Mitie Share News (MTO)

Strategic outsourcing specialist MITIE´s financial year is progressing well, it said Monday. Furthermore, the company sees itself as 'well-positioned' to deliver good organic growth and strong margins in its facilities management and healthcare segments, although it has experienced some delays in the start of new contracts in its property management arm, the company said in an interim trading statement (IMS) for the third quarter of its fiscal year.Levels of bid activity at its facilities management division saw an uplift during the third quarter in both the public and private sectors. The indications on demand from the public sector are of particular interest to some investors, given ongoing issues around rivals Serco and G4S. Management also highlighted that it continues to enjoy a strong balance sheet. Hence, it is able to invest in organic growth and take advantage of value-creating opportunities as they arise.Furthermore, MITIE is negotiating changes with the members of its main defined benefit pension scheme regarding future entitlements. Should the proposed change be implemented then the current deficit of the scheme - £27.1m as of September 30th - would be reduced, resulting in a one-off credit to its income statement for the current year. The company is currently re-positioning itself towards a greater focus on its higher growth and margin areas, such as facilities and property management, as well its healthcare arm. Activity in the latter is concentrated on the homecare market. AB