Mitie Share Price (MTO)

Are we going to see £3 per share again this year? Mitie has been doing really well and I hope we will see £2.9 + p/s sooner than later! Best luck to all holders.

The UK economy has not improved and many companies in the private sector continue to tread water at best. Faced with tough market conditions and an ever-increasing need to cut costs and improve efficiency, the outsourcing of non-core services is an attractive option for many of these companies. Central government and local authorities are also cutting costs wherever possible and the public sector continues to offer significant opportunity. This is particularly true in the justice, social housing, education and health sectors, all areas where we are active. Outsourcing is an industry that grew out of response to recession, and has continued to evolve in response to economic pressures. According to a report published in November 2012 by Oxford Economics for the Business Services Association, the total value of outsourcing in the UK is currently estimated to be in the region of £199 billion, with a 64%-36% split in favour of the private rather than the public sector. This equates to almost 7.5% of the total economy-wide output, but perhaps more importantly, the report found that the outsourced service sector pays 9.5% of government tax revenues and employs 10.5% of the UK workforce.

We have made significant progress as a result of the key strategic steps taken during the year, and are in a strong position to grow in our chosen outsourcing markets. Our focus remains on achieving organic growth in our primary outsourcing markets in the UK, supplemented by selective acquisitions and the development of our integrated business model overseas. Financially robust, we have a clear strategy for the development of our business and are confident that we will continue to build on our strong track record of sustainable, profitable growth.

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)

looks like decent hold in overbought market...rel value if you were

But the firm added that going forward, it would actively seek to sell off cyclical businesses which were unable to reach margin targets in the long term. "Over the last five years we have seen fundamental changes in our sectors which in some cases we believe are structural," Mitie said. "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."