28th Mar 2019 08:59
LONDON (Alliance News) - Mitie Group PLC on Thursday said it expects annual revenue and operating profit to increase, after a year of "steady progress".
Mities shares were trading 6.1% lower at 140.80 pence each.
For the year ending March 31, the facilities management business expects revenue to rise by between 7% and 8% from the prior year's GBP2.0 billion.
Operating profit before other items is guided in the range between GBP84 million and GBP87 million, higher than last year's GBP83.2 million, due to "continued profit growth" in the majority of its businesses.
Furthermore, Mitie expects net debt to reduce to between GBP160 and GBP180 million, compared to GBP186.7 million a year ago.
"The second year of our transformation has seen steady progress in Mitie," Chief Executive Officer Phil Bentley said.
"This is against a backdrop of undoubted challenges for the outsourcing sector, and some short-term economic uncertainty impacting clients' capital programmes and willingness to enter into longer term integrated contract commitments. Although our order book has softened, we have focussed on adding more value and services to our top clients and, as a result, we have seen continued growth in these accounts throughout financial 2019."
Mitie's order book held broadly flat in the second half of the financial year, the company said, but is expected 10% lower in the full year.
"Mitie is well-positioned for future growth despite a challenging backdrop in the industry and political uncertainty. We remain confident that we will emerge as an industry leader in our chosen service lines," the company added.
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