as a result of the growth in the fire safety and security projects that I just mentioned. Profitability in business services has been resilient, in line with the first half of last year at GBP 85.3 million, but margins have reduced by 90 basis points to 6%. Revenue growth, MEIs, and the contribution from Marlowe have been positive drivers of profit in the half, but they have been offset by the headwinds from cost inflation, national insurance, and the completion of the high-margin surge work. Moving on to technical services, which has grown by 5.4% to GBP 1.3 billion. Engineering, which includes our private sector maintenance contracts and larger engineering projects, grew by 4.8% in the half. New wins, project work, and pricing more than offset the loss of one notable contract and the contracts that we've exited in the telecoms infrastructure business. The defence growth of 5.2% and the HLG&E growth of 7.1% were largely driven by increases in project work. In defence, this included projects for the DIO in Gibraltar and Cyprus, and in HLG&E, the project's growth was largely in the healthcare sector across a number of hospital contracts. These DIO and HLG&E projects, combined with good growth in data centers and power and grid, helped total TS projects to grow by 10.6% to GBP 469 million. This project's growth, combined with MEIs and the turnaround in the telecoms business, drove a 22.9% increase in profit, boosting margins by 60 basis points. However, although margins have improved, they continue to be impacted by the headwinds from inflation and National Insurance, as well as a provision for one loss-making contract. As I said earlier, this contract was a GBP 5.4 million headwind to technical services profit in the half, but it will complete in May 2026. It sits in a structurally low-margin sector, which we're exiting. Without this contract provision, TS profits would have increased by 36%, and margin would have been 40 basis points higher. We expect TS margins to improve significantly in half two as projects revenue and margin enhancement initiatives ramp up. My final P&L slide shows the consolidation of the group numbers, with the business services and technical services profits that I've just talked through, combining with GBP 26.9 million of corporate costs to make up the GBP 108.8 million of group profit and the 4.1% margin. Corporate costs are a little higher in the period as a result of inflation and the National Insurance increase. My last two slides cover cash flow and the balance sheet, and we generated a free cash inflow of GBP 51.9 million in the half, with the key driver being the operating profit of GBP 108.8 million. Other items were a GBP 25.6 million outflow of cash and was largely made up of acquisition-related costs, as well as the costs of delivering our margin enhancement initiatives. Next, we have a cash outflow from working capital of GBP 24.4 million, driven by three key factors. Our seasonal cash outflow in the first half, where we pay suppliers for the high volume of project work that's completed at the end of the previous year, the growth in the projects business, which consumes more working capital than FM, and longer payment terms on a number of new wins, particularly in the retail sector. Offsetting these outflows, we've made further process improvements and rationalized our supply base. CapEx, leases, interest, and tax was a GBP 61.1 million cash outflow, GBP 13.8 million higher than the first half of last year. The increase was driven by GBP 8.7 million of CapEx, largely for new contract mobilizations, and GBP 3.7 million of additional interest as a result of our capital deployment actions. These capital deployment actions account for GBP 305.1 million of cash outflow, including GBP 41 million of dividends and GBP 228 million of cash consideration for Marlowe. Finally, at the bottom of the page, we see the overall increase in net debt of GBP 272.4 million. This increase results in a closing net debt of GBP 471 million and an average daily net debt of GBP 332 million, with the average leverage ratio of one times remaining at the lower end of our targeted range. Debt to days are consistent with FY 2025, and credit to days have improved as we rationalize our supply base and continue to improve our processes. ROIC reduced by 16.3% as a result of the Marlowe acquisition, where we've added GBP 380 million of invested capital, but only two months of operating profit. Finally, net assets increased to GBP 544 million after adding the net profit for the year and the shares issued for Marlowe, offset by dividends, share buybacks, and market purchases for employee share schemes. In summary, we've made a good start to FY 2026. Revenue growth has been better than our high single-digit guidance, and we've maintained our margins despite the investments we've made and the headwinds from inflation, National Insurance, and the completion of the surge work. We made a positive step forward in EPS despite higher interest costs. We generated good free cash flow, and ROIC's fallen below 20%, but only temporarily. As we look ahead to the second half of the year, we expect revenue growth to continue in double digits. Margins will be higher than in half one, and we remain confident of achieving our full year profit target of at least GBP 260 million. Finance costs will be higher as our leverage increases due to the acquisitions and the share buybacks, and EPS will grow despite these higher finance costs and the shares issued to acquire Marlowe. Completing the FY 2026 guidance, we expect free cash flow to be more than GBP 120 million this year, and ROIC will increase back towards our targeted 20%. On that note, I'll hand back to Phil. Thank you, Simon. They seem a decent set of results to me. I think more importantly now is to talk about where we are on our strategic journey since we pivoted our business model from service-led facilities management to project-led facilities transformation, and now to regulation-led facilities compliance. Just as a reminder, our strategic plan was focused on growth, growth over three pillars, and the foundation of our strategy, Pillar One, was centered on growth from the core, key account growth and scope increases, delivering condition-based maintenance, risk-based security, demand-led hygiene for our customers. This is the heartland of facilities management. Pillar Two of our growth strategy was centered on our projects capability and infill acquisitions, transforming the built environment, better workplaces, greater energy efficiency, higher security. This is the heartland of facilities transformation. Our third pillar of growth was M&A, bringing in new capabilities to meet our customers' evolving needs in sustainability, environmental compliance, and fire and security. This was our move into facilities compliance with the acquisition of Marlowe. Taking together, our strategy set out to build an unrivaled set of integrated capabilities to deliver the future of high-performing places. Now, any successful strategy needs to be underpinned by attractive macro trends, and Mitie is, from decarbonization, higher security, repurposing the grid, accelerating data center investments, to increased public sector spending in defense, in justice, in healthcare and immigration. We're fishing where the fish are. Since we launched our new strategy, two further macro trends have emerged. Number nine here, building compliance regulations are raising compliance requirements. Number ten, investments in water infrastructure will top GBP 100 billion over the next five years. These are themes that I will return to shortly. In terms of our performance, as Simon touched on, H1 revenue was good. New wins lapping a strong H1 FY 2025, plus renewals grew to a record GBP 3.8 billion total contract value in the period. More importantly, as a leading indicator of growing momentum, our order book grew 31% year on year to GBP 16.5 billion TCV. Now, we have split the order book by time buckets this time. On the lower left, you can see that revenue expected to be produced from the order book over the next three years has grown by 32% to GBP 8.6 billion of TCF since this time last year. On the right, you'll see how our pipeline has not only grown in size from GBP 17.6 billion TCV two years ago to GBP 33 billion TCV today, but it's also grown in quality. Let me explain that. The pipeline funnels opportunities from prospecting at the very early stages, such as identifying future bids on public sector frameworks, through to a pre-qualification questionnaire, that was a bit of a mouthful, and becoming qualified to bid. Then onto a bid submission itself, with the final stage of BAFO, best and final offer, before a decision is finally made by the client. As you can see, the quality of our pipeline has been growing. At this time, at the moment, we've got over GBP 2 billion of TCV sitting in BAFO. This is another leading indicator of our growing momentum, particularly given our improving bid win rates. This growing momentum anchored in the four strategic imperatives shown here gives us confidence that our business model will not only deliver our FY 2025 to FY 2027 ambitions, but will also sustain growth beyond this current three-year plan. Sustaining growth, firstly, by capturing more of our clients' facilities management share of wallet, by upgrading, cross-training our strategic client directors, SCDs. We've identified over GBP 1 billion of additional client spend that we could deliver. Secondly, sustaining growth by turbocharging projects, building a GBP 2 billion-plus division over the next few years. Sustaining growth, thirdly, in compliance and water. Following the Marlowe acquisition, we now have a GBP 550 million fire and security environmental services compliance business, and we aim to grow this to GBP 1 billion in the coming years. As our AI strategy drives efficiencies and costs out, we see margins expanding beyond FY 2027. Now, a little bit of detail on each of these imperatives, starting with SCDs, strategic client directors, and client share of wallet. By deepening our relationships within our strategic accounts, we know we can deliver more value to our clients. Integrated facilities management, IFM, is only currently delivered to 40% of our top 50 contracts. In just 10 contracts where we've completed a share of wallet deep dive with Kevin, our sales director, we've identified a further GBP 500 million of work in security and hygiene, engineering and projects, and in compliance, currently delivered to our clients by third parties. Winning here requires more senior business builders with new propositions, a wider understanding of Mitie's capabilities, and how AI and data can drive insights and upsells with stretch incentivisation. Our best SCD of our largest strategic client is now leading this new team. We know how to do it when done well. Take two examples here on the right. One is a retailer has gone from annual revenues of GBP 16 million at the start to an estimated GBP 55 million this year. We've added more facilities management services, increased projects. Roof-mounted solar panels, for example, is a big push for this client. That's before we talked to them about refrigeration services, where we announced an infill acquisition today, or about FGAS compliance and water services from Marlowe. The second is a transport customer with annual revenues of GBP 25 million in FY 2014. Today, that number is GBP 119 million. We have added more sites and more services. Turning to the blue triangle in the upper right there, we always expected growth from the core of facilities management to be the biggest contributor of our three-year plan. Growth from the core, for me, is probably the most important thing that we think about day to day. We have outperformed our own expectations here and have already delivered over 90% of our GBP 600 million incremental growth target at the halfway stage of our strategy. Our block two growth imperative is turbocharging projects in facilities transformation. By any measure here, our performance has been outstanding, with strong growth from the capabilities we have added in fire and security, power and grid, and building engineering. An order book of GBP 2.9 billion today, up 53% year on year. A pipeline of GBP 6.9 billion, up 130% year on year. An average project size is now at GBP 270,000 per job, up 80% year on year. Turning again to the maroon triangle, this time on the upper right, we have outperformed our own expectations here and have just about delivered all of the GBP 200 million incremental growth that we set for FY 2027 at the halfway stage in our strategy. Our final growth imperative is in the GBP 7.6 billion facilities compliance market, where the acquisition of Marlowe positions us as the market leader, providing us with a platform to accelerate growth. Adding Marlowe's capabilities to Mitie's existing fire and security business created a differentiated total fire offer, with a full suite of active fire and passive fire solutions, as well as creating the market-leading provider in security systems. What really excites us about Marlowe on the right-hand side is their capabilities to build a total managed water solution. As some of you will have already heard me say, water is the new energy. We buy it, we meter it, we recycle it, and we report the usage of it. We have already signed up two existing Mitie clients to take these new water services literally in the last couple of months. The really big prize for me is AMP8, Asset Management Period 8, the latest set of regulations from Ofwat that will see GBP 104 billion invested in water efficiency, resilience, and sustainability between 2025 and 2030. This is a material opportunity for Marlowe Environmental to deliver end-to-end solutions across the water services value chain, from sourcing and metering through to transport, wastewater management, and compliance, and delivered at national scale. Simply put, our aim is to be the provider of choice for our clients as they navigate increasingly complex regulatory requirements and sustainability goals built around water. Take the public sector, for example. Previously, Marlowe did not have pre-qual approval in public sector bids. Mitie is a Cabinet Office-approved strategic supplier, and we are already now pre-cleared to participate in some material upcoming public sector bids. On the right upper triangle again, we set a target there of GBP 400 million of revenue from M&A step-out, the step-out being facilities compliance. It is early days after less than two months of owning the Marlowe business, but revenues will now grow rapidly as Marlowe scales up to approach the GBP 400 million target. Now, whilst we are on the subject of Marlowe, it would be remiss of me not to take a moment to update you on our progress with the acquisition and the integration. The business is trading in line with our expectations, and the synergy workstreams are moving ahead. We're on track to deliver at least GBP 15 million of cost synergies in FY 2027, and we'll exit FY 2027 having fully integrated Marlowe and having captured the full GBP 30 million of synergies to be delivered in FY 2028. We're removing duplicate corporate, administrative, and other support functions through automation. We've reviewed procurement opportunities and are moving the Marlowe supply chain to Mitie's preferred supply list. Three sites in Marlowe's property portfolio have already been closed. We're exploring major efficiencies from automating field force scheduling and delivering route density savings. We've already migrated 1,500 of Marlowe's environmental services colleagues onto Mitie's HR platforms, putting in controls around pay rises and bonuses with the remaining fire and security colleagues to follow before the fiscal year end. We're migrating Marlowe's IT applications onto Mitie's Azure platform to raise cyber resiliency. In short, we're making good progress. Of course, in FY 2027 and beyond, Marlowe will be a positive to the group's total overall margin. A final contributor to our 5% margin target, and the last of our four imperatives, is the execution of our AI strategy, reimagining and automating workforce and workflow management to drive better service efficiencies, reduce back-office costs across the business, and drive margin accretion. I have tried to capture our thinking in the next two slides, going back to the MITIEverse at the center there and the Mitie Command Centre, which we introduced at our capital markets event in October 2023. We have not forgotten about it, creating the single pane of glass of the built environment. Our AI strategy has four components. Upper left, all our core systems, which are already cloud-based, have been AI-enabled, or in the case of Workplace Plus and SAP, will shortly be AI-enabled. Lower left, all of our major customer apps, Merlin for risk and for cleaning, Aria, Esme, and Net Zero, are all interconnected via our HARK connected workplace to the IoT platform and are producing real-time data. In the upper right, the output from our core systems and apps feeds our leading enterprise insight platform, Mosaic 360, developed on Microsoft Fabric and integrating all the operational data across all our intelligence solutions. Mosaic 360 provides comprehensive operational and strategic insights into the daily operations of the built environment of our clients. Finally, bottom right, as it were, our task mining from ScanAI has led to a growing number of AI bots or agents, enabling smarter, faster, more consistent ways of delivering tasks. The real game changer, since we launched our three-year plan, is the power of Agentic AI and Agentic Mesh, using the Microsoft Copilot Studio platform to connect and orchestrate our AI agents to deliver a single pane of glass in the MITIEverse Command Centre. In technical services, we're orchestrating those AI agents which deal with our clients, those that execute work orders, those that interact with the supply chain, develop lifecycle upgrades, close out jobs in the cafe. When completed, this agentic mesh will provide that single pane of glass for workflow management. In the MITIEverse Command Centre in business services, a single pane of glass for workforce management will mesh all our recruiting, vetting, onboarding, training, deploying, payroll AI agents, with outputs from the supervisor layer highlighting productivity anomalies, best-in-class performance. The final output from the MITIEverse Command Centre will be a large language model answering questions such as, how does my building running costs compare to others? Or what's the optimum way of reducing costs by 10%? These are the questions that today, although we have much of the data, we simply did not have the processing power to answer. With the MITIEverse digital twin of the built environment, we will be able to provide better service, greater insights to our clients, and also at a lower cost. My expectation is that we will have completed our agentic mesh by summer 2026. If you need a bit of a lie down after that, let me wrap up. We have had a strong first half in FY 2026 with double-digit revenue growth and good profit growth. Contract wins and renewals are at record levels, as is our order book and bidding pipeline. Cash generation is good, and it shows we can undertake value-creating acquisitions and deliver shareholder value from buybacks. It's not either/or at Mitie. FY 2026, profit will be at least GBP 260 million, and the Marlowe acquisition is progressing well. AI efficiencies will underpin our 5% margin aspiration. With 18 months to go, we're on track to not only deliver our stretching FY 2027 targets, but with our growing momentum, we're confident our strategy will carry us into FY 2028. With that, let me now turn over to Q&A. Thank you. We need some mics. We've got DeMola. We've got Miri. Alex. Morning, guys. Alex Smith from Berenberg. Just two quick questions for me. First one on the projects division, the turbocharging. I guess the sizes of the projects have grown. Can you highlight any key areas of focus? And are you happy with the risk profile of those projects? Number two, sorry, it's just on the growth in the pipeline. Immigration and justice seems to keep growing there. I guess kind of prison renewals and your entrance into that division, if you could provide some color on that, that'd be great. What I'll do is ask Mark Caskey, who runs our projects business. I think this year we should end close to GBP 1.5 billion. We've set a target of two over the next couple of years. That's ahead of where we indicated before. Mark, why don't you just give a bit of color? We had a board meeting here earlier in the week signing off some quite big projects in big opportunities in projects. Why don't you talk a little bit about that? Sure. Happy to, Phil. Thank you. Where do we see the biggest opportunities going? If you go back to the slide, Phil talked about a pipeline greater than GBP 7 billion, which is more than double up from where we were this time last year. The growth is really coming from three areas. Firstly, being data centers. Secondly, being in the power and grid space. You think of everything around buildings need connections to the power systems. You have battery storage and renewable projects that are underway. Lastly, there is a significant amount of momentum in the marketplace at the moment around retrofitting the built environment. If you think about our, a lot of our project work sits on top of our FM clients, and we dedicate project managers to those FM clients. That is where we are seeing the natural uptake. The risk profile, we are, I mean, very rigorous around from a contracting perspective. We've invested in our commercial function as well. So we're really sort of like on the ball when it comes to margin profiles. A lot of our projects are short cycles. Even if we are doing larger projects, they're often broken down into numerous phases. We can control the price risk, the delivery risk, and the scheduling to manage against ultimately our client expectations. Just one, thanks, Mark. Just one brief build on that, picking up on Mark's point about the short project life cycles. Phil picked it up on his slide, but you'll see on the turbocharging project slide that the average size of our projects is GBP 270,000. From a risk perspective, the majority of them are relatively small. They turn over relatively quickly. Importantly, 80% of them are with our existing customers. We know the customers. We've got a good relationship. We can therefore negotiate decent commercial terms. We know the estates that we're working on. On the prison and immigration, I thought I might bring Jason in. Stand up, Jason. If you look at the camera that way, because Mark, you were sort of off, you were off screen there. Next time, if I ask you back again, come to the front here. Jason runs our business services division, as you know, our largest. As Simon said, we've moved the immigration and justice because there's a security element of immigration and justice, absolutely, in our case. We're already the largest provider of security services in the U.K. We're building a strong position in both immigration and in justice. Yes, thanks, Phil. Look, the increased pipeline has been driven by, first of all, the announcements of the significant investments being made into the prison infrastructure, driven by the aging infrastructure currently in place and new prison places required. I think we have acquired leading capabilities in Mitie over the last two, three years, and that's resulted in us being successful with Millsike, the U.K.'s first all-electric prison, where we successfully mobilize that prison and are in the process of ramping up to full capacity. I was there yesterday and incredibly impressed by the standards that the Mitie people are delivering. It puts us in a good position, gives us a good foundation for future growth as more new prisons are getting built and more prison places are coming available. From an immigration point of view, we've all seen the increase in immigration centers. We currently mobilize in our latest immigration centre at Campsfield, and there are more new immigration centres being opened. The third point is around the investments being made in the prison and probation estate, which is a significantly aging infrastructure and is a current live contract in flight to upgrade all of those services. Three real key areas of interest for us with good capability and good opportunity for growth. I mean, just to take a little bit more on that, as you saw on slide 17, I mean, the pipeline, as you touched on, I've got where the question came from now, from Alex, GBP 8 billion. I think it's fair to say we've got a couple of quite big ones in the BAFO stage at the moment. We will not say any more at this point. We do not want to jinx it. There are some big jobs coming down the track. We should also say that whilst there is some concentration in immigration and justice and defence, actually, that growth in the pipeline that we've seen come through is spread across a number of sectors. Yes, immigration and defence, but also healthcare, transport, and aviation. We've also seen some fairly chunky increases. Sam. Hi, guys. Sandra from Stifel. Two questions from me, please. Firstly, on the strategic client directors, can you just remind us how they're incentivized and how you're sort of educating them about the Marlowe proposition? Secondly, on facilities compliance, having covered Marlowe, AMP8 and the water opportunity there is not something they particularly touched on. I'd be interested to sort of get a sense of the opportunity you see now they're part of the bigger group and sort of what is going to be the typical AMP8 contracts you're sort of going to look to win. Thank you. Yeah. I mean, Mark, I might get you back to the front here with a mic if you come to the front whilst I set you up on the SCDs. I'll answer the facilities compliance point first because the SCDs, we used to call them SAM, Sam, strategic account management, but we want them to be much more strategic in business building. I think it's fair to say we've had people who are good operationally, but not necessarily people who are good on the client, really understanding the client's breadth of the share of wallet. That is where Kevin Tyrrell, our Sales Director, has been working hard on growing that out. In terms of incentives, I mean, we've talked about some of the people we've got, and then we know how they're incentivized. It's going to be on the growth of the business of the client and specific to their account in terms of profit, revenue, net promoter score, and employee engagement. I'll just say a little bit more about that. I'm happy to. If you think in terms of our SCDs, we've identified our top 50 accounts. Part of their role and what we're supporting them with is bringing the best of everything of Mitie to the benefit of those clients, whether it's in hard services and engineering or soft services and/or projects. What we've recognized as well is we're investing in our sales community or business development community to give them, let's say, the access to the resources to help them support our clients in terms of some of those conversations. Another area we're investing is our consulting capability. Again, whether it's workplace, facilities management, energy, and sustainability consultants, we've got over 300 of them in the business, and we're allocating them to the SCDs to be able to have a different order of conversation with our clients to really bring the full value of Mitie to solving their business challenges and improving the value they get from their property portfolio. As Phil said, on the incentives, we reward them for growth. We reward them for the full P&L stack that sits underneath their client responsibility. On the pipeline, I could show you that, Sam, but you won't be able to see it. This is our top 30 opportunities from the Marlowe opportunity. The first one, I'm not going to tell you who it is, is GBP 47 million, the largest. The point I would make as well is that we have not yet scrubbed the pipeline and the order book for Marlowe. There is nothing in there at the moment in the numbers. We'd expect to have done so when we've got it all in the CRM system, Kevin, and we've actually qualified these opportunities. I deliberately said, the point I made that Marlowe were not public sector bidders. They ended up doing some work in hospitals, but that's because CBRE gave them the job and it was public sector, but they hadn't contracted directly with public sector. We opened up that completely now, and there's some big bids already in play where we've made bids. We're waiting for answers. We'd hope to announce those quite soon. The opportunity is probably bigger than I expected. Once we've scrubbed it, and actually, this is where we need to pivot Marlowe away from, I've euphemistically used this phrase before, fire extinguishers in scout huts, and get into proper B2B. That's where the prize is. That's why we bought the business. We're quite excited about what it could look like. Tom, yeah. That was it, Tom? Yeah. Yeah. I've got yours. Better than mine. Morning, chaps. Tom Callan from Investec. I've also got two. Just one on that GBP 2 billion pipeline that's BAFO. Can you just remind us in terms of the typical conversion of pipeline to order book and also typical contract length? Just trying to get a sense as what might be the best. Yeah. I might bring you in on that as well. The back there. I know you like hiding at the back. But our win rate on there's two types of wins. There's wins around there's retention, and we give you that number, and it's running at 80%. It's quite volatile in terms of if you lost a big contract in a short period of time. Then we've got wins on cold calls and wins on projects as well and the rates of those. Kevin's been our sales director now for about 18 months, and we've got a lot more analysis now. Is it 18 months or 12 months? I can't remember. 18 months. 18 months. Yeah. So conversion rate, we look at two different numbers. One of them is conversion rate of pipeline. The other one is conversion rate of tender win rate. Our tender win rate is things which come to market, we're actively bidding on, and our win rates have gone up into the low to mid-60% in the past 12 months. Our pipeline conversion rate is sitting about 27%. It depends whether that pipeline converts into a tender, we bid on the tender, win rates are going up in that area. I think it's a double-edged sword for us because we try and take all our private sector clients away from a tender process in what we would call an off-market deal. That's exactly what our clients do to us. I mean, we went for BT, but it stayed with the incumbent. The number of in tech services, a number of clients that were in the pipeline never came to market because they rolled it with the incumbent. It is why, but in public sector, you cannot do that. You cannot just do a quiet deal. It is why there is more volatility in public sector because that is a straight shootout on a tender process. That is why not all of that pipeline ever comes to us. That is why there is a predominance in the pipeline of government because we know that is definitely going to come out. We might hope NatWest comes out next year, which we do, but we do not know if it will ever see the light of day. Okay, there is another one. James. How are you sleeping, James? Did not your wife have another baby? Still on the first one. All right. But not sleeping. Thanks. James Beard at Deutsche Numis. Yeah, I've got three questions, please. Firstly, going back to the projects business and the projected growth to GBP 2 billion revenues there. How much of that is driven by expected growth in average ticket value versus just growth in the number of tickets that you're generating in that business going forward? Second question is on Marlowe. Can you just talk through what is happening with the existing customer base there, whether you are retaining or seeing any sort of degree of retrenchment within that existing customer base? Thirdly, on the telecoms business, noted the GBP 10 million profit swing in the first half, what is your expectation on the second half for that? Okay. I'm just in the midst of speeding it up because otherwise we'll be here for a while. I mean, projects, it's a bit of both. We sell more jobs, but there's some very big jobs out there. If you looked at Longcross, it was a GBP 90 million job at the data center, and that was for only a third of the full potential there. You get a sense of the size of the scale. Longcross, when fully built out, is 90 megs. What's Harlowe? That's a lot bigger. It's 37 megs, but because they're densifying significantly, the amount of MEP you're putting into a data center now is increasing the average project size. There's some big stuff there, and you can think about the battery energy storage deal that we announced, Staythorpe. That's GBP 70 million. There's a big pipeline in battery energy storage as well. What was the statistic? Our company that we bought, ironically, out of administration, G2E, has done what, 25% of the UK's battery? The battery storage capability in the U.K. is about 4.5 GW at the moment. G2 Energy, which is the company that we acquired just over two years ago, have developed over 25% of that capacity in the U.K. They are a really powerful brand when it comes to investors and developers into energy storage and battery storage solutions. Marlowe, look, it happens every time. Every time we buy a business, if they do any work with a couple of our sworn enemies, they cancel it straight away. Marlowe had a bit of that, but it is not material. For every bit of business that a competitor has taken away from us, we have work that we were doing with third parties that we can now give Marlowe. You're not going to see, it's not going to, you're not going to see a big change in that number for now. On Telco, you're going, Yeah, just briefly on Telco. You recall that we already initiated our turnaround plan on Telco, which was starting to have a positive effect in the second half of last year. Therefore, we won't see a big delta half on half this year versus last year in the second half. It's growth that we needed. One of the reasons why we pulled back, we shed work that we were losing money on, essentially. What we've got to do is try and rebuild from a profitable level. We've taken the revenue down by 40%. Chris. Good morning. Chris Bamberry, Peel Hunt. A couple of questions. You've also had a very successful period in terms of contract awards. How much would you put down that to what you've been doing over the past few years? Perhaps what's been changing in terms of customer behavior? On slide 20, identified GBP 0.5 billion of opportunities with 10 contracts. Just trying to get an idea of the kind of scale of uplift there. I mean, what was the revenues on those contracts? Do you have that, Kev, on the 10? I don't know if I have that. We may have to come back to you if we haven't got it. The 10, we don't have the revenue. Not the top. Not the top of my head. We'll come back to you on that. It's a fair question. As a percentage of uplift. Just, I mean, the quick way of doing it a different way is our top 25 clients generate 25% of our revenue, and our top 50 generate 50. Is that right? It's a bit more than that, actually. Yeah. Top 25 are closer to 40, actually. And the top 50 are just over 50. It's quite a concentration in that top 25. Given that we're taking the 10 largest there, we'll flesh it out. Yeah, we'll flesh that one out. I forgot the second question. What was it? What was the second question? What was the other question, Chris? Yeah. You seem successful within contracts. How much did you put down for that? The question was around winning contracts. It's quite volatile. I mean, it surprises me in some ways that it keeps going up because it is dependent on the size of some of the deals that are out there, and it drives a weighted average. A government contract, I can think of two government contracts that are GBP 2 billion together, okay, that were at BAFO. That can be volatile. Because it's the public sector win rate, Kevin, it'll probably be a little bit lower than that number you gave. It is on your business. I mean, I can just. I guess there's a couple of things for me. I think building capability over the past few years, and we've seen all the capability we've built in our core FM service offering around hygiene, security, and engineering. We continue to build. Continue to build capability around our project capability as well. Strengthening of relationships on the back of really strong MPS. Strong MPS is the foundation for retention, which gives us the ability to continue to grow. I think you apply good MPS, improving relationships with our clients, which we'll continue to do through the SCD program, and building internal capability, the things which are enabling us to win. That was a much better answer than mine, actually. Because it actually reminds me because we've never had a group head of sales. Now, you may say that's rather shameful and our fault, but we used to leave each business unit running its own stuff, doing its own stuff. In the end, we decided that wasn't a good idea. Eighteen months ago, we brought them all under Kevin. You've replaced quite a few people now. We do it to a standard way of bidding, standard reviews, all of the data's in this CRM system. We've just become a lot more methodical than we used to be. The value of that hasn't finished playing out yet. We've still got people literally just having joined us less than six months ago who were with a top track record. One thing I'd say, we've not had any difficulty attracting talent into Mitie. Any more? Excellent. Thank you for your support, as always. We'll see you at the drinks in, not, when is it? The 20. Next week. 20 something next week. If you're not invited, go and see Kate. Thanks, everyone.

Speaker 7: Okay, good morning, everyone, and welcome to Mitie's interim results presentation for the six months ended 30th of September 2025, H1 FY 2026, as we call it, which, as usual, we are broadcasting live here from The Shard. We're also joined today by Chris Rogers, Mitie's new chairman. Welcome, Chris. As well, welcome, Sam White. Sam White is our long-awaited and much welcome Managing Director of Technical Services Division, who joins us from Costain on the 1st of December. Thank you, Sam, for slipping off quietly here. Now, it's just over two years ago since our capital markets event that we held here, where we launched the MITIEverse, if you remember, and our facilities transformation vision. We've now reached the halfway mark in delivering our FY 2025 to FY 2027, three year, plan. Okay, good morning, everyone, and welcome to Mitie's interim results presentation for the six months ended 30th of September 2025, H1 FY 2026, as we call it, which, as usual, we are broadcasting live here from The Shard. okay good morning everyone and welcome to mitie's interim results presentation for the six months ended 30th of september 2025 h1 fy 2026 as we call it which as usual we are broadcasting live here from the shard We're also joined today by Chris Rogers, Mitie's new chairman. we're also joined today by chris rogers mitie's new chairman Welcome, Chris. welcome chris As well, welcome, Sam White. as well welcome sam white Sam White is our long-awaited and much welcome Managing Director of Technical Services Division, who joins us from Costain on the 1st of December. sam white is our long-awaited and much welcome managing director of technical services division who joins us from costain on the 1st of december Thank you, Sam, for slipping off quietly here. thank you sam for slipping off quietly here Now, it's just over two years ago since our capital markets event that we held here, where we launched the MITIEverse, if you remember, and our facilities transformation vision. now it's just over two years ago since our capital markets event that we held here where we launched the mitieverse if you remember and our facilities transformation vision We've now reached the halfway mark in delivering our FY 2025 to FY 2027, three year, plan. we've now reached the halfway mark in delivering our fy 2025 to fy 2027 three year plan As a reminder, our business model set out to leverage our scale, our technology, and our capabilities to unlock the value of our customers' estates through facilities management, facilities transformation, and with the recent acquisition of Marlowe, facilities compliance. As we say, to become the future of high-performing buildings and places. At this stage, I'm pleased to say that the business is on track and momentum is growing. Encouragingly, we have maintained double-digit revenue growth for the fifth successive six-month period, significantly outpacing the market, and we've shown good margin resilience despite the headwinds from national insurance and wage inflation. We've delivered record contract wins again and renewals and have continued to grow the order book and pipeline again. As a reminder, our business model set out to leverage our scale, our technology, and our capabilities to unlock the value of our customers' estates through facilities management, facilities transformation, and with the recent acquisition of Marlowe, facilities compliance. as a reminder our business model set out to leverage our scale our technology and our capabilities to unlock the value of our customers' estates through facilities management facilities transformation and with the recent acquisition of marlowe facilities compliance As we say, to become the future of high-performing buildings and places. as we say to become the future of high-performing buildings and places At this stage, I'm pleased to say that the business is on track and momentum is growing. at this stage i'm pleased to say that the business is on track and momentum is growing Encouragingly, we have maintained double-digit revenue growth for the fifth successive six-month period, significantly outpacing the market, and we've shown good margin resilience despite the headwinds from national insurance and wage inflation. encouragingly we have maintained double-digit revenue growth for the fifth successive six-month period significantly outpacing the market and we've shown good margin resilience despite the headwinds from national insurance and wage inflation We've delivered record contract wins again and renewals and have continued to grow the order book and pipeline again. we've delivered record contract wins again and renewals and have continued to grow the order book and pipeline again Free cash flow generation was good, and our leverage at one times EBITDA is modest, hence why we launched in October a new GBP 100 million buyback program over the next 12 months. We are confirming our FY 2026 EBIT guidance of GBP 260 million, with the integration of Marlowe going well. AI, as I will show, is having a wide impact in the business. We are on track not only to deliver our ambitious FY 2027 targets, but also to take us beyond 2027 with our growing momentum. I will discuss all these points shortly after Simon takes you through the H1 2026 numbers. Free cash flow generation was good, and our leverage at one times EBITDA is modest, hence why we launched in October a new GBP 100 million buyback program over the next 12 months. We are confirming our FY 2026 EBIT guidance of GBP 260 million, with the integration of Marlowe going well. free cash flow generation was good and our leverage at one times ebitda is modest hence why we launched in october a new gbp 100 million buyback program over the next 12 months. we are confirming our fy 2026 ebit guidance of gbp 260 million with the integration of marlowe going well AI, as I will show, is having a wide impact in the business. ai as i will show is having a wide impact in the business We are on track not only to deliver our ambitious FY 2027 targets, but also to take us beyond 2027 with our growing momentum. we are on track not only to deliver our ambitious fy 2027 targets but also to take us beyond 2027 with our growing momentum I will discuss all these points shortly after Simon takes you through the H1 2026 numbers. i will discuss all these points shortly after simon takes you through the h1 2026 numbers

Speaker 2: Thanks, Phil. Good morning, everybody. As Phil said, we're now halfway through our three-year plan. Before getting into the detail of the half-one results, I'll give it a little bit more color to the financial progress that we've made so far and the financial model that underpins our strategy. Our model's based on profitable growth and free cash flow generation, enabling us to compound earnings, drive value accretion, and increase shareholder returns. At the capital markets event in 2023, when we launched the MITIEverse, we said revenue would grow in high single digits. At the halfway point of our plan, it's exceeded that target, growing at 12% a year, supported by the increasing pipeline and much larger order book that Phil just referenced. Operating profit's growing a little faster than revenue at 13% a year. Thanks, Phil. thanks phil Good morning, everybody. good morning everybody As Phil said, we're now halfway through our three-year plan. as phil said we're now halfway through our three-year plan Before getting into the detail of the half-one results, I'll give it a little bit more color to the financial progress that we've made so far and the financial model that underpins our strategy. before getting into the detail of the half-one results i'll give it a little bit more color to the financial progress that we've made so far and the financial model that underpins our strategy Our model's based on profitable growth and free cash flow generation, enabling us to compound earnings, drive value accretion, and increase shareholder returns. our model's based on profitable growth and free cash flow generation enabling us to compound earnings drive value accretion and increase shareholder returns At the capital markets event in 2023, when we launched the MITIEverse, we said revenue would grow in high single digits. at the capital markets event in 2023 when we launched the mitieverse we said revenue would grow in high single digits At the halfway point of our plan, it's exceeded that target, growing at 12% a year, supported by the increasing pipeline and much larger order book that Phil just referenced. at the halfway point of our plan it's exceeded that target growing at 12% a year supported by the increasing pipeline and much larger order book that phil just referenced Operating profit's growing a little faster than revenue at 13% a year. operating profit's growing a little faster than revenue at 13% a year It is worth reminding ourselves that back in 2023, consensus profit for FY 2026 was GBP 207 million. Today, we are forecasting GBP 260 million, having made six upgrades since then. Margins have been resilient despite the material external headwinds, and this good growth and increasing profitability has led to significant free cash flow generation, enabling us to return cash to shareholders and to pursue value-accretive M&A. As a result of these actions, our TSR since the capital market event is 68%, well above the FTSE 250 average of 30%, and we are compounding earnings, with EPS growing faster than revenue at 18% a year. With that as the backdrop, I will move on to cover the half-one results, starting with the headlines. Revenues up 10.4% in the half to GBP 2.7 billion, driven by good organic growth of 6.4%. Operating profits grown by 7.6% to GBP 108.8 million. It is worth reminding ourselves that back in 2023, consensus profit for FY 2026 was GBP 207 million. it is worth reminding ourselves that back in 2023 consensus profit for fy 2026 was gbp 207 million Today, we are forecasting GBP 260 million, having made six upgrades since then. today, we are forecasting gbp 260 million having made six upgrades since then Margins have been resilient despite the material external headwinds, and this good growth and increasing profitability has led to significant free cash flow generation, enabling us to return cash to shareholders and to pursue value-accretive M&A. margins have been resilient despite the material external headwinds and this good growth and increasing profitability has led to significant free cash flow generation enabling us to return cash to shareholders and to pursue value-accretive m&a As a result of these actions, our TSR since the capital market event is 68%, well above the FTSE 250 average of 30%, and we are compounding earnings, with EPS growing faster than revenue at 18% a year. as a result of these actions our tsr since the capital market event is 68% well above the ftse 250 average of 30% and we are compounding earnings with eps growing faster than revenue at 18% a year With that as the backdrop, I will move on to cover the half-one results, starting with the headlines. with that as the backdrop, i will move on to cover the half-one results starting with the headlines Revenues up 10.4% in the half to GBP 2.7 billion, driven by good organic growth of 6.4%. revenues up 10.4% in the half to gbp 2.7 billion driven by good organic growth of 6.4% Operating profits grown by 7.6% to GBP 108.8 million. operating profits grown by 7.6% to gbp 108.8 million As Phil said, we've maintained margins at just over 4% despite significant profit headwinds. EPS is up 5.6% to 5.7p per share, with profit growth and share buybacks offset by higher net finance costs. We've declared an interim dividend of 1.4p per share, up 7.7% on FY 2025. Finally, we've had a free cash inflow of GBP 51.9 million, with average daily net debt of GBP 332 million. Moving on to cover the performance in more detail and turning firstly to revenue. This slide shows the key drivers of the revenue growth in the first half of the year, with the good momentum from FY 2025 continuing both organically and inorganically. The first block of the chart shows GBP 70 million of growth in core FM from wins and losses and incremental growth on existing contracts, with wins significantly exceeding losses. As Phil said, we've maintained margins at just over 4% despite significant profit headwinds. as phil said we've maintained margins at just over 4% despite significant profit headwinds EPS is up 5.6% to 5.7p per share, with profit growth and share buybacks offset by higher net finance costs. eps is up 5.6% to 5.7p per share with profit growth and share buybacks offset by higher net finance costs We've declared an interim dividend of 1.4p per share, up 7.7% on FY 2025. we've declared an interim dividend of 1.4p per share up 7.7% on fy 2025 Finally, we've had a free cash inflow of GBP 51.9 million, with average daily net debt of GBP 332 million. finally we've had a free cash inflow of gbp 51.9 million with average daily net debt of gbp 332 million Moving on to cover the performance in more detail and turning firstly to revenue. moving on to cover the performance in more detail and turning firstly to revenue This slide shows the key drivers of the revenue growth in the first half of the year, with the good momentum from FY 2025 continuing both organically and inorganically. this slide shows the key drivers of the revenue growth in the first half of the year with the good momentum from fy 2025 continuing both organically and inorganically The first block of the chart shows GBP 70 million of growth in core FM from wins and losses and incremental growth on existing contracts, with wins significantly exceeding losses. the first block of the chart shows gbp 70 million of growth in core fm from wins and losses and incremental growth on existing contracts with wins significantly exceeding losses Organic projects growth of GBP 48 million was driven by good growth in both divisions and includes a GBP 13 million reduction in revenue in Mitie Telecoms, where we've exited unprofitable contracts. Pricing accounts for GBP 77 million of additional revenue, and we've shown separately on this bridge the GBP 41 million headwind from completion of the high-margin one-off surge security work last year. When we combine these four blocks, total organic growth for the half is 6.4%. Finally, acquisitions contributed 4% of growth in the half. This block includes the infill acquisitions we've made in the last 18 months, including Argus Fire and ESM, as well as the Marlowe acquisition, which added GBP 51 million of revenue. Sticking with the group numbers, next I'll cover operating profit. This slide shows the key financial themes for the half on a profit bridge, highlighting the resilience of our business model. Organic projects growth of GBP 48 million was driven by good growth in both divisions and includes a GBP 13 million reduction in revenue in Mitie Telecoms, where we've exited unprofitable contracts. organic projects growth of gbp 48 million was driven by good growth in both divisions and includes a gbp 13 million reduction in revenue in mitie telecoms where we've exited unprofitable contracts Pricing accounts for GBP 77 million of additional revenue, and we've shown separately on this bridge the GBP 41 million headwind from completion of the high-margin one-off surge security work last year. pricing accounts for gbp 77 million of additional revenue and we've shown separately on this bridge the gbp 41 million headwind from completion of the high-margin one-off surge security work last year When we combine these four blocks, total organic growth for the half is 6.4%. when we combine these four blocks total organic growth for the half is 6.4% Finally, acquisitions contributed 4% of growth in the half. finally acquisitions contributed 4% of growth in the half This block includes the infill acquisitions we've made in the last 18 months, including Argus Fire and ESM, as well as the Marlowe acquisition, which added GBP 51 million of revenue. this block includes the infill acquisitions we've made in the last 18 months including argus fire and esm as well as the marlowe acquisition which added gbp 51 million of revenue Sticking with the group numbers, next I'll cover operating profit. sticking with the group numbers next i'll cover operating profit This slide shows the key financial themes for the half on a profit bridge, highlighting the resilience of our business model. this slide shows the key financial themes for the half on a profit bridge highlighting the resilience of our business model Strategic profit growth of GBP 31.3 million more than outweighed GBP 23.6 million of profit headwinds. Our growth strategy is focused on core FM projects and acquisitions, underpinned by margin enhancement initiatives. Core FM and projects grew by GBP 6.4 million in the half, driven by new wins combined with the good projects performance across most sectors. These upsides significantly outweighed lost contracts, as well as one specific contract provision, which reduced profit by GBP 5.4 million. I'll come back to this shortly when I cover technical services. Next, we added GBP 4.7 million of incremental profit from acquisitions, including GBP 3.1 million of profit from Marlowe. We've made good progress with margin enhancement initiatives, delivering GBP 10 million of profit, and we've turned the telecoms business around, making a small profit in half one, which is a GBP 10.2 million year-on-year improvement. Strategic profit growth of GBP 31.3 million more than outweighed GBP 23.6 million of profit headwinds. strategic profit growth of gbp 31.3 million more than outweighed gbp 23.6 million of profit headwinds Our growth strategy is focused on core FM projects and acquisitions, underpinned by margin enhancement initiatives. our growth strategy is focused on core fm projects and acquisitions underpinned by margin enhancement initiatives Core FM and projects grew by GBP 6.4 million in the half, driven by new wins combined with the good projects performance across most sectors. core fm and projects grew by gbp 6.4 million in the half driven by new wins combined with the good projects performance across most sectors These upsides significantly outweighed lost contracts, as well as one specific contract provision, which reduced profit by GBP 5.4 million. these upsides significantly outweighed lost contracts as well as one specific contract provision which reduced profit by gbp 5.4 million I'll come back to this shortly when I cover technical services. i'll come back to this shortly when i cover technical services Next, we added GBP 4.7 million of incremental profit from acquisitions, including GBP 3.1 million of profit from Marlowe. next we added gbp 4.7 million of incremental profit from acquisitions including gbp 3.1 million of profit from marlowe We've made good progress with margin enhancement initiatives, delivering GBP 10 million of profit, and we've turned the telecoms business around, making a small profit in half one, which is a GBP 10.2 million year-on-year improvement. we've made good progress with margin enhancement initiatives delivering gbp 10 million of profit and we've turned the telecoms business around making a small profit in half one which is a gbp 10.2 million year-on-year improvement In terms of headwinds, the completed surge response work was a GBP 7.8 million profit headwind. We made GBP 6.2 million of investments to drive growth, including an extra GBP 2.8 million of contract mobilizations. The headwind from National Insurance and inflation was GBP 9.6 million, which I'll cover in a bit more detail now. Once again, we were successful in managing inflationary pressures in the period. Our contractual protections and strong customer relationships enabled us to pass on 95% of cost inflation to our customers, resulting in only a GBP 3.4 million reduction in profit. We expect cost inflation and pricing recovery in half two to be broadly consistent with half one, resulting in a net P&L impact for the year of around GBP 8 million. In terms of headwinds, the completed surge response work was a GBP 7.8 million profit headwind. in terms of headwinds the completed surge response work was a gbp 7.8 million profit headwind We made GBP 6.2 million of investments to drive growth, including an extra GBP 2.8 million of contract mobilizations. we made gbp 6.2 million of investments to drive growth including an extra gbp 2.8 million of contract mobilizations The headwind from National Insurance and inflation was GBP 9.6 million, which I'll cover in a bit more detail now. the headwind from national insurance and inflation was gbp 9.6 million which i'll cover in a bit more detail now Once again, we were successful in managing inflationary pressures in the period. once again we were successful in managing inflationary pressures in the period Our contractual protections and strong customer relationships enabled us to pass on 95% of cost inflation to our customers, resulting in only a GBP 3.4 million reduction in profit. our contractual protections and strong customer relationships enabled us to pass on 95% of cost inflation to our customers resulting in only a gbp 3.4 million reduction in profit We expect cost inflation and pricing recovery in half two to be broadly consistent with half one, resulting in a net P&L impact for the year of around GBP 8 million. we expect cost inflation and pricing recovery in half two to be broadly consistent with half one resulting in a net p&l impact for the year of around gbp 8 million We said in June that we expected our employers' NI bill to go up by around GBP 50 million in FY 2026, and that we'd recover around GBP 35 million of that through contractual protections and commercial negotiations. Recovery in the first half of the year has been slightly better than we expected, leaving a residual cost of only GBP 6.2 million. As a result, we're forecasting a full year net impact of around GBP 13 million, all of which will be offset by MEIs. Moving on then to cover the divisional performance. Over the past two years, we've been simplifying our divisional structure, consolidating four divisions into two. First of all, we broke up central government and defence, moving the more soft services-focused central government business into business services, and the more engineering-focused defence business into technical services. We said in June that we expected our employers' NI bill to go up by around GBP 50 million in FY 2026, and that we'd recover around GBP 35 million of that through contractual protections and commercial negotiations. we said in june that we expected our employers' ni bill to go up by around gbp 50 million in fy 2026 and that we'd recover around gbp 35 million of that through contractual protections and commercial negotiations Recovery in the first half of the year has been slightly better than we expected, leaving a residual cost of only GBP 6.2 million. recovery in the first half of the year has been slightly better than we expected leaving a residual cost of only gbp 6.2 million As a result, we're forecasting a full year net impact of around GBP 13 million, all of which will be offset by MEIs. as a result we're forecasting a full year net impact of around gbp 13 million all of which will be offset by meis Moving on then to cover the divisional performance. moving on then to cover the divisional performance Over the past two years, we've been simplifying our divisional structure, consolidating four divisions into two. over the past two years we've been simplifying our divisional structure consolidating four divisions into two First of all, we broke up central government and defence, moving the more soft services-focused central government business into business services, and the more engineering-focused defence business into technical services. first of all we broke up central government and defence moving the more soft services-focused central government business into business services and the more engineering-focused defence business into technical services We've also broken up communities, with the majority of it being amalgamated into technical services other than immigration and justice, which now sits comfortably in business services alongside the security business. Turning then to business services in more detail, revenue grew by 15.1% to GBP 1.4 billion, with particularly good performances in security, hygiene, and in Spain. The security business grew by 12.2% in the half, despite the GBP 41 million headwind from completion of the surge work last year. Growth was driven by fire safety and security projects, both organically and inorganically, as well as new wins and pricing. Growth of 13.3% in hygiene was driven by some significant wins in FY 2025 and pricing, and the business in Spain has grown by almost a third as a result of the expansion into security and significant wins in the public sector. We've also broken up communities, with the majority of it being amalgamated into technical services other than immigration and justice, which now sits comfortably in business services alongside the security business. we've also broken up communities with the majority of it being amalgamated into technical services other than immigration and justice which now sits comfortably in business services alongside the security business Turning then to business services in more detail, revenue grew by 15.1% to GBP 1.4 billion, with particularly good performances in security, hygiene, and in Spain. turning then to business services in more detail revenue grew by 15.1% to gbp 1.4 billion with particularly good performances in security hygiene and in spain The security business grew by 12.2% in the half, despite the GBP 41 million headwind from completion of the surge work last year. the security business grew by 12.2% in the half despite the gbp 41 million headwind from completion of the surge work last year Growth was driven by fire safety and security projects, both organically and inorganically, as well as new wins and pricing. growth was driven by fire safety and security projects both organically and inorganically as well as new wins and pricing Growth of 13.3% in hygiene was driven by some significant wins in FY 2025 and pricing, and the business in Spain has grown by almost a third as a result of the expansion into security and significant wins in the public sector. growth of 13.3% in hygiene was driven by some significant wins in fy 2025 and pricing and the business in spain has grown by almost a third as a result of the expansion into security and significant wins in the public sector Underneath the total revenue line, we call out projects revenue, which has increased by 30.5% to GBP 167 million as a result of the growth in the fire safety and security projects that I just mentioned. Profitability in business services has been resilient, in line with the first half of last year at GBP 85.3 million, but margins have reduced by 90 basis points to 6%. Revenue growth, MEIs, and the contribution from Marlowe have been positive drivers of profit in the half, but they have been offset by the headwinds from cost inflation, national insurance, and the completion of the high-margin surge work. Moving on to technical services, which has grown by 5.4% to GBP 1.3 billion. Engineering, which includes our private sector maintenance contracts and larger engineering projects, grew by 4.8% in the half. Underneath the total revenue line, we call out projects revenue, which has increased by 30.5% to GBP 167 million as a result of the growth in the fire safety and security projects that I just mentioned. underneath the total revenue line we call out projects revenue which has increased by 30.5% to gbp 167 million as a result of the growth in the fire safety and security projects that i just mentioned Profitability in business services has been resilient, in line with the first half of last year at GBP 85.3 million, but margins have reduced by 90 basis points to 6%. profitability in business services has been resilient in line with the first half of last year at gbp 85.3 million but margins have reduced by 90 basis points to 6% Revenue growth, MEIs, and the contribution from Marlowe have been positive drivers of profit in the half, but they have been offset by the headwinds from cost inflation, national insurance, and the completion of the high-margin surge work. revenue growth meis and the contribution from marlowe have been positive drivers of profit in the half but they have been offset by the headwinds from cost inflation national insurance and the completion of the high-margin surge work Moving on to technical services, which has grown by 5.4% to GBP 1.3 billion. moving on to technical services which has grown by 5.4% to gbp 1.3 billion Engineering, which includes our private sector maintenance contracts and larger engineering projects, grew by 4.8% in the half. engineering which includes our private sector maintenance contracts and larger engineering projects grew by 4.8% in the half New wins, project work, and pricing more than offset the loss of one notable contract and the contracts that we've exited in the telecoms infrastructure business. The defence growth of 5.2% and the HLG&E growth of 7.1% were largely driven by increases in project work. In defence, this included projects for the DIO in Gibraltar and Cyprus, and in HLG&E, the project's growth was largely in the healthcare sector across a number of hospital contracts. These DIO and HLG&E projects, combined with good growth in data centers and power and grid, helped total TS projects to grow by 10.6% to GBP 469 million. This project's growth, combined with MEIs and the turnaround in the telecoms business, drove a 22.9% increase in profit, boosting margins by 60 basis points. New wins, project work, and pricing more than offset the loss of one notable contract and the contracts that we've exited in the telecoms infrastructure business. new wins project work and pricing more than offset the loss of one notable contract and the contracts that we've exited in the telecoms infrastructure business The defence growth of 5.2% and the HLG&E growth of 7.1% were largely driven by increases in project work. the defence growth of 5.2% and the hlg&e growth of 7.1% were largely driven by increases in project work In defence, this included projects for the DIO in Gibraltar and Cyprus, and in HLG&E, the project's growth was largely in the healthcare sector across a number of hospital contracts. in defence this included projects for the dio in gibraltar and cyprus and in hlg&e the project's growth was largely in the healthcare sector across a number of hospital contracts These DIO and HLG&E projects, combined with good growth in data centers and power and grid, helped total TS projects to grow by 10.6% to GBP 469 million. these dio and hlg&e projects combined with good growth in data centers and power and grid helped total ts projects to grow by 10.6% to gbp 469 million This project's growth, combined with MEIs and the turnaround in the telecoms business, drove a 22.9% increase in profit, boosting margins by 60 basis points. this project's growth combined with meis and the turnaround in the telecoms business drove a 22.9% increase in profit boosting margins by 60 basis points However, although margins have improved, they continue to be impacted by the headwinds from inflation and National Insurance, as well as a provision for one loss-making contract. As I said earlier, this contract was a GBP 5.4 million headwind to technical services profit in the half, but it will complete in May 2026. It sits in a structurally low-margin sector, which we're exiting. Without this contract provision, TS profits would have increased by 36%, and margin would have been 40 basis points higher. We expect TS margins to improve significantly in half two as projects revenue and margin enhancement initiatives ramp up. My final P&L slide shows the consolidation of the group numbers, with the business services and technical services profits that I've just talked through, combining with GBP 26.9 million of corporate costs to make up the GBP 108.8 million of group profit and the 4.1% margin. However, although margins have improved, they continue to be impacted by the headwinds from inflation and National Insurance, as well as a provision for one loss-making contract. however although margins have improved they continue to be impacted by the headwinds from inflation and national insurance as well as a provision for one loss-making contract As I said earlier, this contract was a GBP 5.4 million headwind to technical services profit in the half, but it will complete in May 2026. as i said earlier this contract was a gbp 5.4 million headwind to technical services profit in the half but it will complete in may 2026 It sits in a structurally low-margin sector, which we're exiting. it sits in a structurally low-margin sector which we're exiting Without this contract provision, TS profits would have increased by 36%, and margin would have been 40 basis points higher. without this contract provision ts profits would have increased by 36% and margin would have been 40 basis points higher We expect TS margins to improve significantly in half two as projects revenue and margin enhancement initiatives ramp up. we expect ts margins to improve significantly in half two as projects revenue and margin enhancement initiatives ramp up My final P&L slide shows the consolidation of the group numbers, with the business services and technical services profits that I've just talked through, combining with GBP 26.9 million of corporate costs to make up the GBP 108.8 million of group profit and the 4.1% margin. my final p&l slide shows the consolidation of the group numbers with the business services and technical services profits that i've just talked through combining with gbp 26.9 million of corporate costs to make up the gbp 108.8 million of group profit and the 4.1% margin Corporate costs are a little higher in the period as a result of inflation and the National Insurance increase. My last two slides cover cash flow and the balance sheet, and we generated a free cash inflow of GBP 51.9 million in the half, with the key driver being the operating profit of GBP 108.8 million. Other items were a GBP 25.6 million outflow of cash and was largely made up of acquisition-related costs, as well as the costs of delivering our margin enhancement initiatives. Next, we have a cash outflow from working capital of GBP 24.4 million, driven by three key factors. Corporate costs are a little higher in the period as a result of inflation and the National Insurance increase. corporate costs are a little higher in the period as a result of inflation and the national insurance increase My last two slides cover cash flow and the balance sheet, and we generated a free cash inflow of GBP 51.9 million in the half, with the key driver being the operating profit of GBP 108.8 million. my last two slides cover cash flow and the balance sheet and we generated a free cash inflow of gbp 51.9 million in the half with the key driver being the operating profit of gbp 108.8 million Other items were a GBP 25.6 million outflow of cash and was largely made up of acquisition-related costs, as well as the costs of delivering our margin enhancement initiatives. other items were a gbp 25.6 million outflow of cash and was largely made up of acquisition-related costs as well as the costs of delivering our margin enhancement initiatives Next, we have a cash outflow from working capital of GBP 24.4 million, driven by three key factors. next we have a cash outflow from working capital of gbp 24.4 million driven by three key factors Our seasonal cash outflow in the first half, where we pay suppliers for the high volume of project work that's completed at the end of the previous year, the growth in the projects business, which consumes more working capital than FM, and longer payment terms on a number of new wins, particularly in the retail sector. Offsetting these outflows, we've made further process improvements and rationalized our supply base. CapEx, leases, interest, and tax was a GBP 61.1 million cash outflow, GBP 13.8 million higher than the first half of last year. The increase was driven by GBP 8.7 million of CapEx, largely for new contract mobilizations, and GBP 3.7 million of additional interest as a result of our capital deployment actions. These capital deployment actions account for GBP 305.1 million of cash outflow, including GBP 41 million of dividends and GBP 228 million of cash consideration for Marlowe. Our seasonal cash outflow in the first half, where we pay suppliers for the high volume of project work that's completed at the end of the previous year, the growth in the projects business, which consumes more working capital than FM, and longer payment terms on a number of new wins, particularly in the retail sector. our seasonal cash outflow in the first half where we pay suppliers for the high volume of project work that's completed at the end of the previous year the growth in the projects business which consumes more working capital than fm and longer payment terms on a number of new wins particularly in the retail sector Offsetting these outflows, we've made further process improvements and rationalized our supply base. offsetting these outflows we've made further process improvements and rationalized our supply base CapEx, leases, interest, and tax was a GBP 61.1 million cash outflow, GBP 13.8 million higher than the first half of last year. capex leases interest and tax was a gbp 61.1 million cash outflow, gbp 13.8 million higher than the first half of last year The increase was driven by GBP 8.7 million of CapEx, largely for new contract mobilizations, and GBP 3.7 million of additional interest as a result of our capital deployment actions. the increase was driven by gbp 8.7 million of capex largely for new contract mobilizations and gbp 3.7 million of additional interest as a result of our capital deployment actions These capital deployment actions account for GBP 305.1 million of cash outflow, including GBP 41 million of dividends and GBP 228 million of cash consideration for Marlowe. these capital deployment actions account for gbp 305.1 million of cash outflow including gbp 41 million of dividends and gbp 228 million of cash consideration for marlowe Finally, at the bottom of the page, we see the overall increase in net debt of GBP 272.4 million. This increase results in a closing net debt of GBP 471 million and an average daily net debt of GBP 332 million, with the average leverage ratio of one times remaining at the lower end of our targeted range. Debt to days are consistent with FY 2025, and credit to days have improved as we rationalize our supply base and continue to improve our processes. ROIC reduced by 16.3% as a result of the Marlowe acquisition, where we've added GBP 380 million of invested capital, but only two months of operating profit. Finally, net assets increased to GBP 544 million after adding the net profit for the year and the shares issued for Marlowe, offset by dividends, share buybacks, and market purchases for employee share schemes. In summary, we've made a good start to FY 2026. Finally, at the bottom of the page, we see the overall increase in net debt of GBP 272.4 million. finally at the bottom of the page we see the overall increase in net debt of gbp 272.4 million This increase results in a closing net debt of GBP 471 million and an average daily net debt of GBP 332 million, with the average leverage ratio of one times remaining at the lower end of our targeted range. this increase results in a closing net debt of gbp 471 million and an average daily net debt of gbp 332 million with the average leverage ratio of one times remaining at the lower end of our targeted range Debt to days are consistent with FY 2025, and credit to days have improved as we rationalize our supply base and continue to improve our processes. debt to days are consistent with fy 2025 and credit to days have improved as we rationalize our supply base and continue to improve our processes ROIC reduced by 16.3% as a result of the Marlowe acquisition, where we've added GBP 380 million of invested capital, but only two months of operating profit. roic reduced by 16.3% as a result of the marlowe acquisition where we've added gbp 380 million of invested capital but only two months of operating profit Finally, net assets increased to GBP 544 million after adding the net profit for the year and the shares issued for Marlowe, offset by dividends, share buybacks, and market purchases for employee share schemes. finally net assets increased to gbp 544 million after adding the net profit for the year and the shares issued for marlowe offset by dividends share buybacks and market purchases for employee share schemes In summary, we've made a good start to FY 2026. in summary we've made a good start to fy 2026 Revenue growth has been better than our high single-digit guidance, and we've maintained our margins despite the investments we've made and the headwinds from inflation, National Insurance, and the completion of the surge work. We made a positive step forward in EPS despite higher interest costs. We generated good free cash flow, and ROIC's fallen below 20%, but only temporarily. As we look ahead to the second half of the year, we expect revenue growth to continue in double digits. Margins will be higher than in half one, and we remain confident of achieving our full year profit target of at least GBP 260 million. Finance costs will be higher as our leverage increases due to the acquisitions and the share buybacks, and EPS will grow despite these higher finance costs and the shares issued to acquire Marlowe. Revenue growth has been better than our high single-digit guidance, and we've maintained our margins despite the investments we've made and the headwinds from inflation, National Insurance, and the completion of the surge work. revenue growth has been better than our high single-digit guidance and we've maintained our margins despite the investments we've made and the headwinds from inflation national insurance and the completion of the surge work We made a positive step forward in EPS despite higher interest costs. we made a positive step forward in eps despite higher interest costs We generated good free cash flow, and ROIC's fallen below 20%, but only temporarily. we generated good free cash flow and roic's fallen below 20% but only temporarily As we look ahead to the second half of the year, we expect revenue growth to continue in double digits. as we look ahead to the second half of the year we expect revenue growth to continue in double digits Margins will be higher than in half one, and we remain confident of achieving our full year profit target of at least GBP 260 million. margins will be higher than in half one and we remain confident of achieving our full year profit target of at least gbp 260 million Finance costs will be higher as our leverage increases due to the acquisitions and the share buybacks, and EPS will grow despite these higher finance costs and the shares issued to acquire Marlowe. finance costs will be higher as our leverage increases due to the acquisitions and the share buybacks and eps will grow despite these higher finance costs and the shares issued to acquire marlowe Completing the FY 2026 guidance, we expect free cash flow to be more than GBP 120 million this year, and ROIC will increase back towards our targeted 20%. On that note, I'll hand back to Phil. Completing the FY 2026 guidance, we expect free cash flow to be more than GBP 120 million this year, and ROIC will increase back towards our targeted 20%. completing the fy 2026 guidance we expect free cash flow to be more than gbp 120 million this year and roic will increase back towards our targeted 20% On that note, I'll hand back to Phil. on that note i'll hand back to phil

Speaker 7: Thank you, Simon. They seem a decent set of results to me. I think more importantly now is to talk about where we are on our strategic journey since we pivoted our business model from service-led facilities management to project-led facilities transformation, and now to regulation-led facilities compliance. Just as a reminder, our strategic plan was focused on growth, growth over three pillars, and the foundation of our strategy, Pillar One, was centered on growth from the core, key account growth and scope increases, delivering condition-based maintenance, risk-based security, demand-led hygiene for our customers. This is the heartland of facilities management. Thank you, Simon. thank you simon They seem a decent set of results to me. they seem a decent set of results to me I think more importantly now is to talk about where we are on our strategic journey since we pivoted our business model from service-led facilities management to project-led facilities transformation, and now to regulation-led facilities compliance. i think more importantly now is to talk about where we are on our strategic journey since we pivoted our business model from service-led facilities management to project-led facilities transformation and now to regulation-led facilities compliance Just as a reminder, our strategic plan was focused on growth, growth over three pillars, and the foundation of our strategy, Pillar One, was centered on growth from the core, key account growth and scope increases, delivering condition-based maintenance, risk-based security, demand-led hygiene for our customers. just as a reminder our strategic plan was focused on growth growth over three pillars and the foundation of our strategy pillar one was centered on growth from the core key account growth and scope increases delivering condition-based maintenance risk-based security demand-led hygiene for our customers This is the heartland of facilities management. this is the heartland of facilities management Pillar Two of our growth strategy was centered on our projects capability and infill acquisitions, transforming the built environment, better workplaces, greater energy efficiency, higher security. This is the heartland of facilities transformation. Our third pillar of growth was M&A, bringing in new capabilities to meet our customers' evolving needs in sustainability, environmental compliance, and fire and security. This was our move into facilities compliance with the acquisition of Marlowe. Taking together, our strategy set out to build an unrivaled set of integrated capabilities to deliver the future of high-performing places. Now, any successful strategy needs to be underpinned by attractive macro trends, and Mitie is, from decarbonization, higher security, repurposing the grid, accelerating data center investments, to increased public sector spending in defense, in justice, in healthcare and immigration. We're fishing where the fish are. Pillar Two of our growth strategy was centered on our projects capability and infill acquisitions, transforming the built environment, better workplaces, greater energy efficiency, higher security. pillar two of our growth strategy was centered on our projects capability and infill acquisitions transforming the built environment better workplaces greater energy efficiency higher security This is the heartland of facilities transformation. this is the heartland of facilities transformation Our third pillar of growth was M&A, bringing in new capabilities to meet our customers' evolving needs in sustainability, environmental compliance, and fire and security. our third pillar of growth was m&a bringing in new capabilities to meet our customers' evolving needs in sustainability environmental compliance and fire and security This was our move into facilities compliance with the acquisition of Marlowe. this was our move into facilities compliance with the acquisition of marlowe Taking together, our strategy set out to build an unrivaled set of integrated capabilities to deliver the future of high-performing places. taking together our strategy set out to build an unrivaled set of integrated capabilities to deliver the future of high-performing places Now, any successful strategy needs to be underpinned by attractive macro trends, and Mitie is, from decarbonization, higher security, repurposing the grid, accelerating data center investments, to increased public sector spending in defense, in justice, in healthcare and immigration. now any successful strategy needs to be underpinned by attractive macro trends and mitie is from decarbonization higher security repurposing the grid accelerating data center investments to increased public sector spending in defense in justice in healthcare and immigration We're fishing where the fish are. we're fishing where the fish are Since we launched our new strategy, two further macro trends have emerged. Number nine here, building compliance regulations are raising compliance requirements. Number ten, investments in water infrastructure will top GBP 100 billion over the next five years. These are themes that I will return to shortly. In terms of our performance, as Simon touched on, H1 revenue was good. New wins lapping a strong H1 FY 2025, plus renewals grew to a record GBP 3.8 billion total contract value in the period. More importantly, as a leading indicator of growing momentum, our order book grew 31% year on year to GBP 16.5 billion TCV. Now, we have split the order book by time buckets this time. Since we launched our new strategy, two further macro trends have emerged. since we launched our new strategy two further macro trends have emerged Number nine here, building compliance regulations are raising compliance requirements. number nine here building compliance regulations are raising compliance requirements Number ten, investments in water infrastructure will top GBP 100 billion over the next five years. number ten investments in water infrastructure will top gbp 100 billion over the next five years These are themes that I will return to shortly. these are themes that i will return to shortly In terms of our performance, as Simon touched on, H1 revenue was good. in terms of our performance as simon touched on h1 revenue was good New wins lapping a strong H1 FY 2025, plus renewals grew to a record GBP 3.8 billion total contract value in the period. new wins lapping a strong h1 fy 2025 plus renewals grew to a record gbp 3.8 billion total contract value in the period More importantly, as a leading indicator of growing momentum, our order book grew 31% year on year to GBP 16.5 billion TCV. more importantly as a leading indicator of growing momentum our order book grew 31% year on year to gbp 16.5 billion tcv Now, we have split the order book by time buckets this time. now, we have split the order book by time buckets this time On the lower left, you can see that revenue expected to be produced from the order book over the next three years has grown by 32% to GBP 8.6 billion of TCF since this time last year. On the right, you'll see how our pipeline has not only grown in size from GBP 17.6 billion TCV two years ago to GBP 33 billion TCV today, but it's also grown in quality. Let me explain that. The pipeline funnels opportunities from prospecting at the very early stages, such as identifying future bids on public sector frameworks, through to a pre-qualification questionnaire, that was a bit of a mouthful, and becoming qualified to bid. Then onto a bid submission itself, with the final stage of BAFO, best and final offer, before a decision is finally made by the client. As you can see, the quality of our pipeline has been growing. On the lower left, you can see that revenue expected to be produced from the order book over the next three years has grown by 32% to GBP 8.6 billion of TCF since this time last year. on the lower left you can see that revenue expected to be produced from the order book over the next three years has grown by 32% to gbp 8.6 billion of tcf since this time last year On the right, you'll see how our pipeline has not only grown in size from GBP 17.6 billion TCV two years ago to GBP 33 billion TCV today, but it's also grown in quality. on the right you'll see how our pipeline has not only grown in size from gbp 17.6 billion tcv two years ago to gbp 33 billion tcv today but it's also grown in quality Let me explain that. let me explain that The pipeline funnels opportunities from prospecting at the very early stages, such as identifying future bids on public sector frameworks, through to a pre-qualification questionnaire, that was a bit of a mouthful, and becoming qualified to bid. the pipeline funnels opportunities from prospecting at the very early stages such as identifying future bids on public sector frameworks through to a pre-qualification questionnaire that was a bit of a mouthful and becoming qualified to bid Then onto a bid submission itself, with the final stage of BAFO, best and final offer, before a decision is finally made by the client. then onto a bid submission itself with the final stage of bafo best and final offer before a decision is finally made by the client As you can see, the quality of our pipeline has been growing. as you can see the quality of our pipeline has been growing At this time, at the moment, we've got over GBP 2 billion of TCV sitting in BAFO. This is another leading indicator of our growing momentum, particularly given our improving bid win rates. This growing momentum anchored in the four strategic imperatives shown here gives us confidence that our business model will not only deliver our FY 2025 to FY 2027 ambitions, but will also sustain growth beyond this current three-year plan. Sustaining growth, firstly, by capturing more of our clients' facilities management share of wallet, by upgrading, cross-training our strategic client directors, SCDs. We've identified over GBP 1 billion of additional client spend that we could deliver. Secondly, sustaining growth by turbocharging projects, building a GBP 2 billion-plus division over the next few years. Sustaining growth, thirdly, in compliance and water. At this time, at the moment, we've got over GBP 2 billion of TCV sitting in BAFO. at this time at the moment we've got over gbp 2 billion of tcv sitting in bafo This is another leading indicator of our growing momentum, particularly given our improving bid win rates. this is another leading indicator of our growing momentum particularly given our improving bid win rates This growing momentum anchored in the four strategic imperatives shown here gives us confidence that our business model will not only deliver our FY 2025 to FY 2027 ambitions, but will also sustain growth beyond this current three-year plan. this growing momentum anchored in the four strategic imperatives shown here gives us confidence that our business model will not only deliver our fy 2025 to fy 2027 ambitions but will also sustain growth beyond this current three-year plan Sustaining growth, firstly, by capturing more of our clients' facilities management share of wallet, by upgrading, cross-training our strategic client directors, SCDs. sustaining growth firstly by capturing more of our clients' facilities management share of wallet by upgrading cross-training our strategic client directors scds We've identified over GBP 1 billion of additional client spend that we could deliver. we've identified over gbp 1 billion of additional client spend that we could deliver Secondly, sustaining growth by turbocharging projects, building a GBP 2 billion-plus division over the next few years. secondly sustaining growth by turbocharging projects building a gbp 2 billion-plus division over the next few years Sustaining growth, thirdly, in compliance and water. sustaining growth thirdly in compliance and water Following the Marlowe acquisition, we now have a GBP 550 million fire and security environmental services compliance business, and we aim to grow this to GBP 1 billion in the coming years. As our AI strategy drives efficiencies and costs out, we see margins expanding beyond FY 2027. Now, a little bit of detail on each of these imperatives, starting with SCDs, strategic client directors, and client share of wallet. By deepening our relationships within our strategic accounts, we know we can deliver more value to our clients. Integrated facilities management, IFM, is only currently delivered to 40% of our top 50 contracts. In just 10 contracts where we've completed a share of wallet deep dive with Kevin, our sales director, we've identified a further GBP 500 million of work in security and hygiene, engineering and projects, and in compliance, currently delivered to our clients by third parties. Following the Marlowe acquisition, we now have a GBP 550 million fire and security environmental services compliance business, and we aim to grow this to GBP 1 billion in the coming years. following the marlowe acquisition we now have a gbp 550 million fire and security environmental services compliance business and we aim to grow this to gbp 1 billion in the coming years As our AI strategy drives efficiencies and costs out, we see margins expanding beyond FY 2027. as our ai strategy drives efficiencies and costs out we see margins expanding beyond fy 2027 Now, a little bit of detail on each of these imperatives, starting with SCDs, strategic client directors, and client share of wallet. now a little bit of detail on each of these imperatives starting with scds strategic client directors and client share of wallet By deepening our relationships within our strategic accounts, we know we can deliver more value to our clients. by deepening our relationships within our strategic accounts we know we can deliver more value to our clients Integrated facilities management, IFM, is only currently delivered to 40% of our top 50 contracts. integrated facilities management ifm is only currently delivered to 40% of our top 50 contracts In just 10 contracts where we've completed a share of wallet deep dive with Kevin, our sales director, we've identified a further GBP 500 million of work in security and hygiene, engineering and projects, and in compliance, currently delivered to our clients by third parties. in just 10 contracts where we've completed a share of wallet deep dive with kevin our sales director we've identified a further gbp 500 million of work in security and hygiene engineering and projects and in compliance currently delivered to our clients by third parties Winning here requires more senior business builders with new propositions, a wider understanding of Mitie's capabilities, and how AI and data can drive insights and upsells with stretch incentivisation. Our best SCD of our largest strategic client is now leading this new team. We know how to do it when done well. Take two examples here on the right. One is a retailer has gone from annual revenues of GBP 16 million at the start to an estimated GBP 55 million this year. We've added more facilities management services, increased projects. Roof-mounted solar panels, for example, is a big push for this client. That's before we talked to them about refrigeration services, where we announced an infill acquisition today, or about FGAS compliance and water services from Marlowe. The second is a transport customer with annual revenues of GBP 25 million in FY 2014. Today, that number is GBP 119 million. Winning here requires more senior business builders with new propositions, a wider understanding of Mitie's capabilities, and how AI and data can drive insights and upsells with stretch incentivisation. winning here requires more senior business builders with new propositions a wider understanding of mitie's capabilities and how ai and data can drive insights and upsells with stretch incentivisation Our best SCD of our largest strategic client is now leading this new team. our best scd of our largest strategic client is now leading this new team We know how to do it when done well. we know how to do it when done well Take two examples here on the right. take two examples here on the right One is a retailer has gone from annual revenues of GBP 16 million at the start to an estimated GBP 55 million this year. one is a retailer has gone from annual revenues of gbp 16 million at the start to an estimated gbp 55 million this year We've added more facilities management services, increased projects. we've added more facilities management services increased projects Roof-mounted solar panels, for example, is a big push for this client. roof-mounted solar panels for example is a big push for this client That's before we talked to them about refrigeration services, where we announced an infill acquisition today, or about FGAS compliance and water services from Marlowe. that's before we talked to them about refrigeration services where we announced an infill acquisition today or about fgas compliance and water services from marlowe The second is a transport customer with annual revenues of GBP 25 million in FY 2014. the second is a transport customer with annual revenues of gbp 25 million in fy 2014 Today, that number is GBP 119 million. today that number is gbp 119 million We have added more sites and more services. Turning to the blue triangle in the upper right there, we always expected growth from the core of facilities management to be the biggest contributor of our three-year plan. Growth from the core, for me, is probably the most important thing that we think about day to day. We have outperformed our own expectations here and have already delivered over 90% of our GBP 600 million incremental growth target at the halfway stage of our strategy. Our block two growth imperative is turbocharging projects in facilities transformation. By any measure here, our performance has been outstanding, with strong growth from the capabilities we have added in fire and security, power and grid, and building engineering. An order book of GBP 2.9 billion today, up 53% year on year. A pipeline of GBP 6.9 billion, up 130% year on year. We have added more sites and more services. we have added more sites and more services Turning to the blue triangle in the upper right there, we always expected growth from the core of facilities management to be the biggest contributor of our three-year plan. turning to the blue triangle in the upper right there we always expected growth from the core of facilities management to be the biggest contributor of our three-year plan Growth from the core, for me, is probably the most important thing that we think about day to day. growth from the core for me is probably the most important thing that we think about day to day We have outperformed our own expectations here and have already delivered over 90% of our GBP 600 million incremental growth target at the halfway stage of our strategy. we have outperformed our own expectations here and have already delivered over 90% of our gbp 600 million incremental growth target at the halfway stage of our strategy Our block two growth imperative is turbocharging projects in facilities transformation. our block two growth imperative is turbocharging projects in facilities transformation By any measure here, our performance has been outstanding, with strong growth from the capabilities we have added in fire and security, power and grid, and building engineering. by any measure here our performance has been outstanding with strong growth from the capabilities we have added in fire and security power and grid and building engineering An order book of GBP 2.9 billion today, up 53% year on year. an order book of gbp 2.9 billion today up 53% year on year A pipeline of GBP 6.9 billion, up 130% year on year. a pipeline of gbp 6.9 billion up 130% year on year An average project size is now at GBP 270,000 per job, up 80% year on year. Turning again to the maroon triangle, this time on the upper right, we have outperformed our own expectations here and have just about delivered all of the GBP 200 million incremental growth that we set for FY 2027 at the halfway stage in our strategy. Our final growth imperative is in the GBP 7.6 billion facilities compliance market, where the acquisition of Marlowe positions us as the market leader, providing us with a platform to accelerate growth. Adding Marlowe's capabilities to Mitie's existing fire and security business created a differentiated total fire offer, with a full suite of active fire and passive fire solutions, as well as creating the market-leading provider in security systems. What really excites us about Marlowe on the right-hand side is their capabilities to build a total managed water solution. An average project size is now at GBP 270,000 per job, up 80% year on year. an average project size is now at gbp 270,000 per job up 80% year on year Turning again to the maroon triangle, this time on the upper right, we have outperformed our own expectations here and have just about delivered all of the GBP 200 million incremental growth that we set for FY 2027 at the halfway stage in our strategy. turning again to the maroon triangle this time on the upper right we have outperformed our own expectations here and have just about delivered all of the gbp 200 million incremental growth that we set for fy 2027 at the halfway stage in our strategy Our final growth imperative is in the GBP 7.6 billion facilities compliance market, where the acquisition of Marlowe positions us as the market leader, providing us with a platform to accelerate growth. our final growth imperative is in the gbp 7.6 billion facilities compliance market where the acquisition of marlowe positions us as the market leader providing us with a platform to accelerate growth Adding Marlowe's capabilities to Mitie's existing fire and security business created a differentiated total fire offer, with a full suite of active fire and passive fire solutions, as well as creating the market-leading provider in security systems. adding marlowe's capabilities to mitie's existing fire and security business created a differentiated total fire offer with a full suite of active fire and passive fire solutions as well as creating the market-leading provider in security systems What really excites us about Marlowe on the right-hand side is their capabilities to build a total managed water solution. what really excites us about marlowe on the right-hand side is their capabilities to build a total managed water solution As some of you will have already heard me say, water is the new energy. We buy it, we meter it, we recycle it, and we report the usage of it. We have already signed up two existing Mitie clients to take these new water services literally in the last couple of months. The really big prize for me is AMP8, Asset Management Period 8, the latest set of regulations from Ofwat that will see GBP 104 billion invested in water efficiency, resilience, and sustainability between 2025 and 2030. This is a material opportunity for Marlowe Environmental to deliver end-to-end solutions across the water services value chain, from sourcing and metering through to transport, wastewater management, and compliance, and delivered at national scale. Simply put, our aim is to be the provider of choice for our clients as they navigate increasingly complex regulatory requirements and sustainability goals built around water. As some of you will have already heard me say, water is the new energy. as some of you will have already heard me say water is the new energy We buy it, we meter it, we recycle it, and we report the usage of it. We have already signed up two existing Mitie clients to take these new water services literally in the last couple of months. we buy it we meter it we recycle it and we report the usage of it. we have already signed up two existing mitie clients to take these new water services literally in the last couple of months The really big prize for me is AMP8, Asset Management Period 8, the latest set of regulations from Ofwat that will see GBP 104 billion invested in water efficiency, resilience, and sustainability between 2025 and 2030. the really big prize for me is amp8 asset management period 8 the latest set of regulations from ofwat that will see gbp 104 billion invested in water efficiency resilience and sustainability between 2025 and 2030 This is a material opportunity for Marlowe Environmental to deliver end-to-end solutions across the water services value chain, from sourcing and metering through to transport, wastewater management, and compliance, and delivered at national scale. this is a material opportunity for marlowe environmental to deliver end-to-end solutions across the water services value chain from sourcing and metering through to transport wastewater management and compliance and delivered at national scale Simply put, our aim is to be the provider of choice for our clients as they navigate increasingly complex regulatory requirements and sustainability goals built around water. simply put our aim is to be the provider of choice for our clients as they navigate increasingly complex regulatory requirements and sustainability goals built around water Take the public sector, for example. Previously, Marlowe did not have pre-qual approval in public sector bids. Mitie is a Cabinet Office-approved strategic supplier, and we are already now pre-cleared to participate in some material upcoming public sector bids. On the right upper triangle again, we set a target there of GBP 400 million of revenue from M&A step-out, the step-out being facilities compliance. It is early days after less than two months of owning the Marlowe business, but revenues will now grow rapidly as Marlowe scales up to approach the GBP 400 million target. Now, whilst we are on the subject of Marlowe, it would be remiss of me not to take a moment to update you on our progress with the acquisition and the integration. The business is trading in line with our expectations, and the synergy workstreams are moving ahead. Take the public sector, for example. take the public sector for example Previously, Marlowe did not have pre-qual approval in public sector bids. previously marlowe did not have pre-qual approval in public sector bids Mitie is a Cabinet Office-approved strategic supplier, and we are already now pre-cleared to participate in some material upcoming public sector bids. mitie is a cabinet office-approved strategic supplier and we are already now pre-cleared to participate in some material upcoming public sector bids On the right upper triangle again, we set a target there of GBP 400 million of revenue from M&A step-out, the step-out being facilities compliance. It is early days after less than two months of owning the Marlowe business, but revenues will now grow rapidly as Marlowe scales up to approach the GBP 400 million target. on the right upper triangle again we set a target there of gbp 400 million of revenue from m&a step-out the step-out being facilities compliance. it is early days after less than two months of owning the marlowe business but revenues will now grow rapidly as marlowe scales up to approach the gbp 400 million target Now, whilst we are on the subject of Marlowe, it would be remiss of me not to take a moment to update you on our progress with the acquisition and the integration. now whilst we are on the subject of marlowe it would be remiss of me not to take a moment to update you on our progress with the acquisition and the integration The business is trading in line with our expectations, and the synergy workstreams are moving ahead. the business is trading in line with our expectations and the synergy workstreams are moving ahead We're on track to deliver at least GBP 15 million of cost synergies in FY 2027, and we'll exit FY 2027 having fully integrated Marlowe and having captured the full GBP 30 million of synergies to be delivered in FY 2028. We're removing duplicate corporate, administrative, and other support functions through automation. We've reviewed procurement opportunities and are moving the Marlowe supply chain to Mitie's preferred supply list. Three sites in Marlowe's property portfolio have already been closed. We're exploring major efficiencies from automating field force scheduling and delivering route density savings. We've already migrated 1,500 of Marlowe's environmental services colleagues onto Mitie's HR platforms, putting in controls around pay rises and bonuses with the remaining fire and security colleagues to follow before the fiscal year end. We're migrating Marlowe's IT applications onto Mitie's Azure platform to raise cyber resiliency. In short, we're making good progress. We're on track to deliver at least GBP 15 million of cost synergies in FY 2027, and we'll exit FY 2027 having fully integrated Marlowe and having captured the full GBP 30 million of synergies to be delivered in FY 2028. we're on track to deliver at least gbp 15 million of cost synergies in fy 2027 and we'll exit fy 2027 having fully integrated marlowe and having captured the full gbp 30 million of synergies to be delivered in fy 2028 We're removing duplicate corporate, administrative, and other support functions through automation. we're removing duplicate corporate administrative and other support functions through automation We've reviewed procurement opportunities and are moving the Marlowe supply chain to Mitie's preferred supply list. we've reviewed procurement opportunities and are moving the marlowe supply chain to mitie's preferred supply list Three sites in Marlowe's property portfolio have already been closed. three sites in marlowe's property portfolio have already been closed We're exploring major efficiencies from automating field force scheduling and delivering route density savings. we're exploring major efficiencies from automating field force scheduling and delivering route density savings We've already migrated 1,500 of Marlowe's environmental services colleagues onto Mitie's HR platforms, putting in controls around pay rises and bonuses with the remaining fire and security colleagues to follow before the fiscal year end. we've already migrated 1,500 of marlowe's environmental services colleagues onto mitie's hr platforms putting in controls around pay rises and bonuses with the remaining fire and security colleagues to follow before the fiscal year end We're migrating Marlowe's IT applications onto Mitie's Azure platform to raise cyber resiliency. we're migrating marlowe's it applications onto mitie's azure platform to raise cyber resiliency In short, we're making good progress. in short we're making good progress Of course, in FY 2027 and beyond, Marlowe will be a positive to the group's total overall margin. A final contributor to our 5% margin target, and the last of our four imperatives, is the execution of our AI strategy, reimagining and automating workforce and workflow management to drive better service efficiencies, reduce back-office costs across the business, and drive margin accretion. I have tried to capture our thinking in the next two slides, going back to the MITIEverse at the center there and the Mitie Command Centre, which we introduced at our capital markets event in October 2023. We have not forgotten about it, creating the single pane of glass of the built environment. Our AI strategy has four components. Upper left, all our core systems, which are already cloud-based, have been AI-enabled, or in the case of Workplace Plus and SAP, will shortly be AI-enabled. Of course, in FY 2027 and beyond, Marlowe will be a positive to the group's total overall margin. of course in fy 2027 and beyond marlowe will be a positive to the group's total overall margin A final contributor to our 5% margin target, and the last of our four imperatives, is the execution of our AI strategy, reimagining and automating workforce and workflow management to drive better service efficiencies, reduce back-office costs across the business, and drive margin accretion. a final contributor to our 5% margin target and the last of our four imperatives is the execution of our ai strategy reimagining and automating workforce and workflow management to drive better service efficiencies reduce back-office costs across the business and drive margin accretion I have tried to capture our thinking in the next two slides, going back to the MITIEverse at the center there and the Mitie Command Centre, which we introduced at our capital markets event in October 2023. i have tried to capture our thinking in the next two slides going back to the mitieverse at the center there and the mitie command centre which we introduced at our capital markets event in october 2023 We have not forgotten about it, creating the single pane of glass of the built environment. we have not forgotten about it creating the single pane of glass of the built environment Our AI strategy has four components. our ai strategy has four components Upper left, all our core systems, which are already cloud-based, have been AI-enabled, or in the case of Workplace Plus and SAP, will shortly be AI-enabled. upper left all our core systems which are already cloud-based have been ai-enabled or in the case of workplace plus and sap will shortly be ai-enabled Lower left, all of our major customer apps, Merlin for risk and for cleaning, Aria, Esme, and Net Zero, are all interconnected via our HARK connected workplace to the IoT platform and are producing real-time data. In the upper right, the output from our core systems and apps feeds our leading enterprise insight platform, Mosaic 360, developed on Microsoft Fabric and integrating all the operational data across all our intelligence solutions. Mosaic 360 provides comprehensive operational and strategic insights into the daily operations of the built environment of our clients. Finally, bottom right, as it were, our task mining from ScanAI has led to a growing number of AI bots or agents, enabling smarter, faster, more consistent ways of delivering tasks. Lower left, all of our major customer apps, Merlin for risk and for cleaning, Aria, Esme, and Net Zero, are all interconnected via our HARK connected workplace to the IoT platform and are producing real-time data. lower left all of our major customer apps merlin for risk and for cleaning aria esme and net zero are all interconnected via our hark connected workplace to the iot platform and are producing real-time data In the upper right, the output from our core systems and apps feeds our leading enterprise insight platform, Mosaic 360, developed on Microsoft Fabric and integrating all the operational data across all our intelligence solutions. in the upper right the output from our core systems and apps feeds our leading enterprise insight platform mosaic 360 developed on microsoft fabric and integrating all the operational data across all our intelligence solutions Mosaic 360 provides comprehensive operational and strategic insights into the daily operations of the built environment of our clients. mosaic 360 provides comprehensive operational and strategic insights into the daily operations of the built environment of our clients Finally, bottom right, as it were, our task mining from ScanAI has led to a growing number of AI bots or agents, enabling smarter, faster, more consistent ways of delivering tasks. finally bottom right as it were our task mining from scanai has led to a growing number of ai bots or agents enabling smarter faster more consistent ways of delivering tasks The real game changer, since we launched our three-year plan, is the power of Agentic AI and Agentic Mesh, using the Microsoft Copilot Studio platform to connect and orchestrate our AI agents to deliver a single pane of glass in the MITIEverse Command Centre. In technical services, we're orchestrating those AI agents which deal with our clients, those that execute work orders, those that interact with the supply chain, develop lifecycle upgrades, close out jobs in the cafe. When completed, this agentic mesh will provide that single pane of glass for workflow management. In the MITIEverse Command Centre in business services, a single pane of glass for workforce management will mesh all our recruiting, vetting, onboarding, training, deploying, payroll AI agents, with outputs from the supervisor layer highlighting productivity anomalies, best-in-class performance. The real game changer, since we launched our three-year plan, is the power of Agentic AI and Agentic Mesh, using the Microsoft Copilot Studio platform to connect and orchestrate our AI agents to deliver a single pane of glass in the MITIEverse Command Centre. the real game changer since we launched our three-year plan is the power of agentic ai and agentic mesh using the microsoft copilot studio platform to connect and orchestrate our ai agents to deliver a single pane of glass in the mitieverse command centre In technical services, we're orchestrating those AI agents which deal with our clients, those that execute work orders, those that interact with the supply chain, develop lifecycle upgrades, close out jobs in the cafe. in technical services we're orchestrating those ai agents which deal with our clients those that execute work orders those that interact with the supply chain develop lifecycle upgrades close out jobs in the cafe When completed, this agentic mesh will provide that single pane of glass for workflow management. when completed this agentic mesh will provide that single pane of glass for workflow management In the MITIEverse Command Centre in business services, a single pane of glass for workforce management will mesh all our recruiting, vetting, onboarding, training, deploying, payroll AI agents, with outputs from the supervisor layer highlighting productivity anomalies, best-in-class performance. in the mitieverse command centre in business services a single pane of glass for workforce management will mesh all our recruiting vetting onboarding training deploying payroll ai agents with outputs from the supervisor layer highlighting productivity anomalies best-in-class performance The final output from the MITIEverse Command Centre will be a large language model answering questions such as, how does my building running costs compare to others? Or what's the optimum way of reducing costs by 10%? These are the questions that today, although we have much of the data, we simply did not have the processing power to answer. With the MITIEverse digital twin of the built environment, we will be able to provide better service, greater insights to our clients, and also at a lower cost. My expectation is that we will have completed our agentic mesh by summer 2026. If you need a bit of a lie down after that, let me wrap up. We have had a strong first half in FY 2026 with double-digit revenue growth and good profit growth. Contract wins and renewals are at record levels, as is our order book and bidding pipeline. The final output from the MITIEverse Command Centre will be a large language model answering questions such as, how does my building running costs compare to others? the final output from the mitieverse command centre will be a large language model answering questions such as how does my building running costs compare to others Or what's the optimum way of reducing costs by 10%? or what's the optimum way of reducing costs by 10% These are the questions that today, although we have much of the data, we simply did not have the processing power to answer. these are the questions that today although we have much of the data we simply did not have the processing power to answer With the MITIEverse digital twin of the built environment, we will be able to provide better service, greater insights to our clients, and also at a lower cost. with the mitieverse digital twin of the built environment, we will be able to provide better service greater insights to our clients and also at a lower cost My expectation is that we will have completed our agentic mesh by summer 2026. my expectation is that we will have completed our agentic mesh by summer 2026 If you need a bit of a lie down after that, let me wrap up. We have had a strong first half in FY 2026 with double-digit revenue growth and good profit growth. if you need a bit of a lie down after that let me wrap up. we have had a strong first half in fy 2026 with double-digit revenue growth and good profit growth Contract wins and renewals are at record levels, as is our order book and bidding pipeline. contract wins and renewals are at record levels as is our order book and bidding pipeline Cash generation is good, and it shows we can undertake value-creating acquisitions and deliver shareholder value from buybacks. It's not either/or at Mitie. FY 2026, profit will be at least GBP 260 million, and the Marlowe acquisition is progressing well. AI efficiencies will underpin our 5% margin aspiration. With 18 months to go, we're on track to not only deliver our stretching FY 2027 targets, but with our growing momentum, we're confident our strategy will carry us into FY 2028. With that, let me now turn over to Q&A. Thank you. We need some mics. We've got DeMola. We've got Miri. Alex. Cash generation is good, and it shows we can undertake value-creating acquisitions and deliver shareholder value from buybacks. cash generation is good and it shows we can undertake value-creating acquisitions and deliver shareholder value from buybacks It's not either/or at Mitie. it's not either/or at mitie FY 2026, profit will be at least GBP 260 million, and the Marlowe acquisition is progressing well. fy 2026 profit will be at least gbp 260 million and the marlowe acquisition is progressing well AI efficiencies will underpin our 5% margin aspiration. ai efficiencies will underpin our 5% margin aspiration With 18 months to go, we're on track to not only deliver our stretching FY 2027 targets, but with our growing momentum, we're confident our strategy will carry us into FY 2028. with 18 months to go we're on track to not only deliver our stretching fy 2027 targets but with our growing momentum we're confident our strategy will carry us into fy 2028 With that, let me now turn over to Q&A. with that let me now turn over to q&a Thank you. thank you We need some mics. we need some mics We've got DeMola. we've got demola We've got Miri. we've got miri Alex. alex

Speaker 1: Morning, guys. Alex Smith from Berenberg. Just two quick questions for me. First one on the projects division, the turbocharging. I guess the sizes of the projects have grown. Can you highlight any key areas of focus? And are you happy with the risk profile of those projects? Morning, guys. morning guys Alex Smith from Berenberg. alex smith from berenberg Just two quick questions for me. just two quick questions for me First one on the projects division, the turbocharging. first one on the projects division the turbocharging I guess the sizes of the projects have grown. i guess the sizes of the projects have grown Can you highlight any key areas of focus? can you highlight any key areas of focus And are you happy with the risk profile of those projects? and are you happy with the risk profile of those projects Number two, sorry, it's just on the growth in the pipeline. Immigration and justice seems to keep growing there. I guess kind of prison renewals and your entrance into that division, if you could provide some color on that, that'd be great. Number two, sorry, it's just on the growth in the pipeline. number two sorry it's just on the growth in the pipeline Immigration and justice seems to keep growing there. immigration and justice seems to keep growing there I guess kind of prison renewals and your entrance into that division, if you could provide some color on that, that'd be great. i guess kind of prison renewals and your entrance into that division if you could provide some color on that that'd be great

Speaker 7: What I'll do is ask Mark Caskey, who runs our projects business. I think this year we should end close to GBP 1.5 billion. We've set a target of two over the next couple of years. That's ahead of where we indicated before. Mark, why don't you just give a bit of color? We had a board meeting here earlier in the week signing off some quite big projects in big opportunities in projects. Why don't you talk a little bit about that? What I'll do is ask Mark Caskey, who runs our projects business. what i'll do is ask mark caskey who runs our projects business I think this year we should end close to GBP 1.5 billion. i think this year we should end close to gbp 1.5 billion We've set a target of two over the next couple of years. we've set a target of two over the next couple of years That's ahead of where we indicated before. that's ahead of where we indicated before Mark, why don't you just give a bit of color? mark why don't you just give a bit of color We had a board meeting here earlier in the week signing off some quite big projects in big opportunities in projects. we had a board meeting here earlier in the week signing off some quite big projects in big opportunities in projects Why don't you talk a little bit about that? why don't you talk a little bit about that

Speaker 5: Sure. Happy to, Phil. Thank you. Where do we see the biggest opportunities going? Sure. sure Happy to, Phil. happy to phil Thank you. thank you Where do we see the biggest opportunities going? where do we see the biggest opportunities going If you go back to the slide, Phil talked about a pipeline greater than GBP 7 billion, which is more than double up from where we were this time last year. The growth is really coming from three areas. Firstly, being data centers. Secondly, being in the power and grid space. You think of everything around buildings need connections to the power systems. You have battery storage and renewable projects that are underway. Lastly, there is a significant amount of momentum in the marketplace at the moment around retrofitting the built environment. If you think about our, a lot of our project work sits on top of our FM clients, and we dedicate project managers to those FM clients. That is where we are seeing the natural uptake. The risk profile, we are, I mean, very rigorous around from a contracting perspective. If you go back to the slide, Phil talked about a pipeline greater than GBP 7 billion, which is more than double up from where we were this time last year. if you go back to the slide phil talked about a pipeline greater than gbp 7 billion which is more than double up from where we were this time last year The growth is really coming from three areas. the growth is really coming from three areas Firstly, being data centers. firstly being data centers Secondly, being in the power and grid space. secondly being in the power and grid space You think of everything around buildings need connections to the power systems. you think of everything around buildings need connections to the power systems You have battery storage and renewable projects that are underway. you have battery storage and renewable projects that are underway Lastly, there is a significant amount of momentum in the marketplace at the moment around retrofitting the built environment. lastly there is a significant amount of momentum in the marketplace at the moment around retrofitting the built environment If you think about our, a lot of our project work sits on top of our FM clients, and we dedicate project managers to those FM clients. That is where we are seeing the natural uptake. if you think about our a lot of our project work sits on top of our fm clients and we dedicate project managers to those fm clients. that is where we are seeing the natural uptake The risk profile, we are, I mean, very rigorous around from a contracting perspective. the risk profile we are i mean very rigorous around from a contracting perspective We've invested in our commercial function as well. So we're really sort of like on the ball when it comes to margin profiles. A lot of our projects are short cycles. Even if we are doing larger projects, they're often broken down into numerous phases. We can control the price risk, the delivery risk, and the scheduling to manage against ultimately our client expectations. We've invested in our commercial function as well. we've invested in our commercial function as well So we're really sort of like on the ball when it comes to margin profiles. so we're really sort of like on the ball when it comes to margin profiles A lot of our projects are short cycles. a lot of our projects are short cycles Even if we are doing larger projects, they're often broken down into numerous phases. even if we are doing larger projects they're often broken down into numerous phases We can control the price risk, the delivery risk, and the scheduling to manage against ultimately our client expectations. we can control the price risk the delivery risk and the scheduling to manage against ultimately our client expectations

Speaker 1: Just one, thanks, Mark. Just one brief build on that, picking up on Mark's point about the short project life cycles. Phil picked it up on his slide, but you'll see on the turbocharging project slide that the average size of our projects is GBP 270,000. From a risk perspective, the majority of them are relatively small. They turn over relatively quickly. Importantly, 80% of them are with our existing customers. We know the customers. We've got a good relationship. Just one, thanks, Mark. just one thanks mark Just one brief build on that, picking up on Mark's point about the short project life cycles. just one brief build on that picking up on mark's point about the short project life cycles Phil picked it up on his slide, but you'll see on the turbocharging project slide that the average size of our projects is GBP 270,000. phil picked it up on his slide but you'll see on the turbocharging project slide that the average size of our projects is gbp 270,000 From a risk perspective, the majority of them are relatively small. from a risk perspective the majority of them are relatively small They turn over relatively quickly. they turn over relatively quickly Importantly, 80% of them are with our existing customers. importantly 80% of them are with our existing customers We know the customers. we know the customers We've got a good relationship. we've got a good relationship We can therefore negotiate decent commercial terms. We know the estates that we're working on. We can therefore negotiate decent commercial terms. we can therefore negotiate decent commercial terms We know the estates that we're working on. we know the estates that we're working on

Speaker 7: On the prison and immigration, I thought I might bring Jason in. Stand up, Jason. If you look at the camera that way, because Mark, you were sort of off, you were off screen there. Next time, if I ask you back again, come to the front here. Jason runs our business services division, as you know, our largest. As Simon said, we've moved the immigration and justice because there's a security element of immigration and justice, absolutely, in our case. We're already the largest provider of security services in the U.K. We're building a strong position in both immigration and in justice. On the prison and immigration, I thought I might bring Jason in. on the prison and immigration i thought i might bring jason in Stand up, Jason. stand up jason If you look at the camera that way, because Mark, you were sort of off, you were off screen there. if you look at the camera that way because mark you were sort of off you were off screen there Next time, if I ask you back again, come to the front here. next time if i ask you back again come to the front here Jason runs our business services division, as you know, our largest. jason runs our business services division as you know our largest As Simon said, we've moved the immigration and justice because there's a security element of immigration and justice, absolutely, in our case. as simon said we've moved the immigration and justice because there's a security element of immigration and justice absolutely in our case We're already the largest provider of security services in the U.K. we're already the largest provider of security services in the u.k We're building a strong position in both immigration and in justice. we're building a strong position in both immigration and in justice

Speaker 6: Yes, thanks, Phil. Yes, thanks, Phil. yes thanks phil Look, the increased pipeline has been driven by, first of all, the announcements of the significant investments being made into the prison infrastructure, driven by the aging infrastructure currently in place and new prison places required. I think we have acquired leading capabilities in Mitie over the last two, three years, and that's resulted in us being successful with Millsike, the U.K.'s first all-electric prison, where we successfully mobilize that prison and are in the process of ramping up to full capacity. I was there yesterday and incredibly impressed by the standards that the Mitie people are delivering. It puts us in a good position, gives us a good foundation for future growth as more new prisons are getting built and more prison places are coming available. From an immigration point of view, we've all seen the increase in immigration centers. Look, the increased pipeline has been driven by, first of all, the announcements of the significant investments being made into the prison infrastructure, driven by the aging infrastructure currently in place and new prison places required. look the increased pipeline has been driven by first of all the announcements of the significant investments being made into the prison infrastructure driven by the aging infrastructure currently in place and new prison places required I think we have acquired leading capabilities in Mitie over the last two, three years, and that's resulted in us being successful with Millsike, the U.K.'s first all-electric prison, where we successfully mobilize that prison and are in the process of ramping up to full capacity. i think we have acquired leading capabilities in mitie over the last two three years and that's resulted in us being successful with millsike the u.k.'s first all-electric prison where we successfully mobilize that prison and are in the process of ramping up to full capacity I was there yesterday and incredibly impressed by the standards that the Mitie people are delivering. i was there yesterday and incredibly impressed by the standards that the mitie people are delivering It puts us in a good position, gives us a good foundation for future growth as more new prisons are getting built and more prison places are coming available. it puts us in a good position gives us a good foundation for future growth as more new prisons are getting built and more prison places are coming available From an immigration point of view, we've all seen the increase in immigration centers. from an immigration point of view we've all seen the increase in immigration centers We currently mobilize in our latest immigration centre at Campsfield, and there are more new immigration centres being opened. The third point is around the investments being made in the prison and probation estate, which is a significantly aging infrastructure and is a current live contract in flight to upgrade all of those services. Three real key areas of interest for us with good capability and good opportunity for growth. We currently mobilize in our latest immigration centre at Campsfield, and there are more new immigration centres being opened. we currently mobilize in our latest immigration centre at campsfield and there are more new immigration centres being opened The third point is around the investments being made in the prison and probation estate, which is a significantly aging infrastructure and is a current live contract in flight to upgrade all of those services. the third point is around the investments being made in the prison and probation estate which is a significantly aging infrastructure and is a current live contract in flight to upgrade all of those services Three real key areas of interest for us with good capability and good opportunity for growth. three real key areas of interest for us with good capability and good opportunity for growth

Speaker 7: I mean, just to take a little bit more on that, as you saw on slide 17, I mean, the pipeline, as you touched on, I've got where the question came from now, from Alex, GBP 8 billion. I think it's fair to say we've got a couple of quite big ones in the BAFO stage at the moment. We will not say any more at this point. We do not want to jinx it. I mean, just to take a little bit more on that, as you saw on slide 17, I mean, the pipeline, as you touched on, I've got where the question came from now, from Alex, GBP 8 billion. i mean just to take a little bit more on that as you saw on slide 17 i mean the pipeline as you touched on i've got where the question came from now from alex, gbp 8 billion I think it's fair to say we've got a couple of quite big ones in the BAFO stage at the moment. i think it's fair to say we've got a couple of quite big ones in the bafo stage at the moment We will not say any more at this point. we will not say any more at this point We do not want to jinx it. we do not want to jinx it There are some big jobs coming down the track. There are some big jobs coming down the track. there are some big jobs coming down the track

Speaker 2: We should also say that whilst there is some concentration in immigration and justice and defence, actually, that growth in the pipeline that we've seen come through is spread across a number of sectors. Yes, immigration and defence, but also healthcare, transport, and aviation. We've also seen some fairly chunky increases. We should also say that whilst there is some concentration in immigration and justice and defence, actually, that growth in the pipeline that we've seen come through is spread across a number of sectors. we should also say that whilst there is some concentration in immigration and justice and defence actually that growth in the pipeline that we've seen come through is spread across a number of sectors Yes, immigration and defence, but also healthcare, transport, and aviation. yes immigration and defence but also healthcare transport and aviation We've also seen some fairly chunky increases. we've also seen some fairly chunky increases

Speaker 7: Sam. Sam. sam Hi, guys. Sandra from Stifel. Two questions from me, please. Firstly, on the strategic client directors, can you just remind us how they're incentivized and how you're sort of educating them about the Marlowe proposition? Secondly, on facilities compliance, having covered Marlowe, AMP8 and the water opportunity there is not something they particularly touched on. Hi, guys. hi guys Sandra from Stifel. sandra from stifel Two questions from me, please. two questions from me please Firstly, on the strategic client directors, can you just remind us how they're incentivized and how you're sort of educating them about the Marlowe proposition? firstly on the strategic client directors can you just remind us how they're incentivized and how you're sort of educating them about the marlowe proposition Secondly, on facilities compliance, having covered Marlowe, AMP8 and the water opportunity there is not something they particularly touched on. secondly on facilities compliance having covered marlowe amp8 and the water opportunity there is not something they particularly touched on I'd be interested to sort of get a sense of the opportunity you see now they're part of the bigger group and sort of what is going to be the typical AMP8 contracts you're sort of going to look to win. Thank you. I'd be interested to sort of get a sense of the opportunity you see now they're part of the bigger group and sort of what is going to be the typical AMP8 contracts you're sort of going to look to win. i'd be interested to sort of get a sense of the opportunity you see now they're part of the bigger group and sort of what is going to be the typical amp8 contracts you're sort of going to look to win Thank you. thank you Yeah. I mean, Mark, I might get you back to the front here with a mic if you come to the front whilst I set you up on the SCDs. I'll answer the facilities compliance point first because the SCDs, we used to call them SAM, Sam, strategic account management, but we want them to be much more strategic in business building. I think it's fair to say we've had people who are good operationally, but not necessarily people who are good on the client, really understanding the client's breadth of the share of wallet. Yeah. yeah I mean, Mark, I might get you back to the front here with a mic if you come to the front whilst I set you up on the SCDs. i mean mark i might get you back to the front here with a mic if you come to the front whilst i set you up on the scds I'll answer the facilities compliance point first because the SCDs, we used to call them SAM, Sam, strategic account management, but we want them to be much more strategic in business building. i'll answer the facilities compliance point first because the scds we used to call them sam sam strategic account management but we want them to be much more strategic in business building I think it's fair to say we've had people who are good operationally, but not necessarily people who are good on the client, really understanding the client's breadth of the share of wallet. i think it's fair to say we've had people who are good operationally but not necessarily people who are good on the client really understanding the client's breadth of the share of wallet That is where Kevin Tyrrell, our Sales Director, has been working hard on growing that out. In terms of incentives, I mean, we've talked about some of the people we've got, and then we know how they're incentivized. It's going to be on the growth of the business of the client and specific to their account in terms of profit, revenue, net promoter score, and employee engagement. I'll just say a little bit more about that. That is where Kevin Tyrrell, our Sales Director, has been working hard on growing that out. that is where kevin tyrrell our sales director has been working hard on growing that out In terms of incentives, I mean, we've talked about some of the people we've got, and then we know how they're incentivized. in terms of incentives i mean we've talked about some of the people we've got and then we know how they're incentivized It's going to be on the growth of the business of the client and specific to their account in terms of profit, revenue, net promoter score, and employee engagement. it's going to be on the growth of the business of the client and specific to their account in terms of profit revenue net promoter score and employee engagement I'll just say a little bit more about that. i'll just say a little bit more about that

Speaker 5: I'm happy to. If you think in terms of our SCDs, we've identified our top 50 accounts. Part of their role and what we're supporting them with is bringing the best of everything of Mitie to the benefit of those clients, whether it's in hard services and engineering or soft services and/or projects. I'm happy to. i'm happy to If you think in terms of our SCDs, we've identified our top 50 accounts. if you think in terms of our scds we've identified our top 50 accounts Part of their role and what we're supporting them with is bringing the best of everything of Mitie to the benefit of those clients, whether it's in hard services and engineering or soft services and/or projects. part of their role and what we're supporting them with is bringing the best of everything of mitie to the benefit of those clients whether it's in hard services and engineering or soft services and/or projects What we've recognized as well is we're investing in our sales community or business development community to give them, let's say, the access to the resources to help them support our clients in terms of some of those conversations. Another area we're investing is our consulting capability. Again, whether it's workplace, facilities management, energy, and sustainability consultants, we've got over 300 of them in the business, and we're allocating them to the SCDs to be able to have a different order of conversation with our clients to really bring the full value of Mitie to solving their business challenges and improving the value they get from their property portfolio. As Phil said, on the incentives, we reward them for growth. We reward them for the full P&L stack that sits underneath their client responsibility. What we've recognized as well is we're investing in our sales community or business development community to give them, let's say, the access to the resources to help them support our clients in terms of some of those conversations. what we've recognized as well is we're investing in our sales community or business development community to give them let's say the access to the resources to help them support our clients in terms of some of those conversations Another area we're investing is our consulting capability. another area we're investing is our consulting capability Again, whether it's workplace, facilities management, energy, and sustainability consultants, we've got over 300 of them in the business, and we're allocating them to the SCDs to be able to have a different order of conversation with our clients to really bring the full value of Mitie to solving their business challenges and improving the value they get from their property portfolio. again whether it's workplace facilities management energy and sustainability consultants we've got over 300 of them in the business and we're allocating them to the scds to be able to have a different order of conversation with our clients to really bring the full value of mitie to solving their business challenges and improving the value they get from their property portfolio As Phil said, on the incentives, we reward them for growth. as phil said on the incentives we reward them for growth We reward them for the full P&L stack that sits underneath their client responsibility. we reward them for the full p&l stack that sits underneath their client responsibility

Speaker 7: On the pipeline, I could show you that, Sam, but you won't be able to see it. This is our top 30 opportunities from the Marlowe opportunity. The first one, I'm not going to tell you who it is, is GBP 47 million, the largest. The point I would make as well is that we have not yet scrubbed the pipeline and the order book for Marlowe. There is nothing in there at the moment in the numbers. We'd expect to have done so when we've got it all in the CRM system, Kevin, and we've actually qualified these opportunities. I deliberately said, the point I made that Marlowe were not public sector bidders. They ended up doing some work in hospitals, but that's because CBRE gave them the job and it was public sector, but they hadn't contracted directly with public sector. On the pipeline, I could show you that, Sam, but you won't be able to see it. on the pipeline i could show you that sam but you won't be able to see it This is our top 30 opportunities from the Marlowe opportunity. this is our top 30 opportunities from the marlowe opportunity The first one, I'm not going to tell you who it is, is GBP 47 million, the largest. the first one i'm not going to tell you who it is is gbp 47 million the largest The point I would make as well is that we have not yet scrubbed the pipeline and the order book for Marlowe. the point i would make as well is that we have not yet scrubbed the pipeline and the order book for marlowe There is nothing in there at the moment in the numbers. there is nothing in there at the moment in the numbers We'd expect to have done so when we've got it all in the CRM system, Kevin, and we've actually qualified these opportunities. we'd expect to have done so when we've got it all in the crm system kevin and we've actually qualified these opportunities I deliberately said, the point I made that Marlowe were not public sector bidders. i deliberately said the point i made that marlowe were not public sector bidders They ended up doing some work in hospitals, but that's because CBRE gave them the job and it was public sector, but they hadn't contracted directly with public sector. they ended up doing some work in hospitals but that's because cbre gave them the job and it was public sector but they hadn't contracted directly with public sector We opened up that completely now, and there's some big bids already in play where we've made bids. We're waiting for answers. We'd hope to announce those quite soon. The opportunity is probably bigger than I expected. Once we've scrubbed it, and actually, this is where we need to pivot Marlowe away from, I've euphemistically used this phrase before, fire extinguishers in scout huts, and get into proper B2B. That's where the prize is. That's why we bought the business. We're quite excited about what it could look like. Tom, yeah. That was it, Tom? Yeah. Yeah. I've got yours. Better than mine. We opened up that completely now, and there's some big bids already in play where we've made bids. we opened up that completely now and there's some big bids already in play where we've made bids We're waiting for answers. we're waiting for answers We'd hope to announce those quite soon. we'd hope to announce those quite soon The opportunity is probably bigger than I expected. the opportunity is probably bigger than i expected Once we've scrubbed it, and actually, this is where we need to pivot Marlowe away from, I've euphemistically used this phrase before, fire extinguishers in scout huts, and get into proper B2B. once we've scrubbed it and actually this is where we need to pivot marlowe away from i've euphemistically used this phrase before fire extinguishers in scout huts and get into proper b2b That's where the prize is. that's where the prize is That's why we bought the business. that's why we bought the business We're quite excited about what it could look like. we're quite excited about what it could look like Tom, yeah. tom yeah That was it, Tom? that was it tom Yeah. yeah Yeah. yeah I've got yours. i've got yours Better than mine. better than mine

Speaker 3: Morning, chaps. Tom Callan from Investec. I've also got two. Just one on that GBP 2 billion pipeline that's BAFO. Can you just remind us in terms of the typical conversion of pipeline to order book and also typical contract length? Morning, chaps. morning chaps Tom Callan from Investec. tom callan from investec I've also got two. i've also got two Just one on that GBP 2 billion pipeline that's BAFO. just one on that gbp 2 billion pipeline that's bafo Can you just remind us in terms of the typical conversion of pipeline to order book and also typical contract length? can you just remind us in terms of the typical conversion of pipeline to order book and also typical contract length Just trying to get a sense as what might be the best. Yeah. I might bring you in on that as well. The back there. I know you like hiding at the back. But our win rate on there's two types of wins. There's wins around there's retention, and we give you that number, and it's running at 80%. It's quite volatile in terms of if you lost a big contract in a short period of time. Then we've got wins on cold calls and wins on projects as well and the rates of those. Kevin's been our sales director now for about 18 months, and we've got a lot more analysis now. Is it 18 months or 12 months? I can't remember. Just trying to get a sense as what might be the best. just trying to get a sense as what might be the best Yeah. yeah i I might bring you in on that as well. i might bring you in on that as well The back there. the back there I know you like hiding at the back. i know you like hiding at the back But our win rate on there's two types of wins. but our win rate on there's two types of wins There's wins around there's retention, and we give you that number, and it's running at 80%. there's wins around there's retention and we give you that number and it's running at 80% It's quite volatile in terms of if you lost a big contract in a short period of time. it's quite volatile in terms of if you lost a big contract in a short period of time Then we've got wins on cold calls and wins on projects as well and the rates of those. then we've got wins on cold calls and wins on projects as well and the rates of those Kevin's been our sales director now for about 18 months, and we've got a lot more analysis now. kevin's been our sales director now for about 18 months and we've got a lot more analysis now Is it 18 months or 12 months? is it 18 months or 12 months I can't remember. i can't remember

Speaker 9: 18 months. 18 months. Yeah. So conversion rate, we look at two different numbers. One of them is conversion rate of pipeline. 18 months. 18 months. 18 months 18 months Yeah. yeah So conversion rate, we look at two different numbers. so conversion rate we look at two different numbers One of them is conversion rate of pipeline. one of them is conversion rate of pipeline The other one is conversion rate of tender win rate. Our tender win rate is things which come to market, we're actively bidding on, and our win rates have gone up into the low to mid-60% in the past 12 months. Our pipeline conversion rate is sitting about 27%. It depends whether that pipeline converts into a tender, we bid on the tender, win rates are going up in that area. The other one is conversion rate of tender win rate. the other one is conversion rate of tender win rate Our tender win rate is things which come to market, we're actively bidding on, and our win rates have gone up into the low to mid-60% in the past 12 months. our tender win rate is things which come to market we're actively bidding on and our win rates have gone up into the low to mid-60% in the past 12 months Our pipeline conversion rate is sitting about 27%. our pipeline conversion rate is sitting about 27% It depends whether that pipeline converts into a tender, we bid on the tender, win rates are going up in that area. it depends whether that pipeline converts into a tender we bid on the tender win rates are going up in that area

Speaker 7: I think it's a double-edged sword for us because we try and take all our private sector clients away from a tender process in what we would call an off-market deal. That's exactly what our clients do to us. I mean, we went for BT, but it stayed with the incumbent. I think it's a double-edged sword for us because we try and take all our private sector clients away from a tender process in what we would call an off-market deal. i think it's a double-edged sword for us because we try and take all our private sector clients away from a tender process in what we would call an off-market deal That's exactly what our clients do to us. that's exactly what our clients do to us I mean, we went for BT, but it stayed with the incumbent. i mean we went for bt but it stayed with the incumbent The number of in tech services, a number of clients that were in the pipeline never came to market because they rolled it with the incumbent. It is why, but in public sector, you cannot do that. You cannot just do a quiet deal. It is why there is more volatility in public sector because that is a straight shootout on a tender process. That is why not all of that pipeline ever comes to us. That is why there is a predominance in the pipeline of government because we know that is definitely going to come out. We might hope NatWest comes out next year, which we do, but we do not know if it will ever see the light of day. Okay, there is another one. James. How are you sleeping, James? Did not your wife have another baby? The number of in tech services, a number of clients that were in the pipeline never came to market because they rolled it with the incumbent. the number of in tech services a number of clients that were in the pipeline never came to market because they rolled it with the incumbent It is why, but in public sector, you cannot do that. it is why but in public sector you cannot do that You cannot just do a quiet deal. you cannot just do a quiet deal It is why there is more volatility in public sector because that is a straight shootout on a tender process. it is why there is more volatility in public sector because that is a straight shootout on a tender process That is why not all of that pipeline ever comes to us. that is why not all of that pipeline ever comes to us That is why there is a predominance in the pipeline of government because we know that is definitely going to come out. that is why there is a predominance in the pipeline of government because we know that is definitely going to come out We might hope NatWest comes out next year, which we do, but we do not know if it will ever see the light of day. we might hope natwest comes out next year which we do but we do not know if it will ever see the light of day Okay, there is another one. okay, there is another one James. james How are you sleeping, James? Did not your wife have another baby? how are you sleeping james? did not your wife have another baby

Speaker 10: Still on the first one. Still on the first one. still on the first one

Speaker 7: All right. All right. all right

Speaker 10: But not sleeping. Thanks. But not sleeping. but not sleeping Thanks. thanks James Beard at Deutsche Numis. Yeah, I've got three questions, please. Firstly, going back to the projects business and the projected growth to GBP 2 billion revenues there. How much of that is driven by expected growth in average ticket value versus just growth in the number of tickets that you're generating in that business going forward? Second question is on Marlowe. Can you just talk through what is happening with the existing customer base there, whether you are retaining or seeing any sort of degree of retrenchment within that existing customer base? Thirdly, on the telecoms business, noted the GBP 10 million profit swing in the first half, what is your expectation on the second half for that? James Beard at Deutsche Numis. james beard at deutsche numis Yeah, I've got three questions, please. yeah i've got three questions please Firstly, going back to the projects business and the projected growth to GBP 2 billion revenues there. firstly going back to the projects business and the projected growth to gbp 2 billion revenues there How much of that is driven by expected growth in average ticket value versus just growth in the number of tickets that you're generating in that business going forward? how much of that is driven by expected growth in average ticket value versus just growth in the number of tickets that you're generating in that business going forward Second question is on Marlowe. second question is on marlowe Can you just talk through what is happening with the existing customer base there, whether you are retaining or seeing any sort of degree of retrenchment within that existing customer base? can you just talk through what is happening with the existing customer base there whether you are retaining or seeing any sort of degree of retrenchment within that existing customer base Thirdly, on the telecoms business, noted the GBP 10 million profit swing in the first half, what is your expectation on the second half for that? thirdly on the telecoms business noted the gbp 10 million profit swing in the first half what is your expectation on the second half for that

Speaker 7: Okay. I'm just in the midst of speeding it up because otherwise we'll be here for a while. I mean, projects, it's a bit of both. Okay. okay I'm just in the midst of speeding it up because otherwise we'll be here for a while. i'm just in the midst of speeding it up because otherwise we'll be here for a while I mean, projects, it's a bit of both. i mean projects it's a bit of both We sell more jobs, but there's some very big jobs out there. If you looked at Longcross, it was a GBP 90 million job at the data center, and that was for only a third of the full potential there. You get a sense of the size of the scale. Longcross, when fully built out, is 90 megs. What's Harlowe? That's a lot bigger. We sell more jobs, but there's some very big jobs out there. we sell more jobs but there's some very big jobs out there If you looked at Longcross, it was a GBP 90 million job at the data center, and that was for only a third of the full potential there. if you looked at longcross it was a gbp 90 million job at the data center and that was for only a third of the full potential there You get a sense of the size of the scale. you get a sense of the size of the scale Longcross, when fully built out, is 90 megs. longcross when fully built out is 90 megs What's Harlowe? what's harlowe That's a lot bigger. that's a lot bigger

Speaker 5: It's 37 megs, but because they're densifying significantly, the amount of MEP you're putting into a data center now is increasing the average project size. It's 37 megs, but because they're densifying significantly, the amount of MEP you're putting into a data center now is increasing the average project size. it's 37 megs but because they're densifying significantly the amount of mep you're putting into a data center now is increasing the average project size

Speaker 7: There's some big stuff there, and you can think about the battery energy storage deal that we announced, Staythorpe. That's GBP 70 million. There's a big pipeline in battery energy storage as well. What was the statistic? Our company that we bought, ironically, out of administration, G2E, has done what, 25% of the UK's battery? There's some big stuff there, and you can think about the battery energy storage deal that we announced, Staythorpe. there's some big stuff there and you can think about the battery energy storage deal that we announced staythorpe That's GBP 70 million. that's gbp 70 million There's a big pipeline in battery energy storage as well. there's a big pipeline in battery energy storage as well What was the statistic? what was the statistic Our company that we bought, ironically, out of administration, G2E, has done what, 25% of the UK's battery? our company that we bought ironically out of administration g2e has done what 25% of the uk's battery

Speaker 5: The battery storage capability in the U.K. is about 4.5 GW at the moment. G2 Energy, which is the company that we acquired just over two years ago, have developed over 25% of that capacity in the U.K. They are a really powerful brand when it comes to investors and developers into energy storage and battery storage solutions. The battery storage capability in the U.K. is about 4.5 GW at the moment. the battery storage capability in the u.k is about 4.5 gw at the moment G2 Energy, which is the company that we acquired just over two years ago, have developed over 25% of that capacity in the U.K. g2 energy which is the company that we acquired just over two years ago have developed over 25% of that capacity in the u.k They are a really powerful brand when it comes to investors and developers into energy storage and battery storage solutions. they are a really powerful brand when it comes to investors and developers into energy storage and battery storage solutions

Speaker 7: Marlowe, look, it happens every time. Every time we buy a business, if they do any work with a couple of our sworn enemies, they cancel it straight away. Marlowe had a bit of that, but it is not material. For every bit of business that a competitor has taken away from us, we have work that we were doing with third parties that we can now give Marlowe. Marlowe, look, it happens every time. marlowe look it happens every time Every time we buy a business, if they do any work with a couple of our sworn enemies, they cancel it straight away. every time we buy a business if they do any work with a couple of our sworn enemies they cancel it straight away Marlowe had a bit of that, but it is not material. marlowe had a bit of that but it is not material For every bit of business that a competitor has taken away from us, we have work that we were doing with third parties that we can now give Marlowe. for every bit of business that a competitor has taken away from us we have work that we were doing with third parties that we can now give marlowe You're not going to see, it's not going to, you're not going to see a big change in that number for now. On Telco, you're going, You're not going to see, it's not going to, you're not going to see a big change in that number for now. you're not going to see it's not going to you're not going to see a big change in that number for now On Telco, you're going, on telco you're going

Speaker 2: Yeah, just briefly on Telco. You recall that we already initiated our turnaround plan on Telco, which was starting to have a positive effect in the second half of last year. Therefore, we won't see a big delta half on half this year versus last year in the second half. Yeah, just briefly on Telco. yeah just briefly on telco You recall that we already initiated our turnaround plan on Telco, which was starting to have a positive effect in the second half of last year. you recall that we already initiated our turnaround plan on telco which was starting to have a positive effect in the second half of last year Therefore, we won't see a big delta half on half this year versus last year in the second half. therefore we won't see a big delta half on half this year versus last year in the second half

Speaker 7: It's growth that we needed. One of the reasons why we pulled back, we shed work that we were losing money on, essentially. What we've got to do is try and rebuild from a profitable level. We've taken the revenue down by 40%. Chris. It's growth that we needed. it's growth that we needed One of the reasons why we pulled back, we shed work that we were losing money on, essentially. one of the reasons why we pulled back we shed work that we were losing money on essentially What we've got to do is try and rebuild from a profitable level. what we've got to do is try and rebuild from a profitable level We've taken the revenue down by 40%. we've taken the revenue down by 40% Chris. chris

Speaker 8: Good morning. Chris Bamberry, Peel Hunt. A couple of questions. You've also had a very successful period in terms of contract awards. Good morning. good morning Chris Bamberry, Peel Hunt. chris bamberry peel hunt A couple of questions. a couple of questions You've also had a very successful period in terms of contract awards. you've also had a very successful period in terms of contract awards How much would you put down that to what you've been doing over the past few years? Perhaps what's been changing in terms of customer behavior? On slide 20, identified GBP 0.5 billion of opportunities with 10 contracts. Just trying to get an idea of the kind of scale of uplift there. I mean, what was the revenues on those contracts? How much would you put down that to what you've been doing over the past few years? how much would you put down that to what you've been doing over the past few years Perhaps what's been changing in terms of customer behavior? perhaps what's been changing in terms of customer behavior On slide 20, identified GBP 0.5 billion of opportunities with 10 contracts. on slide 20 identified gbp 0.5 billion of opportunities with 10 contracts Just trying to get an idea of the kind of scale of uplift there. just trying to get an idea of the kind of scale of uplift there I mean, what was the revenues on those contracts? i mean what was the revenues on those contracts

Speaker 7: Do you have that, Kev, on the 10? I don't know if I have that. We may have to come back to you if we haven't got it. The 10, we don't have the revenue. Not the top. Not the top of my head. We'll come back to you on that. It's a fair question. As a percentage of uplift. Do you have that, Kev, on the 10? do you have that kev on the 10 I don't know if I have that. i don't know if i have that We may have to come back to you if we haven't got it. we may have to come back to you if we haven't got it The 10, we don't have the revenue. the 10 we don't have the revenue Not the top. not the top not Not the top of my head. the top not the top of my head We'll come back to you on that. we'll come back to you on that It's a fair question. it's a fair question As a percentage of uplift. as a percentage of uplift Just, I mean, the quick way of doing it a different way is our top 25 clients generate 25% of our revenue, and our top 50 generate 50. Is that right? Just, I mean, the quick way of doing it a different way is our top 25 clients generate 25% of our revenue, and our top 50 generate 50. just i mean the quick way of doing it a different way is our top 25 clients generate 25% of our revenue and our top 50 generate 50 Is that right? is that right

Speaker 2: It's a bit more than that, actually. Yeah. Top 25 are closer to 40, actually. And the top 50 are just over 50. It's quite a concentration in that top 25. Given that we're taking the 10 largest there, we'll flesh it out. It's a bit more than that, actually. it's a bit more than that actually Yeah. yeah Top 25 are closer to 40, actually. top 25 are closer to 40 actually And the top 50 are just over 50. and the top 50 are just over 50 It's quite a concentration in that top 25. it's quite a concentration in that top 25 Given that we're taking the 10 largest there, we'll flesh it out. given that we're taking the 10 largest there we'll flesh it out

Speaker 7: Yeah, we'll flesh that one out. I forgot the second question. What was it? What was the second question? Yeah, we'll flesh that one out. yeah we'll flesh that one out I forgot the second question. i forgot the second question What was it? what was it What was the second question? what was the second question

Speaker 2: What was the other question, Chris? What was the other question, Chris? what was the other question chris

Speaker 8: Yeah. You seem successful within contracts. How much did you put down for that? Yeah. yeah You seem successful within contracts. you seem successful within contracts How much did you put down for that? how much did you put down for that

Speaker 7: The question was around winning contracts. It's quite volatile. The question was around winning contracts. the question was around winning contracts It's quite volatile. it's quite volatile I mean, it surprises me in some ways that it keeps going up because it is dependent on the size of some of the deals that are out there, and it drives a weighted average. A government contract, I can think of two government contracts that are GBP 2 billion together, okay, that were at BAFO. That can be volatile. Because it's the public sector win rate, Kevin, it'll probably be a little bit lower than that number you gave. I mean, it surprises me in some ways that it keeps going up because it is dependent on the size of some of the deals that are out there, and it drives a weighted average. i mean it surprises me in some ways that it keeps going up because it is dependent on the size of some of the deals that are out there and it drives a weighted average A government contract, I can think of two government contracts that are GBP 2 billion together, okay, that were at BAFO. a government contract i can think of two government contracts that are gbp 2 billion together okay that were at bafo That can be volatile. that can be volatile Because it's the public sector win rate, Kevin, it'll probably be a little bit lower than that number you gave. because it's the public sector win rate kevin it'll probably be a little bit lower than that number you gave

Speaker 8: It is on your business. I mean, I can just. It is on your business. it is on your business I mean, I can just. i mean i can just

Speaker 9: I guess there's a couple of things for me. I think building capability over the past few years, and we've seen all the capability we've built in our core FM service offering around hygiene, security, and engineering. We continue to build. Continue to build capability around our project capability as well. I guess there's a couple of things for me. i guess there's a couple of things for me I think building capability over the past few years, and we've seen all the capability we've built in our core FM service offering around hygiene, security, and engineering. i think building capability over the past few years and we've seen all the capability we've built in our core fm service offering around hygiene security and engineering We continue to build. we continue to build Continue to build capability around our project capability as well. continue to build capability around our project capability as well Strengthening of relationships on the back of really strong MPS. Strong MPS is the foundation for retention, which gives us the ability to continue to grow. I think you apply good MPS, improving relationships with our clients, which we'll continue to do through the SCD program, and building internal capability, the things which are enabling us to win. Strengthening of relationships on the back of really strong MPS. strengthening of relationships on the back of really strong mps Strong MPS is the foundation for retention, which gives us the ability to continue to grow. strong mps is the foundation for retention which gives us the ability to continue to grow I think you apply good MPS, improving relationships with our clients, which we'll continue to do through the SCD program, and building internal capability, the things which are enabling us to win. i think you apply good mps improving relationships with our clients which we'll continue to do through the scd program and building internal capability the things which are enabling us to win

Speaker 7: That was a much better answer than mine, actually. Because it actually reminds me because we've never had a group head of sales. Now, you may say that's rather shameful and our fault, but we used to leave each business unit running its own stuff, doing its own stuff. In the end, we decided that wasn't a good idea. Eighteen months ago, we brought them all under Kevin. You've replaced quite a few people now. That was a much better answer than mine, actually. that was a much better answer than mine actually Because it actually reminds me because we've never had a group head of sales. because it actually reminds me because we've never had a group head of sales Now, you may say that's rather shameful and our fault, but we used to leave each business unit running its own stuff, doing its own stuff. now you may say that's rather shameful and our fault but we used to leave each business unit running its own stuff doing its own stuff In the end, we decided that wasn't a good idea. in the end we decided that wasn't a good idea Eighteen months ago, we brought them all under Kevin. eighteen months ago we brought them all under kevin You've replaced quite a few people now. you've replaced quite a few people now We do it to a standard way of bidding, standard reviews, all of the data's in this CRM system. We've just become a lot more methodical than we used to be. The value of that hasn't finished playing out yet. We've still got people literally just having joined us less than six months ago who were with a top track record. One thing I'd say, we've not had any difficulty attracting talent into Mitie. Any more? Excellent. Thank you for your support, as always. We'll see you at the drinks in, not, when is it? The 20. We do it to a standard way of bidding, standard reviews, all of the data's in this CRM system. we do it to a standard way of bidding standard reviews all of the data's in this crm system We've just become a lot more methodical than we used to be. we've just become a lot more methodical than we used to be The value of that hasn't finished playing out yet. the value of that hasn't finished playing out yet We've still got people literally just having joined us less than six months ago who were with a top track record. we've still got people literally just having joined us less than six months ago who were with a top track record One thing I'd say, we've not had any difficulty attracting talent into Mitie. one thing i'd say we've not had any difficulty attracting talent into mitie Any more? any more Excellent. excellent Thank you for your support, as always. thank you for your support as always We'll see you at the drinks in, not, when is it? we'll see you at the drinks in not when is it The 20. the 20

Speaker 2: Next week. Next week. next week

Speaker 7: 20 something next week. If you're not invited, go and see Kate. 20 something next week. 20 something next week If you're not invited, go and see Kate. if you're not invited go and see kate

Speaker 2: Thanks, everyone. Thanks, everyone. thanks everyone