From the Blue Index blog

All-MITIE

May 18th, 2009

Further evidence emerged today of how companies are outsourcing to save money. Building services group MITIE Group (MTO) reported a 12 percent hike in annual pre-tax profits to GBP75.9m, on revenues ahead 8.2 percent to GBP1.5bn. Additionally, MITIEs forward order book increased to GBP4.9bn from GBP4.4bn last time, and the group are benefiting from a sustained level of outsourcing as contracts become larger and longer term. Looking forward, the company also said it is extremely well positioned for acquisitions and buying up companies which fit the existing business.

Analysts are very positive over the results, remarking the results are strong, with high visibility and positive outlook resulting from MITIE clients increasing outsourcing to improve efficiency and to cut costs.

If like me you have tracked the share price performance of companies providing outsourcing during the downturn, such as Compass Group (CPG) and Capita (CPI), youll find that almost without exception, these companies are very positive in outlook, with clear revenue visibilities.

Full transcript here
http://blog.blueindex.co.uk/2009/05/all-mitie/

Does anyone know why the big drop on these

Good spike on these today. Finally breached 200, can it hold? Had a wee punt @ 199 Tgt 120 stop 195.

For a beaten up sector this one seems to be on a mission. Stop moved to 210.4, halfway to target to lock in a good profit before it goes tits up. Interim results 22/11.

Having retraced back down to 200, got back in long on 2nd (SB) @ 201.6, target 120 stop moved to entry today.

And Out 240.0, may regret it but easy enough to get back in. In the meantime Limit sell(SB) left @ 234 initial target 220 stop 242.0

Limit Buy (SB) triggered @ 243.0 Tgt 260.0 Stop 233.0 Trading Statement 28/01

Closed long (for now) SB @ 238.2 - 4.

CC
well done. stand back. (for now)
be patiient. just my opinion.
regards to you
jkd

jkd - Thanks! And regards to you to.

50DMA starting to move up closer to sp. Watching closely.

Long @ 231.5 (SB) Tgt 250.0 tight stop.

Stop to entry for risk free trade.

Got a lousy write up from Shares last week, Divi payout today, down again bang on 200DMA. Can it bounce from here, or is there still some downside to come? I haven't got a scooby doo. Watching closely, thinking about ptholden's comments (posted on CHART ATTACK thread) regarding sp movement after a golden cross where the sp retreats back to MA's before resuming uptrend be interesting to watch. See what happens, no position yet. I will take your advice this time jkd and be patient.

Don't bet the house on it Chris, although significant divergence on the MACD v SP, so looking oversold, but that can change if it continues to fall. With regard to the GC gravitating towards the 200MA the same thing happened in 2009 before going on a run.

Ok, thanks ptholden, no position yet as stated, bang in the middle could go either way, cheers.

Completely forgot about these and missed the rise. Wee punt Limit sell (SB) triggered @ 229.5 Tgt 210.0 stop tight.

Stop to entry for risk free trade.

Full year results due on Wednesday. Highlighted as a possible short on goldfingers 'kipper system' see Chart Attack thread. DYOR

Still watching with interest, held up remarkably well. 12/08 final divi payment followed 3 days later with interim management statement. Left a Limit Buy (spread bet) @ 244.0, initial target 260.0 tight stop. Still have a Limit Sell (rapidly gathering dust now) @ 229.0 initial target 215.0.

Limit Sell (spread bet) triggered. Market sorted that dust out better than Mr Sheen :O)

Stop moved to 224.0 to lock in profits in case bounces off 200DMA or market rebound.

Below 200DMA stop to 220.0

Stopped out + 9.0 Left Limit Sell @ 215 in case this strength in futures is a dead cat. Even if triggered will close prior to close today. Final divi due week today.

Limit Sell triggered this morning @ 215.0, stop to entry for risk free trade. Tgt 201.0

Wee punt long this time @ 204.9 tight stop

And out @ 210.1 +5.2

Back in Long @ 209.0 Interim Monday.

And out (fornow) @ 215.4 + 6.4

Would have been more positive if Fridays close had finished above 200DMA, if that had been the case would probably have left long open. Waiting now to see how the market reacts to Interim results Monday. Obviously I am hoping that results will be good enough to push sp back up to test 52 week high but, that is probably wishful thinking, though probably anything could happen in current market.

Leaving options open - Limit Buy (spread bet ) @ 223.0
Limit Sell (" " " " " " " ) @ 211.0
Will place stops and targets if or when either trade triggered.

Technicals from iii 12/08 Short term bearish = 2-6 weeks, support 200.0, resistance 231.90
Slow stochastic short term bearish 12/08 217.30
MACD Intermediate term bearish 12/08 217.30
Price crosses 200 DMA 10/08 214.20
Long term bearish.

Comments - iii 12/08 analysts expect the group to deliver a solid report which should see yet another year of rising profits.

Motley Fool 12/08 Under Heading Cyclical Bargains :-
Mitie Group (MTO) offering services in facilities, property and assett management. A strong set of results is again expected, we should be seing the sixth year of rising profits and dividends in a row. Recession, what Recession? That's pretty good going for a company with some of its fingers in cyclical pies. This time there is a little more debt, but there's more than twice covered dividend of 4.5% forecast. By heck, we used to dream of well covered 4.5% dividend yields.

Interactive Investor 12/08
Mitie Group (MTO) presents its interim results to investors after quite a ride which has seen its shares shoot back and forth. However analysts expect the group to deliver a solid report which should see yet another year of rising profits.

Limit Buy triggered @ 225.0 Stop 216.0

Stopped out - 9.0. Now short again. Goldman Sachs downgrade today to neutral from Buy. Good support @ 210.0 but wouldn't be surprised to see lower in this market, brilliant trading stock despite for the last six years increasing profit and divis remains stuck in a trading range.

Closed short @ 207.0 +8.0 opened spread bet long Dec contract @205.2

Stop to entry.

Stop to 215.2 to lock in + 10

Tested 230.0 can it crack it.....?

Yup, stop to 220.0

Going for 240.0 now, but this is where it gets dodgy, got every faith cause under valued. Stop to 230.0

Closed half (Dec contract) @ 235.2 + 30
Leaving other half to run, moved stop to 225.0

Stopped out of remainder long (Dec Contract) shock horror for +19.8
Short again (rude not to be) @ 230.0 (rolling), tight stop. Half yearly financial report due 21/11

Stop to entry.

Stopped out at open. Back to watch list for now see how it plays out, pushed my luck enough :O)

Short last week, on the march long so far this week, low volume down day for the market.

Initiated long (SB) from 237.0 initial target 260.0 stop moved to 235.0. Hoping that 240.0 will be support. And obviously looking for a breakout, going to need a lot more volume to become reality, pinning my hopes on the build up to :-


21/11 1H Interims
14/12 Interim ex divi date

Stop to entry for risk free trade.

Steady as she goes, fingers crossed !

Initial target 260.0 hit. Closed half (limit) +23.0
will add on any weakness.

Next target 280.0
240.0 support holding, stop still 237.0

Steady day on low volume.

Excellant trading statement, added to S/Bet @ 239.0.

Closed 2nd half of initial spread bet @256.5 + 19.5

Moved stop on top up to 249.0 to lock in +10

Stopped out at the open. Sitting on sidelines for now re - spreads, 14/12 interim ex divi date. 30/01 Trading Statement.

Powered by IST's

Incredible two weeks for Mitie, wish I could say I was long from 239.0, sadly not, only managed to scalp + 14 on the spreads, oh me of little faith. Long from yesterday @ 259.3. trading statement 30/01, interim divi 06/02. Looking at the chart have to think it's due to pull back but have been saying that for the last two weeks :O) Initial target 280.0

Stop to 265.0 to lock in + 5.7

Moved stop to 250.0, consolidating a wee bit, sticking with it Interim 30/01 interim divi 06/02.

Closed @262.6 +3.3

Merrill Lynch downgrades Mitie group from buy to underperform, target price cut from 260.0 to 255.0 (really sticking there neck out there then :O)

Watching with interest tomorrow 06/02 half yearly dividend paid 4.4p. Will 250.0 or 240.0 act as support, will it tank. Or will a new trading range commence from either of these two levels and finally break out above 280.0 target 300.0 ?

Buy order triggered on the spreads @ 262.0 initial target 270.0 tight stop.

On the move this am, albeit on low volume.

Stop to entry for risk free trade.

Initial target hit this am 270.0, tempted to take profits but greed wins again sticking in for 280.0. Stop moved to 264.0 to lock in a profit.

Took the opportunity to top up on these yesterday and will continue to do so on any dips below 260.0.

Opened a short on the spreads (hedge) @ 270.0 initial target 260.0 stop 275.0. Volume is crap, breaching 270.0 failed numerous times.

On a mission :O)

RNS 2594Z - Mitie appointed as preferred bidder in Lloys banking group tender.


Under the tender, the chosen supplier will provide Lloyds banking group with a complete range of facilities management services accross the Banks entire UK branch and office estate.

If closes above 290.0 today 300.0 next target. Overbought on RSI may pull back so will then be looking for a new trading range between 270.0 and 290 certainly on a mission at mo.

Long on the spreads @ 285.0 back above 50 DMA, target 300.0 tight stop, ex-divi 20/06.

Added today on the spreads @ 270.0, ex-divi yesterday. Although volume is weak has so far maintained trading range of between 270.0 - 290.0,are still winning contracts and fundamentals haven't changed. September contracts on the spreads, initial target still 300.0 stop 248.0.

Been up and down for the last month on poor volume, big improvement volume wise today though, back up above 200DMA and back in trading range, can it hold? Patience required.

Interim next Monday 13th August, twitchy botty time so close to 12 month highs, yet has held up remarkably well. So what to do? the old adage is run a winning trade which is great in theory unless like me your initial buy was damn close to 12 month high, averaging down apparently is never a good idea, i did at @ 270.0 as can be seen above. However you can also whip yourself had 2 opportunities to add at 260.0, hey ho as they say or who dares wins etc. So moved my stop to 270.0 on the spreads target still 300.0. Had the divi,own some stock for long term from 210.0 lets see how it plays out, ideally spread bet wise I'm looking to place stop at 285.0 and relax for the rest of the summer and then perhaps place a cheeky short on the spreads if required, I can dream it's allowed. :O)

Target is 300.0 and I have a Limit in place to trigger it. As can be seen by last candle spiked to 295.0, then retraced to closing price 284.6 have to watch this carefully tomorrow.

That's weird doesn't show it now, it did prior to midnight oops.

Interim Management Statement

Trading update

MITIE has made a good start to the year. With the successful commencement of our new contract with Lloyds Banking Group, we are well placed to achieve good levels of organic growth in the current financial year, in line with management's expectations. At 30 June 2012, 87% (30 June 2011: 85%) of budgeted revenues for this financial year had already been secured.

Thanks skinny

Moved stop back to 248.0 if 270.0 goes may get another chance to add @ 260.0 but guessing this is just profit taking on a down day.

Stop to 285.0 to lock in +15

Buy order left on the spreads @292.0 Dec contract, if triggered hopefully make another assault on 300.0. Half yearly Financial report due 19th November.

Barclays Capital initiates overweight on MITIE target price 345p

Stop to entry for risk free trade.

Fingers crossed for more volume next week to finally breach 300.0 and breakout up and away.

Looks like a short

Go for it chuckles.

Mostly a tongue in cheek comment, but it's at its all time high and it will be interesting to see if it gets through. I think it will retrace first but it's such a slow mover it's not worth trading unless you're betting at least £100 per point and there are much better quicker returns elsewhere for £30k of shares.

chuckles - Fair comment, usually I only trade stocks that I own (up and down) horses for courses. Quite happy with the profits to date and suits my style of trading exactly for the reasons you have stated, ie no need to screen watch. I play a lot of golf in the summer, still work 3 nights per week, this is just one of the stocks that fills that criteria for me. I use Cap Spreads (quarterly contracts) for spread betting who currently offer on this stock to trade £1 - £145 per point. Of course on the days of the week that I am not working or playing golf, I am able to day trade UKX and Dow as well as more volatile stocks, usually more so in the winter months.

Taken profits @ 298.0 + 6. Buy order left on the spreads @ 302.0

Back in long on the spreads @ 289.7

Stop to entry for risk free trade.

MITIE, the outsourcing and energy services company, has secured a contract to provide integrated facilities management (FM) for British Sky Broadcasting Group...



... the UK's largest entertainment and home communications company.

The contract, with a total value in excess of £100m over a five-year period, will see MITIE deliver services across Sky's estate in the UK and Ireland, beginning in January. 2013. As well as its two main campuses in London and Scotland, it will work at 12 regional offices, two data centres and dozens of POP sites (internet exchange points).

MITIE will have responsibility for delivering a range of services including fabric maintenance, engineering maintenance, energy management, catering, security, cleaning, mail room and couriers, helpdesk, switchboard, shuttle buses, grounds maintenance and internal landscaping.

The company also recently completed a project to build an on-site wind turbine at Sky's new broadcast facility, Sky Studios, in Osterley, West London. The most sustainable broadcast facility of its type in Europe, the turbine will provide over 133 MWh per annum of clean energy to the studios.

Ruby McGregor-Smith, Chief Executive of MITIE Group, said: "We are delighted to be working with Sky and look forward to creating what will be a truly collaborative partnership.

"Sky is a dynamic company and MITIE will ensure the FM strategy brings the highest quality services, value and innovation to its business."

Story provided by StockMarketWire.com

Finally broken through 300.0 resistance, if it can hold above till the close, looking good to run up to half yearly financial report on 19th.

Took a chance on these on Friday and added @ 295.0 and towards the close @ 290.0, moved my stop right down, both positions taken on the spreads March quarterly contracts on the spreads. Interim results tomorrow (gulp) and may God have mercy on my soul :O).

Obviously I'm hoping for good results. 50DMA breached on friday, not good for the nerves hence quarterly contracts in the event of profit takers doing theire worst.

Ouch!

Ouch! is right halifax, interim wasn't stunning but not that bad either. May take longer than March to recover but sticking with it. Same as VOD has rallied in Dec for last 5 years.

Added to March contract @ 269.0

Solid support @ 260.0 indicators improving, volume required.

MITIE secures £30 million maintenance contract
StockMarketWire.com
MITIE, the FTSE 250 strategic outsourcing company, has been awarded a £30m contract with Hammersmith & Fulham Council.

MITIE's painting business will deliver a borough-wide cyclical planned maintenance programme in a contract valued at £10m per annum for three years.

The works, commencing in March 2013, comprise of external and communal decorative repairs and redecorations for over 7,500 homes.

The contract includes maintenance of the external fabric and fixtures of the buildings, such as windows, doors, roofs, walkways, external walls and cladding. Works to communal areas also include the testing and repair or replacement of electrical installations.

Residents will benefit from a well-maintained and refreshed environment in which to live, work and play.

MITIE will invest in the community, working with the Council to create local employment opportunities, including hiring up to 10 apprentices and two resident liaison officers.

MITIE's Real Apprentice scheme will also be utilised to help long term unemployed residents back into the workforce.

Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, said: "We are delighted to be working in partnership with Hammersmith & Fulham Council to deliver repairs, painting and redecoration across 7,500 homes in the area.

"We are committed to providing the highest quality of service to the Council and its residents."

At 10:10am: (LON:MTO) MITIE Group share price was +2.75p at 274.15p


Story provided by StockMarketWire

Interim Management Statement

Trading update

MITIE has made good progress over recent months with strong organic growth being driven by new and expanded contracts. The group is performing in line with management's expectations. At 30 September 2012, 98% of budgeted revenues for the current financial year had already been secured (30 September 2011: 97%).

We continue to expect total revenue growth to be higher in the second half than seen in the first half as a result of both the organic revenue contribution, including Lloyds Banking Group, and our healthcare acquisition, Enara Group.

Acquisition of Enara and the public sector

In the public sector, we remain focused on the healthcare, justice, local authority and social housing markets. We have seen a steady flow of opportunities across all our service lines.

In healthcare, we purchased Enara for £110.8m on 9 October 2012. Enara provides high quality home care to people who require help and support due to illness, disability or infirmity and is the fourth largest provider of home care services in the UK. We are pleased with the way the integration of Enara is progressing and see significant long-term opportunities in the UK healthcare market. We are already experiencing client demand for more integrated homecare services.

We continue to expect Enara's revenue and operating profit before other items for the full year ending 31 March 2013 to be £93m and £10.1m, respectively.
In the healthcare market we have also been awarded a £3m waste management contract with Kings Health Partners and have retained a £4.7m cleaning and environmental services contract with East Hull Primary Care Trust.

In the justice market there has been a shift in the prison outsourcing strategy. We expect to see opportunities for the outsourcing of the facilities management of prisons in 2013.

Within the local authority market, our painting business has been awarded a £30m repair and maintenance contract with the London Borough of Hammersmith & Fulham.
In social housing we have secured a £4m redecoration contract with Norwich City Council.

Private sector

The private sector continues to provide significant opportunities. Our five-year, £775m partnership to deliver integrated facilities management services for Lloyds Banking Group is progressing very well.

We have been awarded a contract to provide integrated FM services for British Sky Broadcasting Group (Sky). This contract is valued in excess of £100m over five years. The services we are providing include building fabric maintenance, engineering maintenance, energy management, catering, security, cleaning, mail room and couriers, helpdesk, switchboard, shuttle buses, grounds maintenance and internal landscaping.

We have been appointed by A2Dominion in a partnership to deliver reactive maintenance for 18,000 properties in Staines, Solent Area, Oxford and Kent. The 10-year agreement, starting in April 2013, has a total value of £94m and an option to extend for a further five years.

In the banking sector, we have been awarded a cleaning and environmental services contract with a value of £10m over three years, and we have retained a security contract with a value of £11m over three years. We have also been awarded a £4m technical facilities management contract with the DX Group and secured a £5m contract to supply a new Sentinel ID and competency management system on behalf of Network Rail.

Divestment strategy

Over the last five years we have seen fundamental changes in our sectors which in some cases we believe are structural. Whilst we see significant opportunities in many areas - for example, within energy and integrated facilities management as well as healthcare - we believe some other areas will continue to be challenged. Going forward, we will actively seek to divest of cyclical businesses which are unable to reach our margin targets in the long term.

As we referred to in our interim results on 19 November 2012, we are continuing to reduce our activities in our cyclical mechanical & electrical engineering contracting businesses in certain regions of the UK that deliver large one-off projects.

Financial position

On 13 December 2012 MITIE successfully completed an issue of US private placement loan notes with institutional investors for a value of £151.6m. The loan note issue was well supported by the market and notes were issued to a range of existing and new investors. The notes were priced at highly competitive rates, with the blended average cost of the loan notes at 4.01%. The proceeds were used to repay bridging facilities that were put in place for the acquisition of Enara Group.

The US private placement consists of £25m of notes denominated in sterling and fixed at 3.87% maturing in 10 years, £30m of notes denominated in sterling and fixed at 4.04% maturing in 12 years and $153m of notes denominated in US dollars (£96.5m) and fixed at 3.85% maturing in 10 years. The US dollar denominated private placement proceeds were swapped into sterling debt

Our balance sheet remains strong and will enable us to invest in organic growth and take advantage of value creating opportunities as they arise.

Outlook

The financial year is progressing well. Our core facilities management businesses are performing exceptionally well and they are expanding their order books.
Despite on-going weak economic conditions affecting our more cyclical markets and some delays in energy infrastructure projects, we remain very positive about the range of outsourcing opportunities across our key markets. We are confident that we will continue to build on our long track record of sustainable profitable growth.


-ENDS-

Closed 269.0 entry on the spreads @ 288.3 for + 19.3. Hoping rally will last long enough to cover 290.0 and 295 entries for another + 6.7 Stop to 280.0

290.0 entry covered stop to 285.0

Stopped out - 10

tough sp starting to recover.

Halifax - To be honest glad to be out of the spreads with a profit for now. It was poor trading to begin with adding at the top of a range which has been consistant for over 12 months gambling on a breakout, as soon as it was apparent breakout wasn't happening should have got out and gone short. I need a pair of those hindsight glasses :O) Still hold the shares, looking at the chart could go either way at the mo, probably retrace a wee bit. On watch list for now re a punt either way.

Birmingham City Council believes it has overpaid one of its major contractors.

An internal document states accountants think outsourcing firm MITIE may have been charging as much as 25% more than allowed in its contract.

It said that "significant issues have been identified" in relation to some of their maintenance agreements.

There had been a difference of 27% for the current contract and 23% for the previous one which covered between 2006 and 2011, the report said.


Full story at
http://www.bbc.co.uk/news/uk-england-birmingham-21959487

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


This story is featured on BBC tv broadcasts this morning. Even if it turns out that Mitie have done nothing wrong, it will presumably prompt every other council to review past payments to see if the same situation exists - and might bring postponement of any imminent contract awards.

Response from MITIE :-

"Mitie was awarded this work through a competitive tender process and we have a full and robust audit trail for all work delivered and costs charged through this contract, all of which was approved by the council."

Share price at close 280.80 up 1.80 (+ 0.65%)

MITIE Group PLC
Preliminary announcement of results for the year ended 31 March 2013
2013 Headline1,2
Headline
year on year % change
2013 Statutory
Revenue
£1,980.6m
+8.4
£2,120.5m
Operating profit before other items
£122.0m
+8.3
n/a
Profit before tax
£111.1m
+5.4
£58.8m
Operating profit margin before other items
6.2%
nil
n/a
Basic earnings per share
23.7p
+3.9
12.3p
Dividend per share
10.3p
+7.3
10.3p
Excellent progress through a focus on markets that offer organic growth, long-term contracts and improved margins
Strong headline financial performance
• Organic headline revenue growth of 5.0%
• We are exiting our cyclical mechanical and electrical engineering contracting businesses, which generated margins well below the group average – business closure costs of £22.1m were incurred, with no further material costs expected
• Excellent conversion of EBITDA to cash of 125.7% (headline cash conversion is 108.7%), well above stated long-term KPI of 80% (2012: 83.7%)
• Net debt at 31 March 2013 of £192.2m or 1.8x statutory EBITDA (2012: £106.9m, 0.8x EBITDA)
• Total dividend for the year up 7.3% to 10.3 pence per share (2012: 9.6 pence per share)
Integrated facilities management driving strong organic growth
• Successfully mobilised our integrated facilities management contract for Lloyds Banking Group, which, at £775m over five years, is one of the biggest private sector facilities management contracts in the UK
• Awarded significant new contracts throughout the year, including with BSkyB and Ladbrokes, as well as property management contracts for London Borough of Hammersmith & Fulham and Golding Homes
Well positioned for growth
• The acquisition of Enara for £110.8m is an ideal entry point to grow within the wider healthcare market. The integration is going well, with the business performing ahead of expectations
• Comprehensive energy proposition supports every key energy issue faced by our clients, with a focus on higher margin consultancy following the integration of our Utilyx acquisition
• Robust balance sheet and strong financial position will support growth and enable further strategic acquisitions
• Strong growth in order book – up 7.0% or £0.6bn to £9.2bn (2012: £8.6bn)
• 85% of 2013/14 budgeted revenue secured (prior year: 83%)
• Pipeline of potential bid activity remains buoyant at £8.7bn
Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, commented:
“We have had another good year with success in achieving organic growth driven by new and expanded contracts, as well as completing a strategic acquisition in healthcare. Whilst the economic environment remains challenging, we have reshaped the business to focus on long-term facilities management opportunities, as well as higher margin healthcare provision and energy consulting, all of which will support our growth aspirations.
“We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access integrated services. We are positioned to build further on our long track record of sustainable profitable growth.”
1 The 2012 headline results have been re-presented to show the results of businesses being exited within other items.
2 Headline results exclude other items. Other items comprised acquisition related and integration costs of £6.9m (2012: £0.9m), restructuring costs of £10.2m (2012: £nil) and the amortisation of acquisition related intangible assets of £10.0m (2012: £9.1m). They also include the results of the businesses being exited, with revenue of £139.9m (2012: £176.2m), a trading loss of £3.1m (2012: £0.9m loss) and business closure costs of £22.1m (2012: £nil).
For further information please contact:
Erica Lockhart, Head of Corporate Affairs T: +44 (0) 20 3123 8179 M: +44 (0) 7979 784488
John Telling, Group Corporate Affairs Director T: +44 (0) 20 3123 8673 M: +44 (0) 7979 701006
MITIE will be presenting its preliminary results for the period ended 31 March 2013 at 09.30 on Monday 20 May 2013. A live webcast of the presentation will be available online at www.mitie.com/investors at 09.30. The recorded webcast of the presentation and a copy of the accompanying slides will also be available on our website later in the day. MITIE expects to publish its Annual Report and Accounts (containing financial statements that comply with IFRS) in June 2013 and copies will be available from MITIE’s registered office and on its website www.mitie.com. MITIE’s Annual General Meeting will take place at 14.30 on 9 July 2013 at UBS Investment Bank, 7th Floor, 1 Finsbury Avenue, London, EC2M 2PP.
Legal disclaimer
This announcement contains forward-looking statements. Such statements do not relate strictly to historical facts and can be identified by the use of words such as ‘anticipate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, and ‘believe’ and other words of similar meaning in connection with any discussion of future events. These statements are made by the Directors of MITIE in good faith based on the information available to them as at 20 May 2013 and will not be updated during the year. These statements, by their nature, involve risk and uncertainty because they relate to, and depend upon, events that may or may not occur in the future. Actual events may differ materially from those expressed or implied in this document and accordingly all such statements should be treated with caution. Nothing in this document should be construed as a profit forecast.
Except as required by law, MITIE is under no obligation to update or keep current the forward-looking statements contained in this report or to correct any inaccuracies which may become apparent in such forward-looking statements.
High resolution images are available for the media to download free of charge from www.flickr.com/mitie_group_plc

There is a song here somewhere, haven't got a clue who it is by starts 'Should I go or should I stay now.' skinny my money is on you knowing this one. Brave or stupid bought in here @ 251.0 chart looks suicidal we'll see.

Out of spreads @ 262.0 + 11 (Ex-Divi tomorrow)

Post 108 - the Clash.

Cheers skinny not my era :O)

@1980/1 - I was in my twenties.

Gees, didn't realise it was that old, I was 28.

Its definitely there or there abouts.

3 month high today. Interim next Monday 12th.

Gone short ahead of Interim Monday @ 276.5 target 260.0 stop 286.5

MITIE Group makes positive start to the year

StockMarketWire.com

Outsourcing company MITIE Group said it has made a positive start to the year. The group said it is well placed to achieve good levels of organic growth in the current financial year, particularly in the facilities management division, in line with management's expectations.

At 30th June 2013, 89% of budgeted revenues for this financial year had already been secured (2012: 87%).

MITIE continues to see good opportunities across its markets. The integration of Enara is progressing to plan and the business has been rebranded to MiHomecare. The investments made in integrated facilities management capabilities will deliver further growth, underpinned by the record order book and significant pipeline of sales opportunities.

In the private sector the sales pipeline remains. MITIE has been awarded a contract with Mitchells & Butlers, the leading operator of restaurants and pubs in the UK, to deliver waste management, cleaning and environmental services, for a total value of £38m over three years. It has also been awarded a number of contracts with values ranging between £5m and £10m over three years. These include: BAE Systems, providing total security management; Cineworld, cleaning cinemas in the South of England and the London head office; Kellogg's, providing facilities management and project support services at its head offices and manufacturing plant; and Capital One where MITIE retained a technical FM contract.

The group has seen some new contract awards in the healthcare sector through MiHomecare, including a Continuing Healthcare programme in Leicestershire worth £2.5m over five years.

Supporting growth opportunities

On 5th July, the group announced an investment of £1.2m in two 'MITIE Model' businesses. MITIE's existing waste management business will be set up as a stand-alone company, MITIE Waste and Environmental Services Limited. The management team will take an equity stake in the business, motivating them to grow the business and share in its future success. In addition, the group has established MITIE's latest start-up business, MITIE Local Services Limited, which will provide cleaning services to small to medium size clients in the London area.

Financial position

There has been no material change in the group's financial position since 31st March 2013.

Our strong balance sheet continues to provide the capacity for the development of the business and for further value creating acquisitions should they arise, particularly in niche markets within the healthcare and energy sectors.

Outlook

The financial year has started well, with a strong pipeline of sales opportunities.



Story provided by StockMarketWire.com

Stop to entry for risk free trade.

Seen this film before, sitting on my hands for now re-spreads, could go either way.

12 months on in exactly the same position, half year report 18th November can it crack 300p and break out. Or will history repeat and stays in same range?

Got to give it a shot went long this aft spread bet (December) @ 290.0 tight stop.

On a down day encouraging so far, but not holding my breath. At least volume is improving together with lower indicators.

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Nice rise today. Stop to entry.

Looking pretty good here Chris.

Was one of the first out of my system.

Not far off breaking out.

Stop to 300.0 to lock in + 10

Nice one Chris.

Cheers GF, fingers crossed closes above 310.0. Target 330.0

330 right ill put that on notes on stock watch.

Do use the notes box?.

Hey just remembered Robby Burns diary any minute now on naked trader Chris.

Wonder if he's closed his short on HFD or MTC? About to go on nights so wont see his update till morn. Let me know if you don't mind GF, site banned at work they think it's a porn site :O)

ARW is his main tip, just bought some new issue.

the rest.....

And that's new issue Arrow Global (ARW)

I bought some at 221.3 around the same price as it is as I write this piece.

It's a debt collector and for the forseeable future you would reckon its services are going to be in some demand.

I like it, it seems to be growing fast. A 55% rise in revenues for the 6 months to June 30th bode very well indeed and if it can push on the current valuation has some decent upside to it I think.

I'd be surprised if there wasn't 25% upside from here in the next 6 months, maybe more.

Of course Royal Mail provided a lot more instant upside than that but at least I can buy as much Arrow as I like!

An interesting one is Dillistone (DSG) . Upside: It's growing by buying other companies, raising its dividends and has no debt. It's in the recruitment software market but not affected by its up and down cycle. It pays a dividend of around 4%.

Downside: It's AIM and quite small still, so have to be careful with liquidity, in other words not buying too many so easy to get out if it goes wrong. And a director sold 20,000 shares recently, though he does still hold nearly a million!

But with profits growing the market cap for DSG looks too small and I think there is a potential 50% upside with some patience.

So now I can hold AIM shares in my Isa, I have tucked these away, forget about them and hope the growth comes into play. If it does, some nice upside. I got 3,000 yesterday at 99.9.

Got a £30 spreadbet on too, hard to find a firm that does prices on the very small companies but this company does: http://www.spreadex.com/nakedtrader

It does spreads on smaller ones other companies don't so worth having an account for that, been using it for a while and very happy so far.They're also offering a mini Ipad or something - read through conditions and all that as I would guess you'd have to make a trade or two to get it.

Unusually I made a fair few quid on a daytrade! SDL issued a profits warning so I went in for a bounce and got nearly a grand profit as it bounced back up. I took the profit and ran for it!

After taking nearly £45,000 of long term profits over the last few weeks I have slowed down on the profit taking now!

I sold a little Al Noor at 822 - It is a long-term trade but I just cut a little off the top to bank a bit of the excellent profit so far, for web purposes for a profit is £2,370.

I cut the Blinkx short at 147 for a profit of £240. Level 2 showed buyers building up. However if it continues to bash up against 155-156 without going through I'll probably try the trade again.

The Halfords short went at 372 for a profit of £370. And Mothercare went down nicely and moved into a good profit so I moved the stop to breakeven. However it went back up and so no profit made in the end.

All that leads to a profit banked for the site this week of £2,980.

ELSEWHERE

A nice rise for my last trade Accumuli, about a 25% profit so far but happy to hold onto this trade for a lot longer as I think there is further upside to come in time.

Fusionex does its thing of getting to a price and then staying there for a while, fine by me, in nice profit and hoping for an eventual uplift - when it moves it can suddenly move a lot higher quickly out of nowhere.

After the strong statement from Telecom Plus- a sigificant uplift in customers and a rosy future remains - it has moved up to near all time highs.

I still have well over £400 grands worth - most of which is profit. I think the meantime the shares should gradually rise over the years an the dividend keeps on going up providing a very decent income for me.

32 Red has had a brilliant week - up a good ten per cent and it looks like my original buy is going to be a doubler.

Kentz has been rising again. Perhaps the fact the big didn't go through is good news as in time a new bidder might have to pay an awful lot more.

Renew and Parity have both had good weeks rising strongly and Regeneris hs been showing some good gains too.

Porvair has shown signs of life and has boomed up from 230 ish to 260ish this week.

Riskier oil buy Caracal looks like it wants to get up and over 500p but it's not sure but still a nice rise for now.

Conviviality and Cohort appear a bit stuck and might need time to get an rerating. Conviviality is showing some signs of heading higher though.

The future continues to looks very bright for Vectura (VEC) which last week reported approval for another of its drugs. Looks like it might not be long now till I doubled up on the first buy. Massive profits now.

Entertainment One has had a nice run higher this week as has Communisis which got tipped somewhere apparently.

Long-termer Filtronic recently reported everything is on track. It doesn't move much as the market is waiting to see how 4G goes. But happy as doubled and quadrupled on it so far.

Hellerman Tyton remains stable - The first lot bought when it listed around 195 are doing nicely so far as it pushes 250 Keep thinking about taking profits in Hellerman but it keeps pushing up.

GB continues to push up and this one has more or less become a doubler for me. Some nice rises this last few days.

I'm happy I've spent the last month banking some major profits in some of the longer-term ones, it seems sensible.

The Halfords short went at 372 for a profit of £370. And Mothercare went down nicely and moved into a good profit so I moved the stop to breakeven. However it went back up and so no profit made in the end.

Thanks mate.

No probs.

Hopefully after profit takers moved in yesterday on Wednesday spike, moving up nicely.

Looks good.

HSBC cuts to underweight from neutral. Target raised from 260p to 275p? Go figure.

Chris stop swearing. Toffee nose.

:O) should be an easy 3 points this weekend for the chosen one mate. Are you gracing Old Trafford with your presence? Hope you don't choke on your prawn sarnie. :O)

LOL LOL LOL. Roy Keane at is best.

No im not going , got a mate whos lost his dad. Im wafering the seat.

We still have 2 years on a 7 year contract left for the corporate box, 7 of us joined . free ale and a free buffy put on.

If we dont get a big star we wont renew come 2017 season.

cheers bud.

gf - "If we dont get a big star we wont renew come 2017 season"

LOL - That's terrible, just about sums up the majority of all 'glory hunters' at your club, what happened to loyalty? Or 'Red till I die' :O)

Added @ 312.4 on spreads.

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Half-Yearly report Monday 18th November.

Mitie Group booked an H1 pretax profit of £55.3m, up 9.5%, on a 10.5% rise in revenue to £1.044b. It proposed an interim dividend of 4.9p a share, up 6.5%.

"The first half of the year has seen strong operational and financial performance for MITIE. We continue to identify new opportunities with both existing and new clients in all of our key markets," said CEO Ruby McGregor-Smith in a statement.

"The successful re-positioning of the business means we are in a stronger and better position than ever to deliver higher growth and maintain strong margins. We look ahead with confidence," Smith said.

Investec reiterates buy on MITIE Group, target raised from 310p to 330p.

Added @ 315.0

Having a go @ 320.0 albeit on low volume.

04th Feb 2014 half yearly divi payment date. 19th May preliminary statement of annual results.

Stop raised to 320.0 to lock in + 30

Stop to 325.0 to lock in + 35.

330.0 breached, all time high albeit on low volume.

Out the spreads (for now) target 330.0 + 40

Sp bang on 25DMA support 320.0p. Interim next Monday. Obvious profit taking on market downturn. Watching, may be worth a punt long.

3 February 2014

Mitie Group plc



Q3 Interim Management Statement



Mitie Group plc ("Mitie"), the strategic outsourcing company, releases its Q3 Interim Management Statement for the period from 1 October 2013 to date.



Trading update

Mitie has made positive progress over recent months with good organic growth being driven by new and expanded contracts.



We are continuing to successfully re-position the group to target higher growth and higher margin areas. Our long-term strategy is focused on growing in our core markets of facilities and property management, which are differentiated by our specialist energy consulting services. Healthcare is the other key part of our growth strategy, where we are concentrating on the homecare market. In addition, we are continuing with our phased exit from the lower-margin, cyclical elements of our business, including our mechanical and electrical engineering contracting businesses, and the construction element of our asset management business.



As reported at the interim results, 99% of budgeted revenues for the current financial year had already been secured at that time (prior year: 98%).



Facilities Management

Our Facilities Management division is continuing to deliver strong organic growth and we are seeing an uplift in the level of bid activity across our businesses in both the public and private sectors. We have a robust sales pipeline and see increased potential to further benefit from the trend towards bundling and integration of more services. This division has a number of exciting growth opportunities and is well positioned to deliver further growth.



We have successfully secured and extended a number of contracts for new and existing clients, including with:

· Four Seasons Healthcare: commenced a new contract in January to deliver technical FM across its estate of care homes, with a total value of £33m over three years

· The London Borough of Sutton: a new contract delivering technical FM, with a total value of £15m over seven years, with a further potential three-year extension

· The Maritime & Coastguard Agency: a new bundled FM contract with a total value of £4m over three years

· A British shoe manufacturer: a new contract, subject to final negotiations, providing bundled FM with a total value of £4m over three years

· AWE, the Atomic Weapons Establishment: retained and expanded our partnership to deliver bundled FM, with a contract value of approximately £50m over five years

· Luxury carmaker: retained and expanded our contract to deliver range of cleaning and environmental services for a further five years, with a total value of £25m

· Eurotunnel: retained and expanded a total security management contract with a total value of £12m over three years

· National Grid Plc: a new total security management contract with a total value of £4m over six years



Property Management

The Property Management division has seen some delays in the commencements of new contracts, but has experienced improving market conditions in recent months. In particular, in the social housing market we are seeing an increasing trend towards longer-term, larger, bundled contracts incorporating more service lines across larger portfolios. Our housing repairs and maintenance contract with Hammersmith & Fulham Council commenced successfully in November - this contract together with our painting contract, have a total value of £28m per annum over ten years.



We have been awarded a contract with Southampton City Council to deliver Energy efficiency measures to council properties. Despite the recent Government announcement relating to the reduction in ECO funding these works will still proceed and the contract is likely to provide £10m of revenue over the next 12 months. We have also been selected to deliver capital works improvements for the Royal Borough of Kingston on Thames 'Better Homes Initiative' with a total value of £25m over four years.



Our roofing business has been awarded new contracts with Mercedes Benz and Alstom Grid, with total values of £3m and £2m over a twelve-month period, respectively.



Energy Solutions

Within our energy solutions division, the higher margin consultancy services led by Utilyx continue to perform well, driven by an increasing interest in energy consultancy from our existing FM clients.



We are continuing to reduce our exposure to the loss-making, construction element of our Asset Management business, which has become part of the Energy Solutions division. We are seeing ongoing project delays, which together with one-off costs associated with exiting a small number of these sizable contracts, is resulting in continued underperformance in this area of the business.



Healthcare

The integration of MiHomecare is on track, the business is performing to plan and a growing pipeline of opportunities is emerging. MiHomecare was recently appointed to a new two-year framework to provide care services across Peterborough, with a further potential one-year extension. We have also been appointed to the reablement services and homecare services frameworks by the London Borough of Camden, for a two-year period with a further potential two-year extension.



On 15 January 2014, we completed the acquisition of Complete Care, which provides high acuity care at home to around 150 individuals with on-going complex clinical healthcare needs. An acquisition in the complex care arena was a key part of our strategy to develop our healthcare business, and Complete Care will complement MiHomecare's existing domiciliary care operations in England and Wales.



Complete Care generated revenue and EBITA of £17.9 million and £1.1 million respectively in the year ended 31 March 2013. Integration costs are estimated to be in the region of £1.3 million. The business employs around 650 personal care assistants, including registered nurses.



We are confident as we reach the end of the integration of MiHomecare, together with the acquisition of Complete Care which further strengthens our proposition in the healthcare market, that significant growth opportunities exist in this division.



Non-core activities: Mechanical and electrical engineering contracting

The exit from our cyclical mechanical and electrical engineering contracting businesses continues, although is taking slightly longer than anticipated. As a result, we now anticipate that losses in the second half of the year will be around £3-5m higher than those reported in the first half of the year.



Pensions

Mitie is currently in consultation with members of its main defined benefit pension scheme regarding a proposed change to their future pension entitlement. Under the proposed change, the pension scheme will remain open to future accrual but with a generally reduced level of future benefit increases. The deficit on the scheme at 30 September 2013 was £27.1m under IAS 19 (revised).



Should the proposed change be implemented following the consultation, it is expected to reduce the scheme's future liabilities and therefore reduce the deficit on the scheme, as well as mitigate a potential rise in future contributions. Any such reduction in scheme liabilities would result in a one-off credit to the income statement in the current year under IAS 19 (revised).



Financial position

Our balance sheet remains strong and enables us to invest in organic growth and take advantage of value creating opportunities as they arise.



Outlook

The financial year is progressing well. We continue to re-position the group away from low growth, low margin activities and we remain very positive about the range of outsourcing opportunities across our key markets. Mitie is well positioned to deliver good organic growth, particularly in facilities management and healthcare, and maintain strong margins. We are confident that we will continue to build on our long track record of sustainable profitable growth.



-Ends-







Future reporting dates

Mitie will announce its full year results on Monday 19 May 2014.



For further information, contact:

John Telling

Group Corporate Affairs Director, Mitie Group plc

T: +44 (0) 203 123 8673 M: +44 (0) 7979 701 006 E: john.telling@mitie.com



Erica Lockhart

Bounced off 50DMA flirting with 25DMA.

Mitie Group plc ("Mitie"), the strategic outsourcing company, announces a pre-close trading update before entering a close period on 1 April 2014. Preliminary results for the financial year ending 31 March 2014 will be announced on 19 May 2014.

Overview
Since the announcement of the group's Interim Management Statement (IMS) on 3 February 2014, Mitie has continued to perform strongly, particularly in Facilities Management (FM), and expects to deliver underlying full-year results that are in line with market expectations.

We continue to successfully re-position the group to focus on higher growth and higher margin sectors.We are focused on driving our core UK FM business to its full organic growth potential and being the number one provider in our chosen markets. At the same time, we will invest and grow in adjacent markets - healthcare is a particular focus and we aim to take the leading position in the homecare market. The strength of our business in both of these areas will enable us to further build on our track record of sustainable, profitable growth.

http://www.moneyam.com/action/news/showArticle?id=4776023

Long (SB) @ 329.0 19/05 Preliminary statement of Annual results.

Mitie Group plc

Preliminary announcement of results for the year ended 31 March 2014

Excellent progress through a focus on key growth markets




2014 Headline1

Headline

yoy % change2

2014 Statutory

Statutory

yoy % change


Revenue

£2,142.6m

+8.2

£2,221.1m

+4.7


Operating profit

£127.5m

+6.0

£82.6m

+21.5


Profit before tax

£113.3m

+4.3

£68.4m

+21.5


Operating profit margin

6.0%

(0.1ppt)

3.7%

+0.5ppt


Basic earnings per share

24.3p

+5.2

13.4p

+13.6


Dividend per share

11.0p

+6.8

11.0p

+6.8


Strong financial performance

· Total headline revenue growth of 8.2%, of which 5.2% was organic

· Headline operating profit up 6.0% to £127.5m (2013: £120.32m)

· Excellent conversion of EBITDA to cash of 107.3% (2013: 127.8%2 reported), well above stated long-term KPI of 80% (headline 102.4%; 2013: 110.0%2)

· Net debt at 31 March 2014 of £186.6m or 1.6x statutory EBITDA (2013: £192.2m or 1.9x statutory EBITDA)

· Total dividend for the year up 6.8% to 11.0 pence per share (2013: 10.3 pence per share)

Core facilities management business driving strong organic growth

· Sector-leading organic growth in facilities management of 7.2%

· Successfully retained a number of our most significant contracts, including with Network Rail (£75m over five years) and Capita (£110m over five years)

· Awarded a landmark contract with the Home Office, valued at £180 million over eight years, with responsibility for over 900 detainees at the Colnbrook and Harmondsworth Immigration Removal Centres near Heathrow

· Awarded a range of new integrated or bundled FM contracts valued in excess of £10m per annum, including with the Bank of Ireland, Mitchells & Butlers, Four Seasons Healthcare, an insurance company and a major online retailer

· Property Management business successfully mobilised our contract with London Borough of Hammersmith and Fulham (£200m over ten years) and awarded a new contract with Royal Borough of Kingston (£15m over two years)

Entry into the healthcare market progressing well

· Integration of MiHomecare is complete and we continue to see substantial long-term opportunities to grow in the homecare care subset of the healthcare market

· Acquired Complete Group in January 2014 for £9m, adding complex care capabilities to our homecare proposition

Further de-risking the business

· Restructured the defined benefits pension scheme, resulting in a one-off, exceptional net credit to the income statement under IAS 19 (revised) of £10.2m and reduces future increases in pension contributions

· We are close to completing the exit from our mechanical and electrical engineering construction business - exceptional losses of £13.6m in the year (2013: £25.2m including business closure costs)

· We are also reducing our exposure to the design and build element of our former Asset Management business - one-off, exceptional charges of £25.4m in the year (2013: £nil)

Well positioned for further growth

· Robust balance sheet and strong financial position will support growth

· 84% of 2014/15 budgeted revenue secured (prior year: 85%)

· Sales pipeline buoyant at £8.2bn (2013: £8.7bn) and order book remains strong at £8.7bn (2013: £9.2bn)

Ruby McGregor-Smith CBE, Chief Executive of Mitie Group plc, commented:

"We have made excellent progress, achieving sector-leading organic growth driven by new and expanded contracts, as well as completing a bolt-on acquisition in healthcare. We are very well-positioned as one of the UK's leading integrated facilities management providers and we have also invested in higher margin markets which will support our growth aspirations.

"We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access bundled and integrated services. We are confident that we will continue to build on our track record of delivering sustainable, profitable growth."







1 Headline results exclude other items. Other items comprised: exceptional charges in relation to design and build contracts in Energy Solutions of £25.4m (2013: £nil); a net credit arising from the restructure of the Mitie Group defined benefit pension scheme of £10.2m (2013: £nil); acquisition and integration costs of £5.1m (2013: £6.9m); the amortisation of acquisition-related intangible assets of £11.0m (2013: £10.0m); and restructuring costs of £nil (2013: £10.2m). Other items also include the results of the engineering construction business being exited, which had revenue of £78.5m (2013: £139.9m), a trading loss of £13.6m (2013: £3.1m) and business closure costs of £nil (2013: £22.1m).



2 The 2013 results have been restated following amendments to IAS 19 'Employee Benefits'.





For further information please contact:

Erica Lockhart, Head of Corporate Affairs
T: +44 (0) 20 3123 8179 M: +44 (0) 7979 784488

John Telling, Group Corporate Affairs Director
T: +44 (0) 20 3123 8673 M: +44 (0) 7979 701006



Mitie will be presenting its preliminary results for the year ended 31 March 2014 at 10.00 on Monday 19 May 2014. A live webcast of the presentation will be available online at www.mitie.com/investors at 10.00. The recorded webcast of the presentation and a copy of the accompanying slides will also be available on our website later in the day. Mitie expects to publish its Annual Report and Accounts (containing financial statements that comply with IFRS) in June 2014 and copies will be available from Mitie's registered office and on its website www.mitie.com. Mitie's Annual General Meeting will take place at 14.30 on 9 July 2014.



Legal disclaimer

This announcement contains forward-looking statements. Such statements do not relate strictly to historical facts and can be identified by the use of words such as 'anticipate', 'expect', 'intend', 'will', 'project', 'plan', and 'believe' and other words of similar meaning in connection with any discussion of future events. These statements are made by the Directors of Mitie in good faith based on the information available to them as at 19 May 2014 and will not be updated during the year. These statements, by their nature, involve risk and uncertainty because they relate to, and depend upon, events that may or may not occur in the future. Actual events may differ materially from those expressed or implied in this document and accordingly all such statements should be treated with caution. Nothing in this document should be construed as a profit forecast.

Except as required by law, Mitie is under no obligation to update or keep current the forward-looking statements contained in this report or to correct any inaccuracies which may become apparent in such forward-looking statements.



High resolution images are available for the media to download free of charge from www.flickr.com/Mitie_group_plc





Overview

Mitie has had another very good year, delivering strong organic growth and implementing further change to accelerate growth in the longer term.

Our core facilities management (FM) business performed exceptionally well, with a steady flow of contract awards and retentions across both the private and public sectors. We are beginning to see an uplift in the level of bid activity across our businesses and we have a robust sales pipeline. We also see a significant opportunity to expand our business with our existing client base, by proactively selling the benefits of bundling more services and of integrated FM. Our energy consulting capability remains an important niche area for us and differentiates our integrated FM proposition in the marketplace.

Our entry into the healthcare market has continued with success, with MiHomecare performing well and the acquisition of Complete Group during the year providing us with more complex care capabilities. We have built a strong proposition in the healthcare market and see significant long-term growth opportunities in this area.

Our strategy is to focus on markets where we see potential for growth and which meet our margin targets. In this financial year, we expect to complete our exit from our loss-making mechanical and electrical engineering construction business, which is exposed to the construction markets. We are also moving out of the design and build element of asset management. Whilst we have incurred significant losses in doing so, the group is now better positioned to deliver our growth ambitions.

As ever, our achievements during the year would not be possible without the exceptional efforts of our people and we would like to extend a huge thank you to each of them, and welcome those who joined us.

Results

During the year, headline revenue grew by 8.2% to £2,142.6m (2013: £1,980.6m). Headline operating profit increased by 6.0% to £127.5m (2013: £120.3m), reflecting a margin of 6.0% (2013: 6.1%). Headline profit before tax increased by 4.3% to £113.3m (2013: £108.6m) and headline earnings per share increased by 5.2% to 24.3p (2013: 23.1p).

Our statutory results include £44.9m of other items (2013: £52.3m), of which £33.9m are non-recurring (2013: £42.3m) and will not form part of our income streams in the future. The key non-recurring items are: £13.6m of trading losses incurred as part of our exit from our mechanical and electrical engineering construction business; exceptional charges of £25.4m in respect of reducing our exposure to the design and build element of our Asset Management business; costs resulting from acquisitions and the related integration costs of £5.1m; and a £10.2m accounting net credit resulting from a change to future pension obligations under the Mitie Group defined benefit pension scheme.

Cash generation remained strong, with cash inflows from operations of £124.1m (2013: £131.0m), representing excellent conversion of EBITDA to cash of 107.3% (2013: 127.8%). The balance sheet remains robust with net debt at the year end of £186.6m or 1.6x EBITDA (2013: £192.2m or 1.9x). Return on capital employed has increased to 16.9% (2013: 16.5%).

We have committed bank facilities of £250m until September 2015 along with £252m equivalent of US Private Placement debt. Both of these facilities leave us in a strong position to take advantage of value-creating acquisition opportunities as they arise.

During this period, our order book has decreased by £0.5bn to £8.7bn (2013: £9.2bn). Our sales pipeline currently stands at £8.2bn (2013: £8.7bn) and our forward revenue visibility is excellent, with contracted revenue for the year ending 31 March 2015 at 84% of budgeted revenue (prior year: 85%).

Dividend

The Board's policy is to grow the dividend broadly in line with the underlying earnings of the group. The final dividend proposed by the Board has increased by 7.0% to 6.1p per share (2013: 5.7p per share), bringing the full year dividend to 11.0p per share (2013: 10.3p per share), an increase of 6.8%. Subject to shareholder approval at the Annual General Meeting, the dividend will be paid on 6 August 2014 to shareholders on the register at 27 June 2014.

Board and corporate governance

Corporate governance remains an important and committed area of focus for the Board. The priorities during the year were the continued execution of our growth strategy, the ongoing review of performance and risk and the composition of the Board.

On 1 June 2013, Jack Boyer was appointed as a Non-Executive Director of the Board. He has extensive experience of building and growing businesses globally and his early career was spent in consultancy and banking. On 31 October 2013, Terry Morgan CBE retired as a Non-Executive Director of the Board and Chairman of the Remuneration Committee. We thank him for his contribution and wish him well for the future. On 1 November 2013, Crawford Gillies undertook the role and responsibilities of Chairman of the Remuneration Committee.

Bill Robson, our longest serving Executive Director, has indicated his intent to step down from the Board on 31 July 2014. Bill has served as a member of the Board since August 2001 and we are delighted that he intends to remain as part of the executive team. He will continue as Managing Director of our Property Management division, focusing on the many new opportunities that are developing within the housing sector.

Outlook

Our focus remains on driving our core UK FM business to its full potential in order to generate strong organic growth and maintain our margins at or above their current levels. At the same time, we will continue to grow and invest in adjacent markets - healthcare is a particular focus and we are well-placed to benefit from the substantial growth opportunities this market will offer.

We have made significant progress re-positioning the group away from low growth, low margin and higher risk activities by exiting businesses which do not meet our financial criteria. As a result, we are better placed than for many years to deliver growth in our chosen outsourcing markets.

The group is financially robust and we have a clear, focused strategy for growth. We are excited about the growth opportunities ahead and confident of delivering shareholder value.





Strategy overview

Our strategy is to deliver sustainable, profitable growth, and we will achieve this through two key routes.

We are focused on driving our core UK FM business to its full potential. Our ambition is to be the leading FM provider in the UK, with specific strengths in our target sectors. We will continue to focus on clients in both the public and private sectors, and provide them with world-class services, unrivalled expertise and the best value for money.

Our growth in FM will come in part from developing relationships with new clients, but more so through expanding our relationships with existing clients. The evolution that our clients make from single service delivery, to bundles of services, to integrated FM in some cases, has been a significant driver of our growth and we see substantial further opportunities to grow with our clients in this way. To this end, we are investing heavily in our key account management capabilities and are taking a more sector-focused approach to both sales and operations. In doing this we aim to grow our overall market share.

At the same time, we will continue to grow and invest in adjacent markets. Healthcare is a particular focus and we aim to take the leading position in our chosen sectors of the homecare market. The integration of MiHomecare is complete and with the acquisition of Complete Group during the year, we are well-placed to exploit great opportunities in this fast-growing market.

This strategy will enable us to achieve a set of key business goals over the next five years:

· As part of our objective of being the UK market leader in FM and in order to better support our clients, we are focusing our business on market sector specialisms.

· We will further build on our success in the Care and Custody sector, growing our services to Central Government, particularly in the area of immigration and prisons.

· In the homecare market, we will develop a leadership position and realise the sales synergies created by adding more complex care into our offering.

Across everything we do, we will be the trusted advisor for our clients, building and growing strong relationships based on sector-leading expertise and propositions, strategic advice, innovative technology and management information.

All of this will ensure that we are a scale player with a strong competitive position in each of our major markets, we generate margins that are above the industry average and we have excellent visibility of long-term revenues.

Reducing risk in our business

We are concentrating on higher margin activities in growth markets that feature long-term, secured revenue streams.

Our mechanical and electrical engineering construction business, where we played a role as subcontractor on major installation projects, carried an unacceptable degree of risk. In addition, as it operated in a cyclical, low margin sector, it could no longer meet our financial or strategic targets. Consequently, we are now well on the way to exiting this business and expect this process to be completed during the financial year ending March 2015.

For similar reasons, we have also been actively reducing our exposure to the design and build element of our Asset Management business, which has become part of the Energy Solutions division. We have existing commitments on a small number of legacy projects where we are carrying design and build risk and continue to experience delays and considerable cost overruns. As a result, during the financial year we recognised a number of non-recurring, exceptional losses in relation to some of these contracts. We have assessed the carrying value of any assets in our accounts and our contract related provisions are £25.4m as at the year end. This is significantly higher than we previously estimated, predominantly due to overruns on one of our generation projects, where we have provided against delays to completion and applied a more conservative assessment of the through life value of the contract. Going forward, design and build risk remains on a small number of material energy contracts and their financial returns remain uncertain. We continue to closely monitor their operational and financial performance.



Marketplace overview

Clients continue to recognise the strengths of outsourcing in the drive to meet cost and operational challenges. We are excited about the growth opportunities in our targeted markets, as clients move from outsourcing single services to relying on our support across bundled services and, ultimately, fully integrated FM.

Although the UK economy is showing signs of improvement, and we have seen an increase in our bid activity across our businesses in the past 12 months, there is still some distance to go before we can say that the effects of the downturn are definitely behind us.

Against this backdrop and the austerity measures which continue to be implemented by both central government and local authorities, outsourcing is now well-established as a route to improved services with lower costs.

We work with people who want to perform better, and see attractive opportunities across FM and Healthcare.

Facilities Management

The total UK FM market is valued at £125 billion, with £75 billion currently outsourced. Our principal addressable market, defined as contracts worth over £500,000 per year, is estimated to be £45 billion, of which we have a 4% share. The market remains fragmented and is dominated by around 120 large providers, with the 12 largest players accounting for 34% of the market. Individual service line markets tend to be led by different competitors, who in turn have follower positions in other markets. The FM market is expected to grow around 2% per year between 2013 and 2017, a significant improvement on the 1.2% per annum achieved between 2007 and 2013 (sources: leading management consultancy; MTW Research).



During 2013, we commissioned an independent qualitative research programme among senior property and facilities directors in the UK. Clients want companies such as Mitie to help them carry out their business better, not just cheaper. Among the survey's key findings was the fact that although outsourcing remains a key method of reducing costs, it is also recognised as a way to harness expertise. Many interviewees also agreed that a focus on least cost provision was a false economy, and stressed the need for a more outcome-based approach that encourages the best performance from the service provider.

The research identified five key customer needs: an emphasis on low price coupled with a proven track record; a steady shift towards bundled services and integrated FM; increased expectation of FM providers, with a need for strategic advice as well as efficient service delivery; greater demand for technology and management information; and reduced demand for FM on a global or cross-border basis.

Public sector

In the public sector, we believe that outsourcing will remain a key government strategy and we foresee an increase in activity, driven by continuing budget reductions. The CBI recently estimated that the Government is only half way through its planned deficit reduction. In order to further reduce the deficit and procure services that offer the best value for money, it will continue to open up public services to independent competition. This will be supported by the UK public services industry, which makes up more than seven per cent of the UK's GDP and supports over five million jobs. The CBI also proposed to introduce new measures to boost transparency and trust in public sector contracts that are managed by private and third sector organisations, which we endorse.

Although we will be highly selective in the opportunities we pursue, justice, social housing and local authorities are all areas where we anticipate high levels of growth in the coming years. While there have been procurement delays in the justice market, we remain confident and have also identified attractive opportunities in social housing, particularly through the long-term nature of contracts and relationships that are a feature of this market.

Private sector

Private sector clients face many similar challenges to their public sector counterparts. They aim to outsource non-core services in order to reduce costs while maintaining - and in many cases improving - the services they offer. We have proven strengths in many segments and expect good growth, especially in retail, manufacturing, transport and the financial sector. Our growth has been predominantly driven by the private sector over the past five years, and we expect this trend to continue, as the economic recovery gains momentum.

Healthcare

Out of an annual UK healthcare spend of over £100 billion, our target social care market accounts for £17 billion and the homecare market in England alone currently accounts for around £8 billion. However, a number of trends will drive this amount up in the coming years.

The UK population is ageing - with the number of over 85s expected to double in the next 25 years. This increase means that long-term care is expected to account for an increasing proportion of GDP. According to the OBR, this figure could rise from around 1.5% today to 2.5% by 2060. Cost pressures continue to mount, with local authorities expected to reduce spending by £800 million in the near term. The planned 10% reduction in council spending over the next two years, announced in the 2013 summer spending review, will add further momentum to the drive to achieve better value in all aspects of long-term care.

Homecare is recognised as an important element in the move towards a system of care that both meets patient needs and also delivers better value. People prefer to remain in their own homes when possible, while central government and local authorities view homecare as a more cost-efficient alternative to care in hospitals or retirement homes. Consequently, homecare in the UK is a marketplace that displays many of the same features as the early days of FM outsourcing. These include clear opportunities for consolidation in a fragmented market and for technology to play a major role in accelerating performance. Furthermore, there is the potential for us to build on our existing FM relationships with local authorities and the NHS to secure homecare contracts.

Increasingly, homecare (or adult social care) is publicly funded but privately delivered. Two decades ago, the vast majority of care was provided by local authorities. Today, such provision is negligible and almost all care is delivered by independent organisations such as Mitie.



Operational performance

There are significant opportunities for us to grow organically and to win market share. This growth will be driven by: our extensive self-delivery capability supported by a well-managed supply chain, which generates value for our clients whether they choose single, bundled or integrated services; our focus on technology which can increase efficiency and enhance profit margins; and our commitment to investing in capable management teams that can build and maintain key strategic relationships.

We have aligned the way we report our FM business to more accurately reflect how the business is managed, which is in the two key areas of Soft and Hard FM. Soft FM is made up of: cleaning and environmental services; security; catering and front of house services. Hard FM provides a range of technical and building services.

Our integrated FM proposition brings together a range of hard and soft FM services. During the year, the total revenue generated from our integrated contracts was £668m.

Over the last two decades, the FM industry has moved from providing single services to bundles of services. Today, the focus is on integrating a wide range of services into one cohesive contract, often at multiple and diverse sites. However, although the immediate benefits of bundled and integrated services include lower costs and a single point of accountability, long-term success is built on a track record of consistent delivery across all service lines.

Many FM clients see technology - and specifically management information - as a key differentiator among providers. The data that we collect and hold as part of managing a client's estate can provide powerful management information. It allows us to reduce the total cost of occupancy and improve service levels and responsiveness. It also provides insight for strategic decisions about how our clients run their estates; for example, how to better use mobile working or how to invest (or divest) across their portfolio.

While a fully integrated FM model will not suit all clients, the shift to greater integration and bundling of services is steady and is continuing to generate new and expanded contracts for Mitie.

Soft FM




2014

2013

Growth


Revenue

£1,190.8m

£1,122.2m

6.1%


Operating profit

£74.8m

£73.4m

1.9%


Operating profit margin

6.3%

6.5%

(0.2ppts)


Order book

£5.1bn

£5.0bn

2.0%


Cleaning and environmental services

Launched in 2013 under the Environmental+ brand, this business is one of the UK's largest providers of cleaning, pest control, landscaping, waste recycling and winter gritting. It employs over 32,000 people and is active on every high street in the country.

We brought these services together under one banner to reflect client demands for linking services that complement each other, saving costs and improving quality.

This model allows us to equip our people with multiple skills, thereby reducing the number of site visits and improving productivity. This joined-up approach also increases efficiencies, saves vital resources such as energy and water, and helps to reduce our clients' carbon footprints.

Security

Our focus is on providing our clients with total security management. We have responded to changes in the industry by adopting a risk-based approach to security - we assess risks and then bring together the right people, technology and consultancy services to manage them.

While manned guarding remains central to our security services, we have diversified through a range of higher margin and predominantly technology-based offerings. Services such as remote monitoring, employee screening, lone worker protection and vacant property security systems are changing our business mix.

In addition, there are good opportunities for us to incorporate security within integrated FM contracts.

Catering and front of house

This is a service line that is now delivering in a market where we have huge potential to grow - the UK contract catering market alone is worth £4.2 billion. Our Gather & Gather catering brand has increased its bottom line three-fold in only three years and is winning business in its own right, as well as an integral part of broader FM contracts.

Competition in this market is significant but fragmented - split between the large global corporates and a host of smaller, independent and owner-operated businesses. The market is based on specialisation, with defined brands and offerings targeted at specific sectors. Our team is diverse and contemporary, and offers clients a new, challenger brand with a real point of difference.

These services have huge potential to generate reputational goodwill and position Mitie as the premier provider of catering and reception services, in combination with our award winning Client Services.

Hard FM




2014

2013

Growth


Revenue

£579.4m

£526.7m

10.0%


Operating profit

£30.0m

£29.0m

3.4%


Operating profit margin

5.2%

5.5%

(0.3ppts)


Order book

£2.1bn

£2.8bn

(25.0%)


Our technical and building services offering encompasses a full range of hard FM services, from mechanical and electrical maintenance to lighting and building fabric repairs. We operate in a wide range of sectors and are currently seeing good opportunities across the business; particularly with clients in the transport, local government, retail and commercial sectors.

Demand for our mobile maintenance service continues to grow, and it is now the most comprehensive in the UK. We are also the largest lighting contractor in the UK, and the advances in LED lighting technology have enabled us to differentiate ourselves further by providing energy efficiencies.

Our specialist services continue to provide new opportunities, through services such as water treatment, building controls, fire and security systems and compliance; all of which continue to grow. Our smartphone operational solution and performance audit software is revolutionising the way our engineers operate, and the way our clients manage their technical assets.

To further support our clients, we have refined our operational structure. Our technical and building services offering now encompasses a range of niche property services such as roofing and plumbing, which previously sat within Property Management. As all of these services are related to either long-term maintenance contracts or short-term projects for clients with large, commercial property portfolios, there are significant benefits from operating them as part of a singular, broader business.



Energy Solutions




2014

2013

Growth


Revenue

£15.9m

£45.9m

(65.4%)


Operating profit

(£4.4m)

(£1.4m)

(214.3%)


Operating profit margin

(27.7%)

(3.1%)

(24.6ppts)


Order book

£0.2bn

£0.3bn

(33.3%)


Energy and carbon consumption are playing a growing role in the property management decisions and strategies of our clients. Costs continue to be a major issue for all, with our own research forecasting that they will double by 2020. The issue is further clouded for clients by the confusing landscape of obligations and policies, as well as the complex solutions offered by many providers.

Our FM proposition is supported by services from our Utilyx business, which help our larger FM clients to procure, use and generate electricity more efficiently. Energy consulting is an important differentiator for many of our clients, who recognise that it can add significant value to their relationships with Mitie. Utilyx also works direct with a large independent client base.

During the year, we integrated our Asset Management business into Utilyx. We are continuing to reduce our exposure to the design and build element of this business.

Property Management




2014

2013

Growth


Revenue

£264.8m

£242.8m

9.1%


Operating profit

£14.4m

£13.6m

5.9%


Operating profit margin

5.4%

5.6%

(0.2ppts)


Order book

£0.8bn

£0.9bn

(11.1%)


Property Management now operates solely in the domestic housing market, serving both private and public sector customers. We deliver a wide range of property related services, and are a market leader in comprehensive repair and paint services. These operations are delivered locally through our branch network in 28 locations, and reach in excess of 200,000 homes across the UK.

The market is fast moving, and we continue to innovate and expand the range of services we offer. We support our clients to make transformational change, which includes bespoke partnering models, legal structures, strategic planning, investment consultation and stock surveys.

The market is also continuing to consolidate and during 2013 we saw an increasing trend towards longer-term, larger bundled contracts across larger social housing portfolios. With continued pressure on local authority budgets, many authorities are turning to economies of scale to maintain quality across housing stocks. We are well placed to exploit this trend by bundling services together for clients.

Our repairs business, which provides services to insurance companies' customers, and private sector housing offering continues to grow and we are creating a sector specialism within our chosen markets.

Healthcare




2014

2013*

Growth


Revenue

£91.7m

£43.0m

113.3%


Operating profit

£12.7m

£5.7m

122.8%


Operating profit margin

13.8%

13.3%

0.5ppts


Order book

£0.5bn

£0.2bn

150.0%


* Enara was acquired on 9 October 2012, these results are from the period from acquisition to 31 March 2013

Since the acquisition of Enara in 2012, which marked our entry into the homecare market, we have rebranded the business as MiHomecare. It now benefits from a more streamlined corporate structure and back office, and full integration into our operations is on track.

MiHomecare provides high quality care at home to people who require help due to illness, disability or infirmity. We deliver around 120,000 hours of care per week to 10,000 people via some 6,000 employees working out of over 57 branches. We offer a range of homecare models to a client base of local authorities (78% of revenue), the NHS (5%) and private individuals (17%). The average length of contract is three years and the business has a retender success rate of over 90%.

During 2013, we were appointed to deliver a Continuing Healthcare programme in Leicestershire as well as framework contracts in Peterborough, Worcestershire and Richmond upon Thames. We also won a two-year contract to provide reablement services and homecare in the London Borough of Camden.

Long-term, our strategy is to complement MiHomecare's domiciliary care operations with capabilities in reablement, complex care, community services and integrated care pathways. The acquisition of Complete Group in January 2014 was an important step in this direction. Complete Group employs some 650 people, including registered nurses, to provide high acuity care at home to around 150 individuals with ongoing complex clinical healthcare needs.





New and retained contract summary

We have continued to build on the excellent client relationships we have in our key markets. This summary shows a selection of contracts that we have retained, expanded and been awarded during the year.


Client

Contract

Timeframe

Total value



0BFinance and professional services








Capita

Retained and expanded a contract to deliver integrated FM

5 years

£110m


PwC

Retained a contract to provide document management and distribution services

3 years

ND


Bank of Ireland

Awarded a significant new contract to deliver facilities management at 350 sites across the Republic of Ireland, Northern Ireland and Great Britain

5 years

ND


Law firm

Retained and expanded a contract to provide a range of business services, including mailroom, printing and other services

5 years

£12m


Law firm

Awarded a new contract to provide business services

3 years

£5m


Stock exchange

Added to our existing work delivering facilities management, with a contract including cleaning, mail, porterage, reception, reprographics, switchboard and waste management

3 years

£4m


Arup

Awarded a new contract for total security management

3 years

ND


1BRetail











Major online retailer

Awarded a new contract to deliver a range of facilities management services

3 years

£47m


Mitchells & Butlers

Awarded a new contract to provide waste management services at 1,600 restaurants throughout the UK

3 years

£38m


Tesco

Awarded a contract to deliver lighting

4 years

ND


Cineworld

Awarded a contract to provide cleaning services at 44 cinemas in the South of England, as well as Cineworld's head office in London

3 years

£9m


Major UK luxury fashion retailer

Gather & Gather awarded a new contract to provide catering services

3 years

£5m


A British shoe manufacturer

A new contract, subject to final negotiations providing bundled FM

3 years

£4m


2BManufacturing and utilities








AWE, the Atomic Weapons Establishment

Retained and expanded our partnership to deliver bundled services

5 years

£50m


Novartis Pharmaceuticals

Retained and expanded a contract for waste management services

5 years

£35m


Luxury car maker

Retained and expanded our contract to deliver a range of cleaning and environmental services

5 years

£25m


Bergen engines

Awarded a new contract to provide facilities management services in Norway

3 years

£8m


BAE Systems

Awarded a new contract for total security management, working within its Real Estate Solutions business

3 years

ND


Springfields Fuels

Awarded a new contract for total security management

7 years

£6m


Kellogg's

Awarded a new contract to provide facilities management services to Kellogg's UK and European head offices in Manchester and Dublin, as well as specialist hygiene services to their manufacturing plant in Wrexham

3 years

£5m


National Grid

A new total security management contract

6 years

£4m


4BTransport and logistics











Network Rail

Retained a contract to deliver integrated FM

5 years

£75m


Heathrow Terminals 3, 4, 5 and the Heathrow Express

Awarded a new contract to provide technical FM

3 years +2 years

£15m (phase 1)


Eurotunnel

Retained and expanded a total security management contract

3 years

£12m


HS1

Awarded a contract to operate Ashford International station on behalf of HS1 Ltd, owner of the UK's first high-speed railway

5 years

ND


FedEx

Renewed a contract to provide security services

3 years

£3m


5BHealth











Four Seasons Healthcare

Commenced a new contract in January to deliver technical FM across its estate of care homes

3 years

£33m


Epsom and St Helier University Hospitals NHS Trust

Awarded a new contract to provide domestic cleaning, portering and catering

5 years

£35m


NHS Foundation Trust

Awarded a technical facilities management contract to deliver a lighting project

6 months

£4m


6BCentral government











The Home Office

Awarded a new contract to manage and maintain two immigration centres

8 years+

3 years

£180m

(phase 1)


The Maritime & Coastguard Agency

A new bundled FM contract

3 years

£4m


7BLocal government











London Borough of Sutton

A new contract delivering technical FM

7 years +

3 years

£15m

(phase 1)


8BEducation










University of Law

Awarded a multi-service contract to include cleaning, security, mechanical and electrical engineering, and pest control services across the University of Law's eight campuses

3 years

ND


Oxford Brookes University

A new cleaning contract

3 years

£1m


9BHomecare










East Sussex County Council

Appointed to provide homecare, reablement and continuing healthcare

5 years

£20m


Worcestershire and Richmond upon Thames

Appointed to framework contracts

5 years

£3.3m


Leicestershire

Appointed to deliver a Continuing Healthcare programme

5 years

£2.5m


Nottinghamshire County Council

Home based care and support services

3 years

£2.5m


London Borough of Bexley

Appointed to deliver reablement care

2 years

£1m


10BSocial housing










Orbit Heart of England

Secured an additional £2.5m pa contract to deliver capital improvement works over eight years. This is in addition to our existing work with the client and brings the total contract value to £152m over eight years

8 years

£20m


Royal Borough of Kingston

Awarded a new contract to manage Kingston's 'Better Homes' programme, including delivering planned work and decorations to properties across the borough

1 year +

1 year

£15m


London & Quadrant Housing Trust

Awarded a new contract to deliver painting services to L&Q's housing stock throughout South East England

6 years +

6 years

£7.5m to £15m


Raglan Housing

Awarded a new contract to deliver painting services to 5,000 properties across Southern England

6 years

£4.5m


ND = Not disclosed









Financial review

Financial highlights

We are focused on delivering long term value for our shareholders. With this objective in mind, we are repositioning our business to focus on markets that demonstrate good organic growth potential, can generate strong margins and have a lower risk profile.

This year's financial results demonstrate the strength of our Facilities Management (FM) and Property Management businesses, which continue to generate strong organic growth, and a high margin contribution from our Healthcare business. Separately, we have also recognised the impact of a number of other exceptional items, including losses resulting from our decision to reduce our exposure to two select areas of our business that no longer meet our growth, risk or return expectations and an accounting credit derived from our actions to de-risk our defined benefit pension exposure.

We delivered strong financial results in the year ended 31 March 2014, whilst also making good progress in repositioning our business. Headline revenue grew by 8.2% to £2,142.6m, headline operating profit grew by 6.0% to £127.5m and headline EPS increased by 5.2% to 24.3p per share, all of which underpinned the recommendation of a final dividend of 11.0p per share, an increase of 6.8% over the prior year.

Our results are supported by a strong balance sheet and impressive cash conversion - qualities that have been consistent features of our results and our management processes.

Statutory and non-statutory measures of performance

Our financial statements contain all the information and disclosures required by the relevant accounting standards and regulatory obligations that apply to the group. We have elected to provide some further disclosures and performance measures in order to present our financial results in a way that best demonstrates the performance of our business.

The results described as 'headline' report the performance of the trading activity of our core Soft FM, Hard FM, Property Management, Energy Solutions and Healthcare businesses along with the central overhead required to manage the group. The 'headline' measure illustrates the performance of the underlying activities of the group, and is a non-statutory measure.

We have separately disclosed any restructuring and acquisition-related items together with the results of the engineering construction business which we are exiting. These items are described as 'other items' within the income statement and in related parts of this Annual Report and Accounts. The 'other items' measure of our results is a non-statutory measure. In the current year, 'other items' comprise:

· The results of the engineering construction business we are exiting

· Exceptional charges in respect of reducing our exposure to certain Energy Solutions contracts

· Acquisition related charges, including amortisation of acquisition related intangible assets

· An accounting credit resulting from a change to future pension obligations under the Mitie Group defined benefit pension scheme (recognised under IAS19).

The sum of the headline and other items columns are the statutory reported results of the business and reflect the full trading result of the group, reported in accordance with IFRS. This presentation is consistent with the way in which we manage and report on our business internally and is consistently applied to enhance the disclosure of our performance.

During the year, the group reported on the activities of four divisions: Facilities Management, Property Management, Energy Solutions and Healthcare. With effect from 1 April 2014 we have provided enhanced transparency of the activities of our previously defined Facilities Management division and now disclose and describe separately the results of our Soft FM and Hard FM divisions. In addition, we have refined our operational structure to further support our clients and to focus the activities of our Property Management division solely on the domestic housing market. The niche property services delivered to commercial clients, which were previously undertaken by Property Management, are now part of the Hard FM division.

Revenue

Headline revenue in the year grew by 8.2% to £2,142.6m (2013: £1,980.6m). This increase is attributable to strong organic growth of 5.2% (£105.5m), the full year impact of the prior year acquisitions of £50.7m, and £5.8m from the in-year acquisitions of UKCRBs and Complete Group.

The revenue attributed to the engineering construction business which we are exiting was £78.5m (2013: £139.9m). This revenue has fallen by 43.9% this year as we near completion on committed work.

Total statutory revenue was £2,221.1m, representing growth of 4.7% on the prior year (2013: £2,120.5m).

Operating profit

Headline operating profit increased by 6.0% to £127.5m (2013: £120.3m). This increase is attributable to organic growth of £2.0m or 1.6%, the full year impact of the prior year acquisitions of £4.8m, and £0.4m from the acquisitions made during the current financial year. The group's headline operating profit margin remains strong at 6.0% (2013: 6.1%).

Statutory operating profit for the group increased by 21.5% to £82.6m (2013: £68.0m), reflecting both the growth in the headline performance of the business and a reduction in other items year on year.

Other items

Other items included in the income statement of £44.9m are set out in Note 3. These other items have been incurred principally as a result of our decision to reposition the group away from the construction related mechanical and electrical engineering contracting business and reduce our exposure to design and build contracts in the Energy Solutions division.

During the year, total losses of £13.6m were incurred in the engineering construction business which is being exited. These losses principally arose on settlement of certain contracts final accounts as business activities cease, which resulted in costs in excess of those anticipated at the end of the prior year. Judgements have been taken on the value and completion timetable for the remaining contracts and on the valuation of contract assets and liabilities at the balance sheet date.

Charges totalling £25.4m were incurred in the year as we sought to reduce our exposure to the design and build element of our Asset Management business, which is now part of the Energy Solutions division. We have reviewed the carrying value of assets on the balance sheet related to the activities of this division and have made contract provisions for the costs to complete certain works.

Acquisition related integration costs incurred during the year in respect of the acquisitions of Enara, Complete Group and UKCRBs were £4.4m (2013: £3.7m) and were broadly in line with their respective acquisition businesses cases. Acquisition costs in the year were £0.7m (2013: £3.2m). The amortisation of acquisition related intangible assets was £11.0m (2013: £10.0m).

Following consultation with members and the restructuring of the future benefits to be offered to members under the group's main defined benefit pension scheme, a credit of £10.2m (£10.5m less costs of £0.3m) has been recognised in the income statement under IAS19 (revised) due to the resultant reduction in scheme liabilities in the Mitie Group defined benefit pension scheme.

Earnings per share

We are focused on growing EPS to support our dividend growth aspirations and as a driver to enhancing shareholder value. Headline basic earnings per share increased by 5.2% to 24.3p per share (2013: 23.1p) and statutory basic earnings per share increased by 13.6% to 13.4p (2013: 11.8p).

The EPS measure is driven by both the average number of shares in issue and the profitability of the group. During the year, the Board approved a share purchase policy to maintain share numbers at a broadly consistent level year on year with the aim of ensuring that the interests of shareholders are not diluted by the issue of shares that support the group's various share schemes, nor by the issue of shares as consideration for earn outs under the Mitie Model. During the year, the group bought back 2.9m shares (2013: nil) at a cost of £7.4m to offset the issue of 2.3m shares in respect of earn outs under the Mitie Model. These shares were subsequently cancelled. To offset shares issued under the various share schemes, and to hedge against shares to be issued in the future under these schemes, 5.8m shares (2013: nil) were bought to be held in Treasury at a total cost of £17.0m and shares to the value of £2.8m (2013: £6.6m) were also purchased and held by the group's Employee Benefit Trust. The group's total return of cash to shareholders through share purchase and buyback activity in the year totalled £27.2m (2013: £6.6m). The average number of shares in issue in the year was 359.9m (2013: 357.7m) following this activity.

Dividends

The group has a strong track record of dividend growth and it is the Board's policy to grow dividends broadly in line with the headline earnings of the group. Accordingly, this year's cash returns to shareholders fully reflect the strong underlying performance of the business and have not been discounted by the impact of non-recurring charges. The full year dividend has been established by the Board to reflect the growth in headline earnings at 11.0p per share (2013: 10.3p per share), an increase of 6.8% and reflecting a cover of 2.2x times headline earnings per share. The final dividend proposed by the Board has increased by 7.0% to 6.1p per share (2013: 5.7p per share). During the year, total dividends of £38.1m were paid to shareholders (2013: £34.9m).

Strong cash conversion and free cash flow

Our profits are strongly backed by cash flows. Cash conversion measures our success in converting operating profit (measured by EBITDA) to cash and reflects both the quality of our earnings and the effectiveness of our cash management activities. Cash inflows from operations decreased by 5.3% to £124.1m during the year (2013: £131.0m), but through our continued focus on working capital management we have delivered excellent conversion of profit (EBITDA) to cash at a rate of 107.3% (2013: 127.8%). On a headline basis our cash conversion is 102.4% (2013: 110.0%); this is after adjusting for the effects of certain charges recognised in other items that will not recur.

During the year, Mitie generated good free cash flow of £72.0m (2013: £87.7m), reflecting the strong cash generation of our business model which requires very low levels of capital expenditure to support its development (1.0% of group statutory revenue (2013: 1.3%)). This has enabled us to maintain very good dividend payments, return cash to shareholders, maintain constant share numbers to protect shareholder returns, and actively invest in organic and acquisitive growth opportunities. The consistency of our cash generation and our ability to provide strong cash returns to shareholders has been a key feature of our results and remains a major focus going forward.

Financing facilities

Mitie has a diverse range of secure funding facilities, with committed banking facilities of £250m which are available until September 2015 and on which the group has a floating LIBOR interest rate exposure. It also has a mix of US private placement loan notes, with a range of tenure which mature between 2017 and 2024 and an interest rate exposure that is predominantly fixed at around 4% per annum. The group also has further overdraft facilities of £40m.

Net debt and gearing

The gearing of the group has remained low and net debt at 31 March 2014 was £186.6m (2013: £192.2m), representing a reduction in our statutory net debt to EBITDA ratio to 1.6x (2013: 1.9x). This conservative gearing level gives us capacity to invest in value creating growth opportunities going forward and to provide strong cash returns to our shareholders.

Net finance costs

Total net finance costs increased by 21.4% to £14.2m (2013: £11.7m) in the year. This increase largely reflects the full year effect of the funding costs associated with the acquisition of Enara Group, which was made mid-way through the prior year. This acquisition was funded through the issue of US Private Placement loan notes with a fixed interest rate.

The total interest cost on US Private Placement loan notes was £9.5m (2013: £5.4m). Other interest and finance charges, net of investment revenue, were £3.3m (2013: £5.5m). The introduction of IAS 19 Revised in the current year has resulted in a new pension related interest charge in the year of £1.4m (2013: £0.8m).

Return on capital employed (ROCE)

It is our aim to enhance our ROCE over time. ROCE is calculated as headline operating profit after tax (adjusted for the proforma, full year effect of acquisitions) divided by capital employed. Capital employed is calculated as net assets excluding net debt less non-controlling interests. Our ROCE for the year was 16.9% (2013: 16.5%).

Our ROCE demonstrates our ability to generate returns from the capital employed by our business. We focus on our ROCE through the management of our asset base, consideration of returns on capital when we invest and through a focus on maximising the profitability of the group. By generating returns that exceed our weighted average cost of capital, currently around 8%, we are ensuring that we add value through our investment decisions.

Pensions

Our financial strength and balance sheet remain unaffected by any significant pensions deficit, with the net deficit of all the defined benefit pension arrangements included on the balance sheet being £19.1m (2013: £29.9m).

The deficit on the group defined benefit scheme at 31 March 2014 was £17.0m (2013: £29.7m). The significant decrease in the deficit was due to the strong performance of scheme assets and the positive impact of amendments made to the terms of the Mitie Group defined benefit pension scheme. Future increases in pensionable pay are now subject to a maximum annual cap equivalent to CPI. The scheme, which only has 240 contributing members and is closed to new entrants, will remain open to future accrual but with a generally reduced level of future benefit increases. This change reduced the scheme's future liabilities, mitigates a potential rise in future contributions and establishes a more affordable scheme going forward. The in-year financial impact of the capping of scheme benefits resulted in a non-cash, non-recurring credit to the income statement (after associated costs) of £10.2m.

The group also makes contributions to customers' defined benefit pension schemes under Admitted Body arrangements as well as to other arrangements in respect of certain employees who have transferred to the group under TUPE. Mitie's net defined benefit pension obligations in respect of schemes in which it is committed to funding amounted to £2.1m (2013: £0.2m).

Mitie contributes to a number of defined contribution pension schemes. Auto-enrolment became applicable for the group from 1 July 2013.

Investment in acquisitive growth

On 14 August 2013, Mitie acquired UK CRBs Ltd ("UKCRBs"), the criminal records checking service, for total consideration of £1.0m.

On 15 January 2014, Mitie acquired Complete Care Holdings Ltd ("Complete Group"), for total consideration of £9.0m.

From the date of ownership, the acquired businesses have contributed headline revenue of £5.8m and headline operating profit of £0.4m, which is in line with our expectations. Acquisition and integration costs of £0.7m and £0.4m respectively were incurred during the year in relation to these acquisitions. In addition, £4.0m of integration costs were incurred in relation to the prior year acquisition of Enara Group (now trading as MiHomecare).

Mitie's entrepreneurial investment model

In August 2013, Mitie purchased certain minority shareholdings of four Mitie subsidiary companies under their respective articles of association and shareholder agreements in accordance with arrangements under our entrepreneurial investment programme known as the Mitie Model. The total consideration for all four purchases amounted to £6.9m being satisfied by £0.8m in cash, and the remaining £6.1m by the issue of 2.3m new Ordinary shares of 2.5p each in Mitie Group plc valued at 267p per share, being the average of the closing middle market price for the five banking days immediately preceding 23 July 2013.

Added (Sept contract) @ 303.46

Trading Statement Monday.

Mitie Group makes positive start to year

StockMarketWire.com

Mitie Group said it has had a positive start to the year with good organic revenue growth driven by new and expanded contracts.

At 30 June 2014, 90% of budgeted revenues for this financial year had already been secured (30 June 2013: 89%), with phasing on a number of contracts expected to result in overall performance being weighted towards the second half of the financial year.

"The financial year has started well. We have a substantial order book as well as a strong pipeline of sales opportunities, giving us confidence that we will deliver good full-year organic revenue growth," the company said.

"We are positive about the range of outsourcing opportunities across our key markets and are confident that we will continue to build on our long track record of sustainable profitable growth."



Story provided by StockMarketWire.com

This has been disappointing so far to date, hovering on support levels. Sticking in though, half year financial results 17th November.

LATEST BROKER VIEWS

Date Broker New target Recomm.
12 Sep Exane BNP... 500.00 Neutral
22 Aug Barclays... N/A Underweight
14 Jul Numis 545.00 Add
11 Jul Oriel... 550.00 Buy
11 Jul Deutsche Bank 440.00 Hold
10 Jul Investec 520.00 Buy
10 Jul N+1 Singer 600.00 Buy
10 Jul Oriel... 550.00 Buy
10 Jul Cantor... 500.00 Buy
10 Jul Deutsche Bank 430.00 Hold
Broker Recommendations for Halfords Group

Ignore the above FAT FINGER :0)

Latest broker rec 320p. May add Monday depending on Market, got to be worth a
punt over 300p. In a range.

Since hitting all time high end of Febuary not the most loved stock year to date. Chart doesn't look great. Broker forecasts are poor. Sitting on a paper loss from 329.0

Last chance saloon added on the spreads @ 293.91

Half yearly report Monday.

Mitie Group plc
Half-yearly financial report for the six months ended 30 September 2014
Strong performance in our core business
Financial highlights
2014 Headline1 Headline1 period on period %
change
2014 Statutory
£1,098.8m £5.9m £(1.3)m 0.5% (1.0)p 5.2p
Revenue £1,095.0m +4.8
Operating profit Profit/(loss) before tax Operating profit margin Basic earnings per share Dividend per share
 Headline revenue growth of 4.8%, of which 3.9% was organic
£64.2m +3.0 £57.0m +3.1 5.9% (0.1)ppt 12.4p +5.1 5.2p +6.1
 Headline operating profit up 3.0% (2.2% organic) and operating profit margin remains strong at 5.9%
 Headline cash conversion of 80.3%2 (2013: 106.7%) and statutory cash conversion of 128.6% (2013: 116.3%); above target KPI of 80%
 Net debt at 30 September 2014 of £233.8m or 1.5x headline EBITDA3 (2013: £221.8m, 1.5x headline EBITDA)
 Strong growth of both headline basic EPS and dividend, up 5.1% and 6.1% respectively
Strong organic growth in our Facilities Management business
 Sector leading organic FM revenue growth of 6.3% and contract retention rate above 90%
 Rated as the top overall service provider* in the UK FM industry for the second year running
 Successful in retaining our integrated FM contract with Vodafone for a further five years, valued at £250m
 Awarded a range of new FM contracts including with Royal Cornwall Hospitals valued at £90m over seven years and Heathrow Airport valued at £40m over three years
 Successfully mobilised our contract with the Home Office to run two immigration centres at Heathrow, in a contract valued at £180m over eight years
 Property Management division will have a more buoyant second half, supported by planned project works
 Challenging first half in our Healthcare division, however we remain confident of the long-term growth
prospects in this market
Exit from loss-making businesses complete this financial year
 The exit from our mechanical and electrical engineering construction business will be complete in this financial year; losses of £6.9m incurred in the period and we expect this to range between £11m and £15m for the full year (FY2014: £13.6m)
 We have assessed all remaining risk on the design and build contracts left in our Asset Management business; exceptional charges of £45.7m incurred (FY2014: £25.4m), which cover all balance sheet exposures and all material expected future costs
 Beyond these amounts, we expect no further exceptional charges from either of these businesses Well positioned for the long-term
 Order book remains healthy and now stands at £8.5bn (March 2014: £8.7bn); 98% of 2014/15 budgeted revenue secured (prior year: 99%) and 72% of 2015/16 forecast revenue secured (prior year: 74%)
 Bid pipeline has grown by 20% to £9.8bn (March 2014: £8.2bn) and continued investment being made in the bidding, strategic sales and operational management capability across the group
 Robust balance sheet and strong financial position will support growth Ruby McGregor-Smith CBE, Chief Executive of Mitie, commented:
“We have delivered a strong performance in our facilities management business during the first half of the year, and we expect to gain further positive momentum through the rest of the year.
“We have significantly de-risked our group by finalising the exit from our loss-making businesses. We are focused on investing in and maximising the long-term growth potential of our facilities management, property management and healthcare businesses.
“Our order book and sales pipeline are substantial. We are in a good position to deliver growth and look ahead with confidence.”

Mitie Group plc
Half-yearly financial report for the six months ended 30 September 2014
Strong performance in our core business
Financial highlights
2014 Headline1 Headline1 period on period %
change
2014 Statutory
£1,098.8m £5.9m £(1.3)m 0.5% (1.0)p 5.2p
Revenue £1,095.0m +4.8
Operating profit Profit/(loss) before tax Operating profit margin Basic earnings per share Dividend per share
 Headline revenue growth of 4.8%, of which 3.9% was organic
£64.2m +3.0 £57.0m +3.1 5.9% (0.1)ppt 12.4p +5.1 5.2p +6.1
 Headline operating profit up 3.0% (2.2% organic) and operating profit margin remains strong at 5.9%
 Headline cash conversion of 80.3%2 (2013: 106.7%) and statutory cash conversion of 128.6% (2013: 116.3%); above target KPI of 80%
 Net debt at 30 September 2014 of £233.8m or 1.5x headline EBITDA3 (2013: £221.8m, 1.5x headline EBITDA)
 Strong growth of both headline basic EPS and dividend, up 5.1% and 6.1% respectively
Strong organic growth in our Facilities Management business
 Sector leading organic FM revenue growth of 6.3% and contract retention rate above 90%
 Rated as the top overall service provider* in the UK FM industry for the second year running
 Successful in retaining our integrated FM contract with Vodafone for a further five years, valued at £250m
 Awarded a range of new FM contracts including with Royal Cornwall Hospitals valued at £90m over seven years and Heathrow Airport valued at £40m over three years
 Successfully mobilised our contract with the Home Office to run two immigration centres at Heathrow, in a contract valued at £180m over eight years
 Property Management division will have a more buoyant second half, supported by planned project works
 Challenging first half in our Healthcare division, however we remain confident of the long-term growth
prospects in this market
Exit from loss-making businesses complete this financial year
 The exit from our mechanical and electrical engineering construction business will be complete in this financial year; losses of £6.9m incurred in the period and we expect this to range between £11m and £15m for the full year (FY2014: £13.6m)
 We have assessed all remaining risk on the design and build contracts left in our Asset Management business; exceptional charges of £45.7m incurred (FY2014: £25.4m), which cover all balance sheet exposures and all material expected future costs
 Beyond these amounts, we expect no further exceptional charges from either of these businesses Well positioned for the long-term
 Order book remains healthy and now stands at £8.5bn (March 2014: £8.7bn); 98% of 2014/15 budgeted revenue secured (prior year: 99%) and 72% of 2015/16 forecast revenue secured (prior year: 74%)
 Bid pipeline has grown by 20% to £9.8bn (March 2014: £8.2bn) and continued investment being made in the bidding, strategic sales and operational management capability across the group
 Robust balance sheet and strong financial position will support growth Ruby McGregor-Smith CBE, Chief Executive of Mitie, commented:
“We have delivered a strong performance in our facilities management business during the first half of the year, and we expect to gain further positive momentum through the rest of the year.
“We have significantly de-risked our group by finalising the exit from our loss-making businesses. We are focused on investing in and maximising the long-term growth potential of our facilities management, property management and healthcare businesses.
“Our order book and sales pipeline are substantial. We are in a good position to deliver growth and look ahead with confidence.”

Ouch!

Third attempt since November to break resistance @ 385p. Not holding my breath :0(

Looking to close gap to 290p, question is can it push on? place your bets.

Nearly there.

Resistance 310 Support 270p (ish).
Pr-Close trading update 31st March.
Divi has risen from 6p 2008 t0 14p forecast 2014.

StockMarketWire.com
Mitie Group anticipates FY revenues to be broadly in line with market expectations, driven by its facilities management (FM) business, which is performing strongly.

The extension of Mitie's integrated FM contract with Lloyds Banking Group in December was particularly significant; this contract now continues until 2022.

"Our homecare and social housing businesses have faced further pricing pressures in the second half of the year due to the impact of local authority spending cuts. We continue to invest in and support these businesses as we are confident of longer-term opportunities," the company said.

"As a result of the market pressures in the homecare and social housing businesses we expect our full year headline operating profit to be slightly below current market expectations."

"The exit from our mechanical and electrical engineering construction business is complete. We now expect total losses for the year to range between £15m and £16m, and there will be no further exceptional items relating to this business next year or beyond.

"In our Asset Management business, where we have assessed all remaining risk on the exit from design and build contracts, there will be no further charges beyond those reported at the half year."

Outlook
"Mitie is in a strong position. We have repositioned the business and lowered our risk profile, having completed the exit from our loss-making mechanical and electrical engineering constructing and asset management businesses. Facilities Management now represents c.85% of group revenue, property management c.10% and homecare c.5%.

"Looking forward, our focus is on generating profits backed by strong cash conversion, maintaining margins in our target range and continuing to grow the dividend. Our balance sheet remains robust and net debt is at a comfortable level. We are confident that we will continue to build on our long track record of sustainable profitable growth."

Thanks Harry, beat me to it.

LATEST BROKER VIEWS

Date Broker New target Recomm.
18 May Canaccord... 320.00 Buy
18 May Investec 360.00 Buy

StockMarketWire.com
Mitie said the financial year has started well and that it has a substantial order book as well as a strong pipeline of sales opportunities and positive momentum. It was confident of good full-year organic revenue growth.

"We are encouraged by the range of outsourcing opportunities across our key markets and are confident that we will continue to build on our long track record of sustainable profitable growth," the company said in a statement.

Mitie said the good organic revenue growth was driven by new and recently expanded contracts. 94% of budgeted revenues for this financial year have already been secured.

"In line with historic trends, overall performance will be weighted towards the second half of the financial year, supported by positive momentum on organic growth," it said.

"Mitie is now a purely services business, operating primarily in our core market of UK facilities management (FM), which is performing strongly. As guided, there are no further exceptional costs relating to our exit from the construction market.

"Our social housing business is performing well. The homecare market remains challenging, however we are encouraged by the recent award of two significant contracts, responsibly procured at sustainable rates."

Nice wee spike on the above. Watching.

What a roller coaster ride this stock has been on for the last two years, last month been on a bender. Getting close to all time high. Interim 23rd Nov. No broker upgrades for a while, looking over bought. Place your bets for a breakout or a stonking short? Watching.

LATEST BROKER VIEWS

Date Broker New target Recomm.
30 Sep Canaccord... 320.00 Buy
29 Sep Liberum Capital 286.00 Hold
16 Sep Jefferies... 285.00 Hold
13 Aug Liberum Capital 286.00 Hold
12 Aug Liberum Capital 286.00 Hold
18 Jun Barclays... 297.00 Equal weight
28 May Liberum Capital 286.00 Hold
28 May RBC Capital... 350.00 Outperform
22 May Liberum Capital 286.00 Hold
19 May Numis 245.00 Reduce
Broker Recommendations for MITIE Group

Mitie Group hikes FY pretax profit by 133.3%

StockMarketWire.com

Mitie Group has hiked its FY pretax profit by 133.3% to GBP96.8m, from GBP41.5m. Revenue was at GBP2.2bn, from GBP2.3bn. Dividend came in at 12.1p a share, from 11.7p.

CEO Ruby McGregor-Smith commented:

"Mitie has had a good year, with strong margins and profits. I am delighted that the dividend is increasing for the 27th consecutive year.

"We are a pure services business with a strong position in our chosen markets. We operate long-term contracts for a blue chip client base and are well diversified across the private and public sectors.

"Our business model is flexible, resilient, low risk and has proven to be responsive to client needs and market conditions over three decades.

"We continue to see a range of good outsourcing opportunities across our key markets and anticipate modest growth in the coming year. We remain positive about the group's prospects for the future."

HIGHLIGHTS:

h Good performance in Facilities Management business (84% of group revenues); very strong operating profit margin of 6.3%

h Market leading integrated FM business accounts for one-third of revenues and after a successful period of retentions and extensions, have no major rebids until 2019; this underpins the strength of our long-term prospects

h Revenue growth in FY16 was impacted by lower discretionary and project spend, as well as some delayed starts on new contracts

h Recent flow of new FM contract awards will see a return to modest revenue growth in FY17

h Property Management business (13% of group revenues) delivered good growth and substantial margin improvement

h Recovery underway in Healthcare business (3% of group revenues)





Story provided by StockMarketWire.com

A profit warning sent outsourcing giant Mitie (MTO) spiralling 25.6% to 200p. It blamed the trading shortfall on 'uncertainty both pre and post the EU referendum'. It said operating profit is expected to be below management's expectations due to less project work volumes and spending by clients, pricing and cost pressure.

Stay well clear these profit warnings usually come in threes.

Outsourcing firm Mitie has warned its operating profits will be 'materially below' previous expectations amid 'uncertainty' in the run up to and after the EU vote.

In reaction to the full year profit warning, the FTSE 250-listed firm lost around a quarter of its stock market value, dropping 24.5 per cent, or 65.8p to 203.2p in mid morning trading.

The Bristol-based firm, whose clients include Rolls-Royce and the Home Office, said lower growth, higher staff costs, public budget cuts and 'significant economic pressures' were taking their toll.

Earlier this year, Mitie said the build-up to June's European Union membership vote had prompted a number of clients to delay or cancel projects until after the vote.

It added that the introduction of the national living wage in April would add to costs over the coming year.

In a trading update today, the group said its expects its first half revenues to be 'modestly lower' and operating profit to be 'very significantly lower' compared to a year earlier.

The company added: 'Operating profit for the full year is now expected to be materially below management's previous expectations as a result of a continuation of the pressures experienced in the first half and further one-off costs of organisational change associated with our cost efficiency programmes, which are expected to total up to £10million in the year.'

It continued: 'We are finding that the recent economic uncertainty is currently driving clients to renew or extend larger contracts with existing suppliers including Mitie, a trend we have seen over the last 18 months, and to defer investment decisions.'

Mitie's lowered expectations came as a report also suggested that UK business confidence has plummeted to a four-year low amid economic uncertainty and a decline in demand following the EU referendum.

According to Lloyds Bank's Business in Britain report, firm's expectations that sales, orders and profits will grow over the next six months have slipped to 12 per cent, down from 38 per cent in January.

It said more than a quarter of companies cited economic uncertainty as the main threat to growth over the next six months, while 18 per cent said the biggest danger came from a drop in demand.

Tim Hinton, managing director of mid markets and SME banking at Lloyds, said the blow to confidence since January's report should be viewed in the context of recent economic and political shocks.

He said: 'The EU referendum vote has introduced a level of uncertainty for companies as the UK decides on the best model for its future relationship with the EU, and this is likely to continue for the foreseeable future.

'Whilst sentiment has fallen to a four-year low, it remains well above the lows reached during the global financial crisis of 2008/9.'

The report, which collates the views of around 1,500 businesses, said expectations for an exports boost have also waned, with hopes of a total rise in global export sales dropping 15 points to 20 per cent.

The plunge in the value of the pound to 31-year lows following Britain's vote to leave the EU has made UK goods more competitive on the global market, helping exports to grow.

Employment also remained under pressure, with the number of firms expecting to recruit more staff over the next six months dropping for the fourth consecutive survey.

Mitie awarded £60 million contract with Manchester Airports Group


Mitie, the facilities management (FM) company, has been awarded a new five-year FM contract with Manchester Airports Group (MAG), consolidating FM services across three airports into one integrated contract.

MAG is the UK's leading airport group, serving over 50 million passengers and handling over 670,000 tonnes of air freight every year, through its ownership and operation of Manchester, London Stansted, East Midlands and Bournemouth airports.

Mitie has been providing a range of FM services for Manchester Airport since 2008, including cleaning, waste management, gritting and snow clearance. The new contract - valued in excess of £60m over the duration - will see Mitie deliver additional pest control and landscaping services at Manchester Airport, as well as, for the first time the full range of soft services at Stansted and East Midlands Airport.

Mitie will also provide hard services including mechanical and electrical maintenance, fixed wire testing, plumbing, life safety systems, building management systems and lightning protection systems across all three airports.

Andrew Cowan, CEO of London Stansted Airport and sponsor of the contract, said: "We have been working with Mitie for over seven years and it is a great credit to their team that we are developing our long-standing relationship with this new contract.

"Mitie was awarded the work after a rigorous and technical tender process. Mitie has extensive experience in the sector, and an ability to provide national 24/7 coverage underpinned by advanced technology."

Phil Holland, Managing Director at Mitie said: "We are proud to be building upon our relationship with MAG through this new and consolidated contract.

"Our long running relationship is a testament to our market leading airport experience and we are confident that our expansive technology-led service capability will assist MAG in providing a world-class experience for its passengers and airline partners."

Another profit warning then.

well-flagged in w/e press, so quite surprising to see good recovery this morning

Latest director deals:-

22 Nov 2016 MITIE Group PLC Phil Bentley 1,852,656 194 3,600,081

Bounced from eight year low :0)

Still moving albeit on low volume so far today.

StockMarketWire.com
Mitie Group has disposed of its UK social care division, comprising the domiciliary care and homecare businesses, Enara Group Ltd and Complete Care Holdings Ltd, to Apposite Capital LLP for £2 cash.

In addition, Mitie would contribute £9.45m to the funding of trading losses and the cost of the turnaround plan. This would be paid in two tranches with the first (£5.4m) on April 1 and the second (£4.05m) on July 1.

Peel Hunt today (01/03/17) reaffirms its sell investment rating on MITIE Group PLC (LON:MTO) and raised its price target to 175p (from 166p).

Jefferies International today (07/03/17) downgrades its investment rating on MITIE Group PLC (LON:MTO) to underperform (from hold) and cut its price target to 175p (from 195p).

RNS Number : 9756D
MITIE Group PLC
03 May 2017

3rd May 2017
Mitie Group plc

Fiscal Year 2017 Update following Accounting Review

Mitie Group plc ("Mitie"), the facilities management, connected workspace and professional services business, today issues the following update for the financial year ended on 31st March 2017 (FY'17), following the policies and balance sheet review (the "Accounting Review") undertaken by the Company and KPMG.

The outcome of the Accounting Review was presented to the Audit Committee and Board on 2nd May. All numbers in this statement remain subject to audit.

Trading performance, before the impact of the Accounting Review, is largely in line with previous expectations and referenced in our January trading update. Revenues remained flat in FY'17 compared to FY'16, reflecting what has been a challenging environment.

Accounting Review

As announced in January, the Company has reviewed all major balance sheet items to provide confidence that all relevant accounting standards are appropriately reflected in its financial reporting. This work was complemented by KPMG's review, which covered certain aspects of the material balances of accrued income, mobilisation costs, percentage of completion accounting and the recoverability of trade receivables, as well as the carrying value of certain other assets.

KPMG confirmed that customer contract related methodologies and policies used by Mitie comply with all relevant accounting standards. However KPMG commented that our application of percentage of completion accounting and costs of contract mobilisation is less conservative, albeit still justifiable, than others in the market.

In response to these findings, and in addition to the £14m of one-off charges identified in the January trading update, the Board currently expects to write down its balance sheet by between £40m and £50m.

Of this total, only £6m relates to provisions which are expected to result in cash outflows in FY'18, with the majority being non-cash write-downs of trading assets, and having no impact on the future profitability of the business.

In addition, the review has identified a number of material errors which may necessitate restating our FY'16 accounts. This would likely result in an increase in FY'17 reported results of between £10m and £20m.

The costs of change have increased by £5m to £15m since January as some further 160 roles have been removed in the first wave of a new cost reduction programme, full details of which will be shared at the time of our Preliminary Results.

Cash and covenants

Our year-end net debt position at 31st March 2017 was £146m (2016: £178m), and we currently expect to comply with the conditions of our debt covenants as measured at that point. However, as the Company expects to have only limited headroom under its covenants as at 31st March 2017, the Company intends to engage with its lenders with a view to negotiating an amendment to our banking covenants so as to permit further one-off charges and thereby remove the risk of a possible technical breach. These changes would also enable the Company to review its accounting policies in respect of percentage of completion contracts and mobilisation and take a more cautious approach in advance of adopting IFRS15 Revenue from Contracts with Customers.

Extraordinary General Meeting ("EGM")

As a result of the one-off asset write downs and adjustments to reserves in FY'17, the Board is proposing a technical adjustment to the Company's articles of association, raising borrowing limits from 2x reserves to a fixed amount of £1.5bn. This will be put to an EGM on 12th June 2017. Formal notice of the EGM will be issued shortly.

Outlook

The Board approved Mitie's FY'18 Annual Operating Plan on 14th March 2017. This plan is in line with previous expectations.

Phil Bentley, CEO said:

"FY'17 has undoubtedly been a challenging year but Mitie remains a strong and successful business, and is continuing to deliver for our customers.

Whilst these accounting adjustments in FY'17 affect our reported profits, they do not affect the underlying strength of our business.

Since my appointment as CEO in December, we have worked hard to build a new "Connected Workspace" strategy, with clear deliverables and measurements for Customers, Costs, People and Technology. Mitie has a well-diversified portfolio of high quality customers and an outstanding range of capabilities. We have appointed a new Executive Leadership Team - with a new way of working - and we are confident the business will generate significant shareholder returns over the forthcoming years."


Full year results for the twelve months ending 31st March 2017 and an update on our strategy will be announced on 12th June 2017. This is later than originally planned to allow sufficient time for the complex changes outlined above to be processed and for our auditors to conclude their work.

-Ends-

This announcement includes inside information.
For further information, contact:

John Telling
Group Corporate Affairs Director, Mitie Group plc
T: +44 (0) 203 123 8673 M: +44 (0) 7979 701 006 E: john.telling@mitie.com

Anna Chen
Investor Relations Manager, Mitie Group plc
T: +44 (0)203 123 8675 M: +44 (0)7818 527 265 E: anna.chen@mitie.com

Having a fourth attempt to break 250p, preliminary statement of annual results next Monday12th June. Final Ex -Divi 22nd June. No idea what the SP is doing so high but if it can break 250p could reach 280p. Place your bets.

RNS Number : 7441H
MITIE Group PLC
12 June 2017

Mitie Group plc

Moving "Beyond FM…to the Connected Workspace", following a year of change

Preliminary results for the year ended 31 March 2017
Group Results
Continuing operations
FY17
FY16
Restated1
YoY change
Adjusted2



Revenue
£2,140.0m
£2,133.4m
0.3%
Operating profit
£82.0m
£95.2m
-13.9%
Reported



Revenue
£2,126.3m
£2,146.9m
-1.0%
Operating (loss) / profit before other items
£(6.3m)
£113.9m
-105.5%
Operating (loss) / profit
£(42.9m)
£107.6m
-139.9%
Basic (loss) / earnings per share
(14.7p)
20.1p
-173.1%
Operating cash flow
£151.1m
£114.6m
31.8%
Net debt
£147.2m
£178.3m
-17.4%
Dividend per share
4.0p
12.1p
-66.9%
Order book3
£6.5bn
£6.6bn
-1.0%
Sales pipeline4
£8.7bn
£7.9bn
10.1%

Intraday reached 288.50, see how it opens tomorrow but thinking short trade now.

That was a good call on Thursday, Chris nice one

Cheers George.

I think this is over bought now, been a good rise. Still, intra day reached 296.80, pulled back below 290p. Final Divi next Thursday what happens on Friday will be interesting to judge whether to stay long or go short hopefully, mind a weeks a long time for some traders.

On watch list, next Friday 16/03 FY 2018 pre-close announcement.

07/6 - Posting of the FY 2018 Annual Report.

Had a torrid time to put it mildly in February reached a ten year low, any hope of a recovery looks slim. Been a favourite trading stock of mine for a few years spread betting in both directions. See how it opens on Monday for a punt long on the spreads.

LATEST BROKER VIEWS
Date Broker New target Recomm.
23 Jan Peel Hunt 179.00 Reduce
19 Dec Peel Hunt 205.00 Hold
15 Dec Numis 175.00 Reduce
5 Dec Liberum Capital 270.00 Buy
24 Nov Liberum Capital 270.00 Buy
21 Nov Jefferies... 290.00 Buy
20 Nov Peel Hunt 253.00 Hold
20 Nov Liberum Capital 300.00 Buy
14 Nov Peel Hunt 253.00 Hold
10 Nov Liberum Capital 300.00 Buy

16 March 2018

Mitie Group plc

Pre-close Statement

Mitie Group plc ("Mitie" or "the Group"), the UK's leading facilities management business, today publishes its pre-close statement for the financial year ending on 31 March 2018 ("FY17/18"). Mitie will be in a close period between 1 April 2018 and the scheduled publication of its financial and operational results for FY17/18, on Thursday, 7 June 2018.

Highlights

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Modest growth in overall sales

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Debt levels comfortably within banking covenants

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Operating profit in line with our expectations, slightly down on previous year due to investment in customers, IT and capability

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Cash generation impacted by higher costs of change, reduced reliance on invoice discounting and normalisation of our balance sheet

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Higher total cost savings expected from Transformation Programme, with associated higher cost of change

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Technology-led Connected Workspace strategy helping to drive top-line growth

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Improving operational delivery to clients, with better year-on-year Net Promoter Scores



Project Helix

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On track to exceed 3-year cost targets

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Finance transformation largely concluded, with back-office operations outsourced

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Investments made in customer service and sales capability; commercial reorganisation complete

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Cleaning workflow programme concluded with new IT solution in operation

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HR transformation launched across Group with IT provider mobilised

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New Group legal structure with effect from 1 April

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Engineering transformation scoping begun, focused on Asset & Workflow Scheduling



Phil Bentley, CEO, said:

"We are one year into our Transformation Programme and we are making progress. Our order book is solid and revenue is up year-on-year. Project Helix is starting to deliver cost savings. We have upgraded our sales and customer service capability, and we continue to invest in talent and technology.

"The liquidation of Carillion has raised some fundamental questions about the outsourcing industry. Managing the buildings and the workplaces of our clients is a complex business, but our expertise, scale and focus continue to be valued by our clients.

"We remain focused on delivering exceptional FM services and rolling out our Connected Workspace technology to provide advanced analytics, delivering trusted advice and valued insights. The year ahead will remain challenging as we continue to transform Mitie, but we expect to see modest revenue growth with improved profits and cash flow generation."



Trading update

Revenue

Revenue growth is expected to be in the range of 2.0-2.5% at £2.2 bn. This includes the Property Management division, which has been re-incorporated into the Group figures after the withdrawal from sale announced on 5 December 2017.

This year-on-year organic growth has been driven by solid performances across all divisions. In particular, strong project work volumes in Engineering Services, increasing technology content in Security and new business wins in Care & Custody have contributed. Cleaning revenues have stabilised, having recently declined. This has been partially offset by weak performances in Property Management and contracts losses early in 2017 in Waste, part of Professional Services.

Order book

The most significant win in recent months was the detention and escorting contract in Care & Custody, valued at £525 million over 10 years - doubling the size of the division. The division was also successful in securing a number of other significant wins, in custodial services and forensic medical examiner services.

In Cleaning, we won a significant contract with an NHS Trust, and added services at Heathrow Terminal 5.

Engineering Services won a multi-year contract with a major food retailer, a 3-year extension with Heathrow Airport, and further work with the Scottish Government. We also retained a significant contract with an NHS Trust. This offsets the previously announced loss of a top 20 contract and of another due to a merger of a client.

In Security, we have recently won a new customer in the Royal Academy, as well as a technology-led contract at a global financial organisation. Our Fire and Security Systems, Document Management and Vetting businesses have experienced a solid stream of business opportunities.

Professional Services continues to win consultancy and project management work, as our Connected Workspace offer moves from pilot phase into deployment. We opened our Technology Centre in Bracknell and continue to work with various world-class technology partners.

Catering has won a contract with a major online retailer in Ireland and a contract for a major music festival in the UK, which will partially offset the loss of a contract with a UK retailer.

Property Management, despite facing difficult trading conditions, has won a large multi-year contract for social housing maintenance and a number of contracts within its painting business.



Transformation Programme (Project Helix)

We remain focused on reducing operating costs, increasing productivity and efficiency through simplification, rationalisation and automation. While the transformation of a large people-led organisation such as Mitie is not linear, we are making solid progress and the medium-term opportunities are significant.

We expect the Helix programme to conclude by summer 2020, delivering c.£50m of overall run-rate savings (c. 10% uplift on previous guidance), by March 2020.

We expect costs associated with Project Helix in FY17/18 to be c. £35m, compared with our previous guidance of £24m. The main drivers of uplift are acceleration of our property portfolio consolidation and higher transformation-related consultancy support. Incremental costs include those associated with de-risking the year-end in our finance transformation, retaining on-shore capabilities for longer than originally anticipated.

Cash and Covenants

We expect average daily net debt to be down £50m year-on-year and we continue to reduce our reliance on period-end invoice discounting. As a result of our more conservative approach and our commitment to normalising our balance sheet by reducing the company's reliance on non-committed facilities, we expect period end net debt to be £50-£70m higher than last year. We expect to continue to comfortably operate within our banking covenants.



Sector backdrop

The Facilities Management sector has been in the spotlight in the last few months. Mitie has actively engaged with its customers and stakeholders during this period, providing context and assurances. We have seen limited impact on our operational business as a result of competitor or industry activity, and we remain fully focused on our transformation programme and the execution of our strategy. Potential Brexit impacts are expected to be minimal, though could be felt in wage inflation and we have budgeted for increasing remuneration costs in FY18/19.



Full year results

The Group will announce its full-year 2018 results on 7 June 2018.

The full impact of IFRS15 is still being assessed: further analysis will be provided at the year end.



Analysts and investors conference call

Mitie will be hosting a conference call at 08:00am GMT on Friday, 16 March 2018 for analysts and investors with Phil Bentley, CEO, and Paul Woolf, CFO.

I wasn't tempted to take a position this week long or short, that magic word CHALLENGING in todays statement doesn't breed confidence.

StockMarketWire.com
Facilities management provider Mitie Group said UK authorities were no longer investigating the company's disclosure practices.

Last August, Mitie said the Financial Conduct Authority had commenced an investigation related to the timeliness of a profit warning announced in September, 2016.

It was also investigating the manner of preparation and content of the company's financial information, position and results.

'On 26 June 2018, the FCA advised the company that it was discontinuing its investigation into the company,' Mitie said in a short statement.