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/

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)