MITIE Group PLC - Glasgow-based facilities management - Third-quarter organic revenue, covering three months to December 31, is GBP573.9 million, 6.7% ahead of the same period last year. Notes year-to-date new contract wins and renewals are in excess of GBP770 million. Nine-month organic revenue of GBP1.55 billion is 4.3% lower than the same period in the prior year. Average daily net debt for the three months ended December 31 was much improved to an average net cash position of GBP31.4 million versus GBP313.6 million for the same period a year before.
"Although the performance in the third quarter of the year was encouraging, the new national lockdown measures currently in place are likely to result in flat growth in the fourth quarter. Overall, second half performance will be stronger than the first half," company says.
"The underlying acquired Interserve business is holding up well and synergy benefits are starting to be realised. Therefore Mitie Group's financial 2021 revenue and operating profit before other items, including share of JVs and associates, will be higher than previously thought with revenue - including Interserve for December 2020 to March 2021 - in the region of GBP2.4 billion GBP2.5 billion and operating profit before other items in the region of GBP57 million to GBP61 million. Full year margin will be ahead of the 2.2% we reported for the first half of the year, but significantly lower when compared to pre-Covid-19 levels."
Current stock price: 44.20 pence; up 3.6% Thursday
Year-to-date change: up 7.8%
By Paul McGowan; paulmcgowan@alliancenews.com
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Mitie (MTO)