Last checked at 18 Jan 2017 07:00
18 January 2017
Mitie Group plc
Trading update
Mitie Group plc ("Mitie"), the facilities management and consultancy business, today issues the following trading update.
The Board has met for the past two days to review strategy and to consider the Group's trading outlook for the year as a whole. Property Management and Technical FM divisions have been impacted by client deferrals and investment plan delays, respectively, which are now expected to be fulfilled in 2Q 2017. Separately, it is clear that our Cleaning division is underperforming; management changes are being implemented.
In addition, the Board is undertaking a balance sheet review, and has taken a more conservative judgement on contractual positions, identifying an additional £14m of one-off charges in the year.
As a consequence of the above, we now expect underlying operating profit for the full year to 31 March 2017 to be in the range of £60m to £70m (including ongoing healthcare losses, but before the previously disclosed £10m one-off costs of change).
Despite these lower forecast earnings, we expect to continue operating within our contractual banking covenants.
The balance sheet review will also consider the potential impact of IFRS 15. Full year results for the twelve months ending 31 March 2017 and an update on our strategy will be announced on 24 May 2017.
-Ends-
This announcement includes inside information.
Call with management:
Mitie will be hosting a conference call at 0800 on Wednesday 18 January for analysts and investors. Dial-in details are as follows:
Dial in number(s) | UK Toll Number: 02031394830UK Toll-Free Number: 08082370030 |
URL for international dial in numbers | http://events.arkadin.com/ev/docs/NE_FEL_Events_International_Access_List.pdf |
Participant PIN code | 47816713# |
For further information, contact:
John Telling
Group Corporate Affairs Director, Mitie Group plc
T: +44 (0) 203 123 8673 M: +44 (0) 7979 701 006 E: john.telling@mitie.com
Lauren Hepburn
IR & PR manager, Mitie Group plc
T: +44 (0) 203 123 8720 M: +44 (0) 7469 405 E: lauren.hepburn@mitie.com
Notes for editors
What is Mitie?
Mitie is a FTSE 250 business providing facilities management, consultancy, project management and a range of specialist services that connect people with innovation and technology; helping our clients create better places to live and work.
We work in partnership with organisations to deliver long-term value, offering a wide range of services - from real estate and energy consultancy, compliance, risk assessment and security systems to cleaning, catering and environmental services. We manage and maintain some of the nation's most recognised landmarks for a range of blue-chip public and private sector customers.
We're all about developing our people to excel every day, challenge the status quo, and inspire change.
Find out more at www.mitie.com