MITIE Group PLC Trading update (4397U)
January 18 2017 - 1:00AM
UK Regulatory
TIDMMTO
RNS Number : 4397U
MITIE Group PLC
18 January 2017
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 GBP14m 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 GBP60m to GBP70m (including ongoing healthcare losses, but
before the previously disclosed GBP10m 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: 02031394830
UK Toll-Free Number: 08082370030
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URL for international dial in numbers http://events.arkadin.com/ev/docs/NE_FEL_Events_International_Access_List.pd
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Participant PIN code 47816713#
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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
This information is provided by RNS
The company news service from the London Stock Exchange
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