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/

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