Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Mitie Group To Produce A Mighty Set Of FY Results?

By Spreadex (Connor Campbell)Stock MarketsJun 01, 2018 12:12
uk.investing.com/analysis/mitie-group-plc-200201764
Mitie Group To Produce A Mighty Set Of FY Results?
By Spreadex (Connor Campbell)   |  Jun 01, 2018 12:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

An almost uninterrupted decline in the second half of 2017 saw Mitie enter 2018 at £1.87, its worst price in around a year. Things only become worse as the first quarter progressed, the stock slumping to a 13 year low of £1.48 towards the end of March. Yet the outsourcing firm has perked up since then, briefly striking a 5 month peak of £1.98 in late May. Mitie Group PLC now sits at a current trading price of £1.78.

Mitie Group PLC
Mitie Group PLC

It’s not a fund time to be in the outsourcing industry, something Mitie CEO Phil Bentley admitted as much in the firm’s pre-close statement back in March, arguing that Carillion’s collapse raises ‘fundamental questions’ about the sector.

Mitie said it is expecting a 2% to 2.5% rise in annual revenue to £2.2 billion, with a solid order book boosted by the £525 million detention and escorting contract signed in the Care & Custody division.

However, investors were disappointed with the news that the cost of Project Helix, its transformation programme designed to deliver savings of around £50 million by 2020, would cost £35 million in 2017/18, up from the £24 billion previously forecast. Net debt levels are also estimated to have risen by £50 million to £70 million year-on-year.

The firm also said that operating profit would be ‘slightly down on the previous year’ due to ‘investment in customers, IT and capability’. Given that FY 16/17 saw a 13.9% decline in operating profit to £82 million, investors will be hoping that the drop is only marginal.

Mitie Group (LON:MTO) has a consensus rating of ‘Buy’ alongside an average target price of £2.20.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.

Original post

Mitie Group To Produce A Mighty Set Of FY Results?
 

Related Articles

Mitie Group To Produce A Mighty Set Of FY Results?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email