Mitie Group (MTO)

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FTSE 250

118.80p
   
  • Change Today:
      1.60p
  • 52 Week High: 124.20
  • 52 Week Low: 91.90
  • Currency: UK Pounds
  • Shares Issued: 1,327.67m
  • Volume: 2,726,678
  • Market Cap: £1,577.28m
  • RiskGrade: 216

Mitie first-half profit drops despite revenue rise

By Michele Maatouk

Date: Monday 20 Nov 2017

LONDON (ShareCast) - (ShareCast News) - FTSE 250 outsourcer Mitie posted a drop in profit for the first half on Monday despite a rise in revenue, as it continues to invest in its cost-saving programme.
In the six months to the end of September, pre-tax profit fell to £6.1m from £15.8m the year before, on revenue of £959.7m, up from £922.6. Operating profit from continuing operations on a statutory basis dropped to £14.8m from £23.9m in the first half of last year, mostly due to investment in the group's cost-saving programme, Helix.

Meanwhile, the interim dividend was cut 66.8% to 1.33p per share.

The company said it has renewed and won new contracts across its businesses, with especially good performances from Security, where revenues are up 9.9% and Care & Custody, where revenues are up 28.6%. It has also lost a number of contracts as part of the normal ebb and flow of the business and one notable contract in Engineering Services.

New wins across the business include a new contract award from a multinational grocery retailer, a global leader in e-commerce and cloud computing, and a major homewares and household goods retailer.

Chief executive Phil Bentley said: "This has been a period of transformation and investment for Mitie. We have had a solid six months with a modest uptick in revenue. We have continued to build foundations, take out costs, simplify systems and processes, invest in our capabilities and put the customer at the heart of our organisation.

"We have had a number of good recent wins, we have attracted some high-quality talent to the business, our Connected Workspace proposition is gaining traction and we are already seeing the benefits of our HR and IT change programmes. We have much more to do, but we are very much on track."

Earlier on Monday, the Financial Reporting Council said it was opening an investigation under its accounting scheme in relation to the preparation and approval of Mitie's accounts for the year ended 31 March 2016. Mitie later clarified that the investigation is into individuals and not the company itself.

"The FRC's announcement failed to state this expressly, which has caused a number of market commentators to incorrectly assume that Mitie is being investigated," the company said.

"We can confirm that this investigation is not into Mitie itself and that Mitie is not the subject of any new FRC investigation. We can further confirm that the investigation does not relate to any current directors of Mitie, any former non-executive directors of Mitie or Sandip Mahajan (who recently stepped down from his role as group CFO)."

At 1410 GMT, the shares were up 1.2% to 227.50p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Mitie Group Market Data

Currency UK Pounds
Share Price 118.80p
Change Today 1.60p
% Change 1.37 %
52 Week High 124.20
52 Week Low 91.90
Volume 2,726,678
Shares Issued 1,327.67m
Market Cap £1,577.28m
RiskGrade 216

Mitie Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
48.78% below the market average48.78% below the market average48.78% below the market average48.78% below the market average48.78% below the market average
35.48% below the sector average35.48% below the sector average35.48% below the sector average35.48% below the sector average35.48% below the sector average
Price Trend
83.01% above the market average83.01% above the market average83.01% above the market average83.01% above the market average83.01% above the market average
70.00% above the sector average70.00% above the sector average70.00% above the sector average70.00% above the sector average70.00% above the sector average
Income
31.13% above the market average31.13% above the market average31.13% above the market average31.13% above the market average31.13% above the market average
30.16% above the sector average30.16% above the sector average30.16% above the sector average30.16% above the sector average30.16% above the sector average
Growth
81.53% above the market average81.53% above the market average81.53% above the market average81.53% above the market average81.53% above the market average
79.59% above the sector average79.59% above the sector average79.59% above the sector average79.59% above the sector average79.59% above the sector average

What The Brokers Say

Strong Buy 4
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Mitie Group Dividends

  Latest Previous
  Final Interim
Ex-Div 20-Jun-24 14-Dec-23
Paid 05-Aug-24 31-Jan-24
Amount 3.00p 1.00p

Trades for 24-Jun-2024

Time Volume / Share Price
14:19 5 @ 119.00p
14:17 568 @ 118.80p
14:17 1,352 @ 118.80p
14:17 5,039 @ 118.80p
14:17 248 @ 118.80p

Mitie Group Key Personnel

CEO Phillip Bentley

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