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/

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.