The impending tax raid by the government is set to significantly impact British businesses, as demonstrated by facilities management firm Mitie Group's warning of a staggering £50m hit from increases to National Insurance Contributions (NICs).
The London-listed group's latest estimate for the cost of rising NICs is slightly less than a previous forecast of £60m, but it will still considerably dent its profits, as reported by .
Mitie Group has projected operating profits of around £230m in 2025, an increase from £210m the previous year. The outsourcing company has also raised its full-year profit guidance and launched a £125m share buyback programme.
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The firm reported a 13 per cent year-on-year rise in full-year revenue to a record £5.1bn, surpassing previous guidance.
In addition, Mitie Group announced another £125m buyback programme, bringing its total since 2023 to £325m.
The company highlighted that three acquisitions worth approximately £50m had contributed to the robust revenue growth.
Shares have risen about 10 per cent so far this year.
"FY25 was the foundation year of our new three-year-plan improving the strength of the Mitie platform and investing in our capabilities to accelerate facilities transformation for our customers," stated Chief Executive Phil Bentley.
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"These investments contributed to the delivery of good revenue and operating profit growth... Our good underlying cash generation and low leverage has enabled us to sustain a proactive capital deployment policy with our largest share buyback programme now complete and a new £125m programme launched today."
Last year, Mitie Group secured a significant £136m contract to provide security services for the Department for Work and Pensions (DWP).
Bentley highlighted that the company has built up a "record pipeline of opportunities" and is experiencing "good sales momentum" as it steps into the new financial year.