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/

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