Mitie home care probe hit by delay amid damaging allegations over treatment of staff: Mitie's investigation into its home care division is taking longer than expected as the firm tries to get to the bottom of damaging allegations about the way it treated staff
1 Apr '15
Mitie issues profit warning: Outsourcing group Mitie [LON:MTO] issued a profit warning as increased competition for local authority housing maintenance contracts and a tough homecare market meant profits are now lower than expected, sending shares more than 8% lower at one point. The FTSE 250-listed company also said in its pre-close update that the cost of closing its mechanical and electrical engineering business could reach a maximum of £16 million during the year to the end of March Broker Peel Hunt expects overall pretax profits of £95.2 million on revenue of £2.3 billion, giving 20p in earnings per share for the year to the end of March. Market consensus in November last year was for £118 million in pretax profits. The company still has a stable and cash-generative business in long-term maintenance contracts with blue chip clients such as Lloyds Banking Group and hospital trusts. These contracts generate about 85% of group revenue. However, growth could be slow as the half year results showed the order book was down to £8.5 billion from £8.7 billion. Mitie should be able to ride out this tough trading over the long term, but the shares, on 13 times forecast earnings and paying a prospective dividend yield of 4%, hold few attractions. We said avoid the shares back in August 12, at 305.8p, since when they have fallen by 9%. The update showed few signs of a turnaround, so the recommendation remains — avoid. Mitie at 276p-16.4p. Questor Says “Avoid”.
3 Mar '15
Next few days will tell whether MTO underwent a false breakout from its 200 day MA.
25 Feb '15
Breaking 200 day MA
Today MTO is breaking its 200 day MA. Good news for buyers, but it also has to break major pivot high at 304p to make real headway. Bullish.
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