27th Nov 2006 07:01
MITIE Group PLC27 November 2006 27 November 2006 MITIE Group PLC INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006 "MITIE has made a very good start to the year and enjoyed an encouraging levelof organic growth. We are benefiting from favourable market conditionsthroughout the sectors in which we operate". Ian Stewart, Chief Executive OPERATIONAL HIGHLIGHTS •Strong revenue growth of 30.2% to £585.0m •Integration of Security and Landscape acquisitions on target •Profit before interest, tax and amortisation up 28.3% to £28.1m •Operating profit margin of 5.0% achieved, before integration costs * •Earnings per share before amortisation up 32.6% to 5.7p •Dividend up 26.3% to 2.4p * See note 2 to the Interim Consolidated Financial Statements FINANCIAL HIGHLIGHTS 2006 2005 Growth £m £m £m %Revenue 585.0 449.2 135.8 30.2Profit before interest, tax and amortisation 28.1 21.9 6.2 28.3Profit before tax and amortisation 27.1 23.4 3.7 15.8Profit before tax 26.3 23.4 2.9 12.4 2006 2005 Growth p p p %Basic earnings per share 5.5 4.3 1.2 27.9Dividend per share 2.4 1.9 0.5 26.3Basic earnings per share before amortisation 5.7 4.3 1.4 32.6 Notes to editors For further information, please contact: Emma Woollaston, Investor Relations ManagerT: 020 7022 8476 M: 07920 765125 An audio webcast of MITIE's results presentation will be available online atwww.mitie.co.uk at 0930hrs on Monday 27 November 2006. A copy of the slides willalso be made available online later that morning. Both can be found in the'Investors' section of the website. High resolution images are available for media to download free of charge fromwww.vismedia.co.uk MITIE is one of the UK's leading support services companies and deliversfacilities, engineering and property services to a wide cross section ofclients. Our extensive range of activities includes building refurbishment andmaintenance, catering, cleaning, landscaping and grounds maintenance, mechanicaland electrical engineering, engineering maintenance, pest control, documentmanagement and distribution, security, and facilities management and services. MITIE aspires to be the first choice provider. We offer professional, flexibleand cost effective services by establishing close relationships with ourclients. From national to local, public to private, our services meet theeveryday demands of the markets in which we operate. By motivating our people todeliver services successfully and with passion, MITIE can offer single services,bundled services or a complete facilities management package, each individuallytailored to the requirements of the client. MITIE, which is an acronym for Management Incentive Through Investment Equity,employs a unique equity model that delivers services with the personalcommitment of a small business and the professionalism and quality expected froma large national organisation. For further information, please visit our website www.mitie.co.uk CHIEF EXECUTIVE'S STATEMENTMITIE has made a very good start to the year and enjoyed an encouraging level oforganic growth. The integration of our recent acquisitions, in Security andLandscape, are progressing well and we are benefiting from favourable marketconditions throughout the sectors in which we operate. OverviewRevenue for the period under review was up 30.2% to £585.0m (2005: £449.2m).Profit before tax for the period increased by 12.4% to £26.3m (2005: £23.4m),profit before amortisation increased by 15.8% to £27.1m (2005: £23.4m) and ourbasic earnings per share grew by 27.9% to 5.5p (2005: 4.3p). We are particularly pleased with the level of organic growth achieved across thebusinesses in the first half of the year and with our retention rate of existingcontracts. The operating and financial performance of our individual businesses is coveredin more detail in the Operating and Financial Reviews. AcquisitionsThe acquisitions made in Security and Landscape last year are integrating wellwith the rest of the Group and I am particularly encouraged by the progress thathas already been made with our largest acquisition, Initial Security Limited(ISL), now MITIE Security Limited. The MITIE model continues to play an important part in the overall strategy andculture of the Group, and on 24 August 2006 we announced the acquisition of theminority shareholdings of four MITIE start ups: MITIE Air Conditioning (London)Ltd; MITIE Engineering Maintenance (South West) Ltd; MITIE Engineering Services(Retail) Ltd; and MITIE Air Conditioning (Wales) Ltd. We will continue to provide the opportunity for people to run their ownbusiness, and we believe that there are a number of exciting opportunities forour smaller businesses to develop further using the MITIE model. An importantexample of this was the recent launch of a second generation equity scheme forMITIE Property Services, following shareholder approval in August 2006. Board changesOn 27 July 2006, Graeme Potts was appointed to the Board of MITIE as aNon-Executive Director. Graeme, 49, was previously Managing Director of Inchcape UK, Europe and SouthAmerica Retail, part of Inchcape plc, and before that Chief Executive of RegVardy plc and Group Managing Director of RAC Motoring Services. Graeme brings with him a considerable level of operational and commercialexperience of the corporate environment, and we are delighted to welcome him tothe Group. DividendI am pleased to report that the Board has declared an interim dividend of 2.4pper share (2005: 1.9p), which represents an increase of 26.3%. The dividendcover, based on Group profit for this period, is 2.5 times. The dividend will be paid on 30 March 2007 to shareholders on the register atthe close of business on 9 March 2007. OutlookGoing forward we will continue our strategy of targeting double digit growth bybuilding on our experience and ability to offer bundled services whilst furtherdeveloping the levels of expertise within our existing businesses. We are alsotaking a more integrated approach to major contract bid activity and continue toseek acquisition opportunities and start-ups that would fit within the MITIEmodel framework. In order to maintain the best possible level of service for our clients, we willcontinue investing in our people and we remain committed to our corporateresponsibility programmes throughout the Group. Part of this commitment involves ongoing support for our MITIE Skills Centres,which enable young people to develop their vocational skills in the constructionsector. In the first half of the year we opened two MITIE Skills Centres in Ipswich andBirmingham, and a third, in London, in October. This is in addition to theexisting centres in Portsmouth, Manchester, Sunderland and Bristol. Overall, the Group is set to perform in line with the Board's expectations andcontinue its track record of delivering profitable growth. Ian StewartChief Executive OPERATING REVIEWMITIE Support Services and MITIE Property Services have continued to producegood results, following their exceptional performances last year. SupportServices has seen a strong level of organic growth and has also been focused onthe integration of recent acquisitions. MITIE Engineering Services has seen apositive start to the year. The number of new and retained contracts MITIE has secured in the first half,across the full range of our services, is very positive for the Group andreflects our success in providing tailored services for our clients. We continue to offer our clients the flexibility of having one of threedifferent types of contract with MITIE: a single service contract; a bundledcontract; or a facilities management contract. Our single service contracts demonstrate our ability to operate seamlessly aspart of our customer's organisation, providing a focused, professional service. Bundled contracts occur when a customer wishes to employ more than one MITIEservice on the same site. The client will typically maintain an activeinvolvement in their facilities management, but will be looking to rationaliseits supply chain and engage a number of our services. The third type of contract we offer is a total facilities management service,which is where clients ask us to manage all aspects of their facilities and weoperate as an extension to their existing businesses. MITIE is extremely well positioned to manage all three types of serviceagreements, but we are seeing a trend for large blue chip companies to moveincreasingly towards bundled contracts. The bundling of contracts can develop from any of the MITIE businesses,especially where we already have excellent relationships with our customers onsite, and we believe it is this type of contract that will help drive furtherorganic growth within the Group. We will therefore continue to focus onimproving our customer knowledge, sharing that information across our individualbusinesses in order to meet our clients' needs more effectively. The increasing trend towards outsourcing continues to offer MITIE excellentopportunities and we remain focused on building national businesses, eachcapable of achieving a top five market share in their sector. MITIE Support ServicesWithin Support Services we offer a number of complementary services, includingCleaning, Security, Engineering Maintenance, Managed Services, BusinessServices, PFI, Catering, Landscape and Pest Control. Support Services won a number of important single and bundled service contractsin the first half, with significant growth coming from our Business Services,Catering and Managed Services businesses. Overall, Support Services hasincreased its revenue to £346.5m and grown its profit before interest, tax andamortisation by 29.1%, to £19.5m. 2006 2005 Growth £m £m £m % ------ ------ ------ ------Revenue 346.5 238.7 107.8 45.2Profit before interest, tax and amortisation 19.5 15.1 4.4 29.1Margin 5.6% 6.3%Profit before interest, tax, amortisation andintegration costs 20.6 15.1 5.5 36.4Margin 5.9% 6.3% MITIE CleaningCleaning provides services to offices, retail and transport premises, andcommercial buildings. Services include recycling, waste management andspecialist cleaning. Revenue: Up by 6.7% to £105.4m in 2006 (2005: £98.8m) Our Cleaning business has had a solid start to the year and has retained anumber of its key contracts, including those at Aberdeen College, andoutsourcing and technology company Xansa. We also retained the national contractwith Sun Microsystems through their managing agent partner. New work includes contracts with Walt Disney's UK head office and Camden BoroughCouncil, as well as a new three year contract with the new landmark parliamentin Wales, the Welsh Assembly Senedd. Securing this contract means that MITIE nowprovides cleaning services for all three parliament buildings in the UK. Our retail cleaning business is a good example of how the MITIE model drivesfurther organic growth by focusing on a niche area in the sector. In the firsthalf of the year this business secured work with Somerfield for over 500 of itsstores. Other new contracts include a brand new concept store for H&M and anumber of prominent shopping malls including Crystal Peaks in Sheffield. Our Health and Hygiene business has won a full domestic services contract withGreat Ormond Street Hospital, which has a term of five years. Cleaning's Waste and Environmental business is progressing well and during theperiod it was awarded several new contracts including work with Bank of America.This business has also just launched its revolutionary TREEHUGGER(R) Truck, abespoke vehicle which carries out recycling activities for clients along the M4corridor. We are seeing an increasing demand for innovative services such asthis, as our clients look to manage their environmental responsibilities moreeffectively within the workplace. Cleaning continues to be recognised externally for its environmentally friendlywork with clients and was recently awarded the 'Green Hero' environmentalaccolade for its contract with London based Foster and Partners. Together, theywere amongst the first in the country to be awarded a prize by the environmentalgroup, The Green Organisation. Our specialist transport cleaning business has secured further work withTransport for London after winning an additional contract to clean London'straffic light infrastructure, often a target for graffiti and other types ofcriminal damage. A 'hit squad' of three 'smart cars' was procured especially forthis contract to help tackle the problem in a timely and efficient manner. MITIE SecuritySecurity provides static guarding, mobile patrol, retail security, key holdingand alarm response, electronic security systems, aviation and transportsecurity. Revenue: Up by 233.0% to £121.2m in 2006 (2005: £36.5m) Security has experienced strong organic growth of 11.5% during the period andhas seen a significant increase in its revenue and profits due to theacquisition of ISL in March this year. Since the ISL acquisition the principal focus for Security has been to fullyintegrate our existing and acquired businesses, and to create a leading nationalsecurity business. The organisational integration activities are on track to becompleted by 31 March 2007, and are expected to deliver annualised synergybenefits of £3.0m in the year ended 31 March 2008. The industry as a whole continues to be impacted by the Security IndustryAuthority's new regulations. The latest requirement, introduced on 1 August2006, is for companies to have a minimum of 85.0% of their staff licensed inorder for them to qualify for Approved Contractor Status, which we haveachieved. We believe this legislation will continue to provide opportunities for the Groupas smaller businesses struggle to meet the additional costs and commitmentrequired to invest in new training for staff. New work during the period included contracts with Bath Museum and First Bus. The integrated Security business remains focused on service excellence for itsclients. As the second largest manned guarding business in the UK we believethat our training and people place us in an excellent position to continuewinning new and retaining existing business. MITIE Engineering MaintenanceEngineering Maintenance provides heating, ventilation and air conditioningmaintenance, mechanical and electrical systems maintenance, statutoryinspections and testing, estate maintenance and asset care for a variety ofclients in all major market sectors throughout the UK. Revenue: Up by 8.3% to £49.0m in 2006 (2005: £45.2m) Engineering Maintenance has seen good organic growth in this period andcontinues to build long-term relationships with its customers, havingsuccessfully re-negotiated a number of existing contracts. The BirminghamBullring Shopping Centre contract was secured for a further three years, and theMinistry of Defence contract in Corsham was retained and extended to includeadditional services throughout the portfolio of United States Air Force defenceestates in the UK. The business has grown a number of its regional contracts into nationalcontracts, and continues to introduce other MITIE companies in order to addfurther value for its customers and increase the number of bundled contracts forthe Group. A recent example of this is the contract with Computer 2000Distribution Ltd, which has been developed into a bundled services contract withCleaning and Security. Engineering Maintenance has also won an encouraging amount of new work withcontract wins in the private sector including Cardiff International BusinessPark, Walt Disney, and Fort Dunlop in Birmingham. In the education sector, workhas been secured with the University of London, the London MetropolitanUniversity and the University College of Creative Arts. Engineering Maintenance leads the MITIE bundled contract with Sellafield, whichwas recently re-tendered. The contract now includes Cleaning, Security andBusiness Services. This contract is typical of the trend we are seeing whereorganisations look to procure bundled services from fewer providers in an effortto control costs and improve the quality of services delivered. Engineering Maintenance has also secured a major new five year contract withBirmingham City Council for the maintenance and repair of many of the City'sschools, museums, libraries and art galleries. MITIE Managed ServicesManaged Services encompasses facilities management and consultancy, projectmanagement, integrated service delivery, energy and environmental management toa wide range of customers across a number of sectors. Revenue: Up by 16.4% to £39.7m in 2006 (2005: £34.0m) Managed Services has had a strong start to the year retaining all of thecontracts re-bid in the period, and has seen new contract wins across both itspublic and private sector client base. New contract wins in the public sector include the recently opened Grace Academyin the West Midlands, whilst new private sector work has commenced with homeshopping company, Littlewoods Shop Direct Home Shopping Ltd. The business alsosecured new contracts with RWE npower and healthcare product manufacturer anddistributor SSL International. Earlier this year Managed Services secured preferred supplier status with OGC(Office of Government Commerce) Buying Solutions, the Government's leadingprocurement services organisation for the UK. This has already led to four newcontracts across the UK, and we anticipate this will continue to be a majorsource of opportunities going forward. MITIE Business ServicesBusiness Services provides mailroom management, reception and switchboard,records management, print and reprographics, creative services and documentdistribution to its clients. Revenue: Up by 28.6% to £10.5m in 2006 (2005: £8.2m) Business Services achieved excellent first half organic growth, and has built onthe success it had last year with major contract awards in both single andbundled services. Business Services has successfully mobilised the PricewaterhouseCooperscontract, its largest win to date. This contract is for the provision ofdocument management and distribution services, including reprographics, mail,publications, and stationery for the entire PricewaterhouseCoopers networkthroughout the UK. Retained contracts include mailroom services for a major financial institutionand our Network Rail contract which has now been extended to include Cleaning,Security and Engineering Maintenance in addition to the reception, mail andreprographics services originally provided. Business Services is also involved with the bundled services contract atSellafield, and will be providing mail services to the site. MITIE PFIOur PFI business provides support to Private Finance Initiative (PFI) programmesin the education sector. It focuses on the provision of facilities andoperational support services, rather than participation in PFI equity schemes. Revenue: Up by 10.7% to £4.9m in 2006 (2005: £4.4m) Our PFI business has had a strong start to the year with the focus beingprimarily on the mobilisation of new contracts. Our earlier investment in thebusiness is now making a contribution and we are now delivering services at theschools which have completed their construction phase. An example of this was the Darlington Education Village which was opened in Julythis year by the Prime Minister. A further six new schools were also opened intime for the beginning of the Autumn 2006 term. In addition we have reached financial close on the East Ayrshire schoolsportfolio contract, although the contract is not scheduled to start for another18 months. MITIE now has a strong market share, which positions us firmly as one of themajor market leaders in this sector. The investment focus for this businessgoing forward will therefore be on the Government's new 'Building Schools forthe Future' initiative, which is scheduled for some £50bn of investment. MITIEremains very well placed to secure future work within this programme. MITIE CateringCatering provides hospitality and executive dining, vending and consultancyservices, events, and staff catering to a wide range of clients across the UK. Revenue: Up by 6.2% to £7.7m in 2006 (2005: £7.3m) Catering continues to make good progress with existing and new contracts, witheach of the regional start up companies performing well in the period. The contract with Bookham Technology has been enlarged as a bundle, which is ledby Catering, and includes Cleaning, Landscape, Security, Engineering Maintenanceand Pest Control. Strong levels of growth in the London business have also been achieved by aseries of new contract wins, which include The Brewery in Chiswell Street andcommercial law firm, Beachcroft LLP, at both their offices in London andBristol. In the North of England, Catering has secured new business with retailerMatalan, semi-conductor business Zetex, and car parts manufacturer Hashimoto. The business will continue to focus on niche catering and has recently launchedfair trade coffee for all its hospitality services. MITIE LandscapeLandscape provides a traditional range of services including grounds and estatemaintenance, landscape design and installation, gritting and winter maintenance,together with estate lighting and drainage. The business also providesarboricultural works and interior tropical plant services. Revenue: Up by 200.0% to £5.4m in 2006 (2005: £1.8m) The acquisition of grounds maintenance company Lyndhurst Services Ltd inFebruary this year increased our national coverage and we now have a significantpresence in the market. We have improved our garden design capability and wewere delighted when the MITIE sponsored garden, exhibited at the Chelsea FlowerShow in May this year, won a Silver Gilt Medal. Landscape has secured a number of contracts with housing associations includingthe Cosmopolitan Housing Association in Liverpool and the Charlton TriangleHousing Association in London. The business continues to target the education sector and has been awarded a newcontract with Thames Valley University. Elsewhere, Landscape has secured newwork with NCP Ltd. Retained work includes Cable & Wireless, and the recently expanded contract withcommercial property consultants King Sturge. MITIE Pest ControlPest Control offers its clients service contracts, reactive contracts, insectcontrol, bird control, wildlife management and hygiene services. Revenue: Up by 6.5% to £2.7m in 2006 (2005: £2.5m) Pest Control continues to operate in a very competitive market with challengingconditions. The business, however, has made good progress in the period. InOctober we acquired the contract base of Antipest in the East Midlands for atotal consideration of £0.35m and started MITIE Pest Control (London) Limitedunder the MITIE model. Pest Control has also enjoyed new contract wins and isfurther investing in its regional sales and management structure to betterposition itself for future growth. New work during the period includes contracts with Motorola, Lloyds TSB and theBank of England. Pest Control has also won a contract with Network Rail Framework to birdproof anumber of bridges. Retained work includes the BAA contract at Heathrow, Gatwick, Southampton andStansted airports. MITIE Property ServicesProperty Services provides refurbishment, interior fit out work, officefurniture supply, painting, repair and maintenance, roofing and fire protectionto clients across several market sectors. Our Social Housing offeringencompasses many of these activities. 2006 2005 Growth £m £m £m % ------ ------ ------ ------Revenue 102.1 78.2 23.9 30.6Profit before interest, tax and amortisation 4.8 4.2 0.6 14.3Margin 4.7% 5.4% During the period, Property Services has focused on the mobilisation andintegration of the Birmingham City Council and Milton Keynes social housingcontracts. Both contracts commenced on 1 April 2006. The business has continued to achieve good levels of organic growth. PropertyServices secured Decent Homes contracts with Magna Housing Association inBournemouth, the Procurement for All consortia in London, Preston and Leeds, Preston City Council and Partick Housing Association. The business also won long-term, response maintenance contracts with Fife Special Housing Association and Kingdom Housing Association. Within other areas of the business, painting has secured partnering contractswith Great Yarmouth Council and Dudley Metropolitan Borough Council, and a repair and maintenance contract with Birmingham City Council for a large proportion of the City's public building portfolio. Property Services' existing contract with private property company Bruntwood Ltdhas been expanded during the period, with the potential for more work in thesecond half. In addition, the business was awarded a refurbishment contract by Brunel Carefollowing the completion of another successful project earlier in the year. The interiors division, our specialist fit out business, is currently working oncontracts with property investment company D2 Private, Mercedes- Benz, LandSecurities Trillium and global law firm Milbank, Tweed, Hadley & McCloy LLP. MITIE Engineering ServicesEngineering Services covers mechanical and electrical design and installation,air conditioning design and installation, retail engineering, life cyclesolutions, utilities, and business critical technology. 2006 2005 Growth £m £m £m % ------ ------ ------ ------Revenue 136.4 132.3 4.1 3.1Profit before interest, tax and amortisation 3.8 2.6 1.2 46.2Margin 2.8% 2.0% Engineering Services has had a positive start to the year and remains focused onmargin improvement. Engineering Services' activities in Technology have been awarded new datacentres and business critical contracts with blue chip clients such as IBM andCentrica. Their services in the retail sector continue to win work with Primark,Marks & Spencer and Bhs. The regional contracting businesses are all performing well and are currentlybuilding a good forward workload for the next 12 months. In Wales, the businesshas been appointed preferred contractor with Laing O'Rourke for the 'Designedfor Life' partnering programme with the NHS of Wales. The first project, withAberystwyth Hospital, will commence later this year. New work secured last yearwith Rhondda Hospital and the University of Manchester has started and thebusiness has grown its existing long term contracts with Plymouth University andLand Securities Trillium. Other new contracts include the installation of two combined heating and powerunits at Bristol University, which have been designed to reduce CO2 emissions by30.0%. A similar system is being installed at the University of Sussex, which will generate 20.0% of the University's electricity. Engineering Services also won a multi-million pound refurbishment contract withKestrel Property Developers in the centre of Birmingham, a contract withSheffield Retirement Village, and work with regenerator Urban Splash at FortDunlop. FINANCIAL REVIEWOur Interim results continue the trend of good profitable growth from MITIE,driven both organically and from our recent acquisitions. Margins for the Groupbefore integration costs associated with acquisitions are being maintained. Weare starting to see the benefits of post acquisition synergy savings from ourenlarged MITIE Security business. Cash management remains a focus, and underpinsthe Group's result for the period through the efficient conversion of operatingprofit to cash. RevenueRevenue from continuing operations for the Group increased by 30.2% to £585.0m(2005: £449.2m) in the six months to 30 September 2006. This result has been driven by organic revenue growth for the Group as a wholeof 11.6% and from the impact of acquisitions made in the previous year. Thoseacquisitions generated revenue of £90.7m (2005: £6.3m) in the period in ourSupport Services business sector, the majority of which was attributable to theISL acquisition made in March 2006. Our Support Services business achieved an overall growth rate of 45.2% in theperiod, and underlying organic growth of 10.1%. The acquisitions, in Securityand Landscape, have supported the substantial growth in revenue in thosebusinesses. Further strong growth has also been achieved in Managed Services,PFI and Business Services. Revenues in Property Services have increased organically by 30.6% in the period,largely reflecting the impact of new social housing contracts that commenced inApril 2006. Engineering Services revenues have increased by 3.1% compared to theprevious period as the business continues its focus on selective bidding andprofit improvement. We have secured 94.0% (2005: 92.0%) of our budgeted revenue for 2006/07. Profit before interest, tax and amortisationProfit before interest, tax and amortisation for the period of £28.1m (2005:£21.9m) is stated after the impact of integration costs of £1.1m in respect ofthe consolidation of our enlarged Security business. Group profit before interest, tax, amortisation and integration costs was £29.2m(2005: £21.9m) reflecting a margin on revenue of 5.0% (2005: 4.9%) - see note 2to the Interim Consolidated Financial Statements. The maintenance of margins ata Group level has been achieved through the improvement in profit margins beforeinterest, tax and amortisation in our traditional Support Services business(before acquisitions) and through the improvement in results from EngineeringServices. The Group's profit margin improvements have been partly offset by lower marginsin Property Services as expected, following the impact of longer term, but lowermargin, social housing contracts, and by the effect of the acquisitions inSupport Services which are currently in an integration phase. Intangible amortisationThe charge in respect of intangible asset amortisation has increased to £0.8m(2005: £nil). Intangible assets in respect of the value attributable to customerlists were recognised in the prior year on businesses acquired from thirdparties. The intangible asset attributable to each acquisition is amortised on astraight line basis over its expected useful life and is reviewed annually forimpairment. Investment and finance costsInvestment and finance costs for the period were £1.0m (2005: income £1.5m) andreflect the funding costs on the servicing of the Group's net debt position(2005: net cash). The Group moved from a net cash to a net debt position inMarch 2006 following the acquisition of ISL. Profit before taxProfit before tax from continuing operations grew by 12.4% to £26.3m (2005:£23.4m). Profit before tax and amortisation from continuing operations for theperiod increased by 15.8% to £27.1m (2005: £23.4m). TaxThe tax charge for the period was £8.1m (2005: £6.9m).The effective rate of taxfor the period was 30.9% (2005: 29.7%).The effective rate of tax on profitsbefore amortisation was 30.9% (2005: 29.7%). Profit for the periodThe profit for the period was £18.2m (2005: £14.1m) an increase of 29.1%. Allprofit for the period has been generated from continuing operations (2005:£16.5m). In 2005, losses from discontinued operations were £2.4m. Minority interestsThe minority interest in profit for the period was £1.2m (2005: £1.1m). Thisreflects the interest in the profitability of certain subsidiary undertakingswhich have arisen from the investment in those companies under the MITIE model. Earnings per share (EPS)Basic EPS before intangible amortisation increased by 32.6% to 5.7p per share(2005: 4.3p per share).The increase in basic EPS is attributable to the growthin underlying profits from continuing operations and to the impact of losses of£2.4m from discontinued operations in 2005. After intangible amortisation, basic EPS was 5.5p per share (2005: 4.3p). On thesame basis, diluted EPS was 5.4p (2005: 4.2p). The weighted average numbers of shares in issue on which basic EPS and dilutedEPS have been calculated are 309.2m (2005: 303.7m) and 312.8m (2005: 306.5m)respectively. DividendsIn 2004, we set a dividend policy to achieve an annual dividend cover of no morethan three times. We review this policy on a regular basis. The interim dividendof 2.4p per share (2005: 1.9p) represents an increase of 26.3% and dividendcover of 2.5 times (2005: 2.4 times). PensionsAt 30 September 2006, the net amount included in the balance sheet arising fromour defined benefit pension scheme obligations before tax was a deficit of £0.5m(2005: deficit - £11.4m). At 31 March 2006, the net amount included in ourbalance sheet in respect of those obligations was a net surplus of £1.8m.Themovement in the net position of the fund in the six months to 30 September 2006is largely attributable to the movement in equity prices in that period. Acquisition of minority interestsOn 24 August 2006, the Group acquired some or all of the minority interests inthe shares of four subsidiaries. The total maximum consideration payable in respect of these acquisitions ofshares is £2.9m.The consideration will be largely settled in the shares of MITIEGroup PLC. Further details are shown in note 7 to the interim consolidatedfinancial statements. Also on 24 August 2006, the Group settled deferred consideration of £0.8m inrespect of the acquisition of shares in MITIE Business Services Ltd, MITIEEngineering Services (Swansea) Ltd and MITIE Security (North) Ltd on 24 August 2005. The total number of MITIE Group PLC shares issued in respect of thesetransactions was 1,727,180. In addition, £1.9m of deferred consideration was paid in the period in respectof MITIE Security (London) Limited (formerly MITIE Trident Security Limited). A further £8.9m of loan notes were issued to the original shareholders of MITIE Security (London) Limited in respect of the settlement of deferred consideration. Cash flowThe net debt position of the Group at 30 September 2006 was £20.8m (2005: netcash £62.6m). As noted above, the Group moved to a net debt position in March2006 following the acquisition of ISL. Loans of £30.0m were drawn at 30September 2006 (2005: nil), whilst cash held by the Group's insurancesubsidiary, which is not readily available to the Group, totalled £9.2m at theperiod end (2005: £9.6m). The underlying cash flow performance of the Group remains strong with £28.7m(2005: £29.4m) of cash generated from operations. Interim Consolidated Income Statement For the six months to 30 September 2006 30 September 30 September 2006 2005 (unaudited) (unaudited)----------- ----- -------- -------- -------- -------- -------- -------- Notes Before Amortisation Total Before Amortisation Total amortisation and amortisation and and discontinued and discontinued discontinued operations discontinued operations operations operations £m £m £m £m £m £m----------- ----- -------- -------- -------- -------- -------- --------ContinuingoperationsRevenue 2 585.0 - 585.0 449.2 - 449.2Cost of sales (476.6) - (476.6) (362.8) - (362.8)----------- ----- -------- -------- -------- -------- -------- --------Gross profit 108.4 - 108.4 86.4 - 86.4----------- ----- -------- -------- -------- -------- -------- -------- Otheradministrativeexpenses (80.3) - (80.3) (64.5) - (64.5)Amortisationof intangibleassets - (0.8) (0.8) - - ------------ ----- -------- -------- -------- -------- -------- --------Totaladministrativeexpenses (80.3) (0.8) (81.1) (64.5) - (64.5)----------- ----- -------- -------- -------- -------- -------- --------Operatingprofit 2 28.1 (0.8) 27.3 21.9 - 21.9 Investmentrevenue 0.2 - 0.2 1.2 - 1.2Finance costs (1.2) - (1.2) 0.3 - 0.3----------- ----- -------- -------- -------- -------- -------- --------Profit beforetax 27.1 (0.8) 26.3 23.4 - 23.4----------- ----- -------- -------- -------- -------- -------- --------Tax (8.3) 0.2 (8.1) (6.9) - (6.9)----------- ----- -------- -------- -------- -------- -------- --------Profit for theperiod fromcontinuingoperations 18.8 (0.6) 18.2 16.5 - 16.5----------- ----- -------- -------- -------- -------- -------- -------- DiscontinuedoperationsLoss for theperiod fromdiscontinuedoperations - - - - (2.4) (2.4)----------- ----- -------- -------- -------- -------- -------- --------Profit for theperiod 18.8 (0.6) 18.2 16.5 (2.4) 14.1----------- ----- -------- -------- -------- -------- -------- -------- Attributableto:Equity holdersof the parent 17.6 (0.6) 17.0 15.4 (2.4) 13.0Minorityinterests 1.2 - 1.2 1.1 - 1.1----------- ----- -------- -------- -------- -------- -------- -------- 18.8 (0.6) 18.2 16.5 (2.4) 14.1 ----------- ----- -------- -------- -------- -------- -------- --------Earnings pershare (EPS)- basic 5 5.7 p (0.2) p 5.5 p 5.1 p (0.8) p 4.3 p- diluted 5 5.6 p (0.2) p 5.4 p 5.0 p (0.8) p 4.2 p----------- ----- -------- -------- -------- -------- -------- -------- Interim Consolidated Income Statement continued 31 March 2006 (audited)---------------------- ----- ---------- ---------- ---------- Notes Before Amortisation Total amortisation and and discontinued discontinued operations operations £m £m £m---------------------- ----- ---------- ---------- ----------Continuing operationsRevenue 2 935.6 - 935.6Cost of sales (757.0) - (757.0)---------------------- ----- ---------- ---------- ----------Gross profit 178.6 - 178.6---------------------- ----- ---------- ---------- ---------- Otheradministrativeexpenses (130.3) - (130.3)Amortisationof intangibleassets - (0.2) (0.2)---------------------- ----- ---------- ---------- ----------Totaladministrativeexpenses (130.3) (0.2) (130.5)---------------------- ----- ---------- ---------- ----------Operatingprofit 2 48.3 (0.2) 48.1 Investmentrevenue 2.6 - 2.6Finance costs (0.2) - (0.2)---------------------- ----- ---------- ---------- ----------Profit beforetax 50.7 (0.2) 50.5---------------------- ----- ---------- ---------- ----------Tax (15.5) - (15.5)---------------------- ----- ---------- ---------- ----------Profit for theperiod fromcontinuingoperations 35.2 (0.2) 35.0---------------------- ----- ---------- ---------- ---------- Discontinued operationsLoss for theperiod fromdiscontinuedoperations - (2.4) (2.4)---------------------- ----- ---------- ---------- ----------Profit for theperiod 35.2 (2.6) 32.6---------------------- ----- ---------- ---------- ---------- Attributable to:Equity holdersof the parent 32.8 (2.6) 30.2Minorityinterests 2.4 - 2.4---------------------- ----- ---------- ---------- ---------- 35.2 (2.6) 32.6---------------------- ----- ---------- ---------- ----------Earnings per share (EPS)- basic 5 10.6 p (0.8) p 9.8 p- diluted 5 10.5 p (0.8) p 9.7 p---------------------- ----- ---------- ---------- ---------- Interim Consolidated Statement of Recognised Income and Expense For the six months to 30 September 2006 30 September Year to 31 -------------- March 2006 2005 2006 (unaudited) (unaudited) (audited) £m £m £m---------------------------- ---------- ---------- --------Actuarial (losses)/gains on definedbenefit pension schemes (3.2) (4.3) 1.1Tax credit/(charge) on items takendirectly to equity 1.0 1.1 (2.6)---------------------------- ---------- ---------- --------Net expense recognised directly inequity (2.2) (3.2) (1.5) Profit for the period 18.2 14.1 32.6---------------------------- ---------- ---------- --------Total recognised income and expensefor the financial period 16.0 10.9 31.1 Attributable to:Equity holders of the parent 14.8 9.8 28.7Minority interests 1.2 1.1 2.4---------------------------- ---------- ---------- -------- Interim Consolidated Balance Sheet At 30 September 2006 30 September 31 March -------------- 2006 2005 2006--------------------- -------- --------- --------- --------- Notes (unaudited) (unaudited) (audited) £m £m £m--------------------- -------- --------- --------- ---------Non-current assetsGoodwill 146.6 70.3 143.8Other intangible assets 10.7 - 11.5Property, plant and equipment 36.4 31.2 34.5Deferred tax assets 5.1 4.4 4.9Retirement benefit surplus - - 1.8--------------------- -------- --------- --------- ---------Total non-current assets 198.8 105.9 196.5--------------------- -------- --------- --------- --------- Current assetsInventories 10.1 6.1 8.8Trade and other receivables 256.4 212.7 244.3Cash and cash equivalents 9.2 62.6 9.6--------------------- -------- --------- --------- ---------Total current assets 275.7 281.4 262.7--------------------- -------- --------- --------- ------------------------------ -------- --------- --------- ---------Total assets 474.5 387.3 459.2--------------------- -------- --------- --------- --------- Current liabilitiesTrade and other payables (220.4) (196.1) (214.5)Current tax liabilities (7.0) (8.0) (7.6)Provisions (2.9) - (11.7)Obligations under financeleases (0.5) (0.3) (0.8)Bank overdrafts and loans (30.0) - (33.0)--------------------- -------- --------- --------- ---------Total current liabilities (260.8) (204.4) (267.6)--------------------- -------- --------- --------- ------------------------------ -------- --------- --------- ---------Net current assets 14.9 77.0 (4.9)--------------------- -------- --------- --------- --------- Non-current liabilitiesObligations under financeleases (1.2) (0.8) (1.0)Retirement benefit obligation (0.5) (11.4) -Provisions (10.3) (13.7) (10.2)Deferred tax liabilities (3.7) (0.2) (4.7)Other non-current liabilities (8.9) - ---------------------- -------- --------- --------- ---------Total non-current liabilities (24.6) (26.1) (15.9)--------------------- -------- --------- --------- ------------------------------ -------- --------- --------- ---------Total liabilities (285.4) (230.5) (283.5)--------------------- -------- --------- --------- ------------------------------ -------- --------- --------- ---------Net assets 2 189.1 156.8 175.7--------------------- -------- --------- --------- --------- Equity 8Share capital 7.8 7.7 7.7Share premium account 15.0 12.4 13.7Merger reserve 54.9 52.0 52.0Revaluation reserve (0.2) (0.2) (0.2)Capital redemption reserve 0.3 0.3 0.3Other reserve 0.3 0.4 0.3Share-based payments reserve 1.5 1.0 1.4Retained earnings 97.8 74.0 90.1--------------------- -------- --------- --------- ---------Equity attributable to equityholders of the parent 177.4 147.6 165.3--------------------- -------- --------- --------- --------- Minority interests 11.7 9.2 10.4--------------------- -------- --------- --------- ---------Total equity 189.1 156.8 175.7--------------------- -------- --------- --------- --------- Interim Consolidated Cash Flow Statement For the six months to 30 September 2006 30 September 31 March -------------- 2006 2005 2006--------------------- -------- --------- --------- --------- Notes (unaudited) (unaudited) (audited) £m £m £m--------------------- -------- --------- --------- ---------Net cash from operatingactivities 6 19.0 21.9 32.1 Investing activitiesInterest received 0.2 1.3 2.5Purchase of property, plantand equipment (9.6) (7.4) (13.8)Purchase of subsidiaryundertakings (2.3) (9.4) (85.5)Disposals of property, plantand equipment 2.1 0.9 2.6--------------------- -------- --------- --------- ---------Net cash outflow frominvesting activities (9.6) (14.6) (94.2)--------------------- -------- --------- --------- --------- Financing activitiesRepayments of obligationsunder finance leases (0.1) (0.1) (0.2)Proceeds on issue of sharecapital 0.9 1.0 2.1Repayments of loans onpurchase of subsidiaryundertakings - - (11.6)Bank loans (repaid)/raised (1.0) - 31.0Share buybacks - (1.6) (1.6)Equity dividends paid (7.4) (5.4) (11.3)Minority dividends paid (0.2) (0.1) (0.2)--------------------- -------- --------- --------- ---------Net cash (outflow)/inflow fromfinancing (7.8) (6.2) 8.2--------------------- -------- --------- --------- ------------------------------ -------- --------- --------- ---------Net increase/(decrease) incash and cash equivalents 1.6 1.1 (53.9)--------------------- -------- --------- --------- --------- Net cash and cash equivalentsat beginning of year 7.6 61.5 61.5--------------------- -------- --------- --------- ---------Net cash and cash equivalentsat end of year 9.2 62.6 7.6--------------------- -------- --------- --------- --------- Net cash and cash equivalentscomprises:Cash at bank 9.2 62.6 9.6Overdraft - - (2.0)--------------------- -------- --------- --------- --------- 9.2 62.6 7.6--------------------- -------- --------- --------- --------- Notes to the Interim Consolidated Financial StatementsAt 30 September 2006 1 Basis of preparation The interim financial statements for the six months to 30 September 2006 havebeen prepared on the basis of the accounting policies set out in the Group'slatest annual financial statements for the year ended 31 March 2006. Theseaccounting policies are drawn up in accordance with International AccountingStandards (IAS) and International Financial Reporting Standards (IFRS) as issuedby the International Accounting Standards Board. The interim consolidated financial statements are unaudited, have not beensubject to audit review and do not include all the information and disclosuresrequired in the annual financial statements, and therefore should be read inconjunction with the Group's annual financial statements as at 31 March 2006. The financial information presented for the year ended 31 March 2006 does notrepresent full statutory accounts within the meaning of Section 240 of theCompanies Act 1985. A copy of the statutory accounts for that year has beendelivered to the Registrar of Companies. The auditor's report on those accountswas not qualified and did not contain statements under section 237(2) or (3) ofthe Companies Act 1985. Significant accounting policies The accounting policies adopted in the preparation of the interim financialstatements are consistent with those followed in the preparation of the Group'sannual financial statements for the year ended 31 March 2006. 2 Segmental analysis Six months to Six months to 30 September 30 September 2006 2005 ----------------- ----------------- Revenue Profit before Margin Profit before Revenue Profit before Margin Profit before interest tax tax interest tax tax and and amortisation amortisation £m £m % £m £m £m % £m----------- ------- ------- ------- ------- ------- ------- ------- -------SupportServices 346.5 19.5 5.6 17.5 238.7 15.1 6.3 16.0PropertyServices 102.1 4.8 4.7 4.8 78.2 4.2 5.4 4.4EngineeringServices 136.4 3.8 2.8 4.0 132.3 2.6 2.0 3.0----------- ------- ------- ------- ------- ------- ------- ------- -------Continuingoperations 585.0 28.1 4.8 26.3 449.2 21.9 4.9 23.4----------- ------- ------- ------- ------- ------- ------- ------- ------- Discontinuedoperations - - - - - (2.4) - (2.4)----------- ------- ------- ------- ------- ------- ------- ------- ------- Total 585.0 28.1 4.8 26.3 449.2 19.5 4.3 21.0 ----------- ------- ------- ------- ------- ------- ------- ------- ------- The results set out above are stated after integration costs of £1.1m relatingto acquisitions made in the prior year. The results of the Group before theeffect of integration costs are as follows: Six months to 30 September 2006 Revenue Profit before Margin Profit interest tax before and tax amortisation £m £m % £m ------------------------------- ------- ------- ------ -------SupportServices 346.5 19.5 5.6 17.5Add:Integrationcosts - 1.1 - 1.1------------------------------- ------- ------- ------ ------- Total 346.5 20.6 5.9 18.6 ------------------------------- ------- ------- ------ -------PropertyServices 102.1 4.8 4.7 4.8EngineeringServices 136.4 3.8 2.8 4.0------------------------------- ------- ------- ------ -------Totalcontinuingoperations 585.0 29.2 5.0 27.4------------------------------- ------- ------- ------ ------- 2 Segmental analysis continued Year to 31 March 2006 Revenue Profit before Margin Profit before interest tax tax and amortisation £m £m % £m------------------------------- ------- ------- ------ -------SupportServices 516.0 33.0 6.4 34.3PropertyServices 163.5 8.9 5.4 9.0EngineeringServices 256.1 6.4 2.5 7.2------------------------------- ------- ------- ------ -------Continuingoperations 935.6 48.3 5.1 50.5------------------------------- ------- ------- ------ ------- Discontinuedoperations - (2.4) - (2.4)------------------------------- ------- ------- ------ ------- Total 935.6 45.9 4.9 48.1------------------------------- ------- ------- ------ ------- Other segmental analysis: Six months to Six months to 30 September 30 September 2006 2005 Support Property Engineering Total upport Property Engineering Total Services Services Services Services Services Services £m £m £m £m £m £m £m £m ----------- ------- ------- ------- ------- ------- ------- ------- -------Assets bysegmentIntangibleassets 139.7 5.5 12.1 157.3 53.2 5.5 11.6 70.3Assets 141.3 78.7 97.2 317.2 159.6 60.7 96.7 317.0----------- ------- ------- ------- ------- ------- ------- ------- -------Total assets 281.0 84.2 109.3 474.5 212.8 66.2 108.3 387.3----------- ------- ------- ------- ------- ------- ------- ------- ------- Liabilitiesby segmentLiabilities (159.4) (53.0) (73.0) (285.4) (117.6) (40.2) (72.7) (230.5)----------- ------- ------- ------- ------- ------- ------- ------- -------Totalliabilities (159.4) (53.0) (73.0) (285.4) (117.6) (40.2) (72.7) (230.5)----------- ------- ------- ------- ------- ------- ------- ------- ------------------ ------- ------- ------- ------- ------- ------- ------- -------Total netassets 121.6 31.2 36.3 189.1 95.2 26.0 35.6 156.8----------- ------- ------- ------- ------- ------- ------- ------- ------- CapitalexpenditureTangible 4.7 3.8 1.1 9.6 4.3 1.5 1.6 7.4assetsDepreciationcharge 4.1 1.0 0.8 5.9 3.0 0.8 0.8 4.6Intangibleassets 2.3 - 0.5 2.8 16.3 - 1.3 17.6Intangibleamortisation 0.8 - - 0.8 - - - ------------ ------- ------- ------- ------- ------- ------- ------- ------- Year to 31 March 2006 Support Property Engineering Total Services Services Services £m £m £m £m------------------------------- ------- ------- ------- -------Assets by segmentIntangibleassets 138.3 5.4 11.6 155.3Assets 140.2 65.8 97.9 303.9------------------------------- ------- ------- ------- -------Total assets 278.5 71.2 109.5 459.2------------------------------- ------- ------- ------- -------Liabilities by segmentLiabilities (167.3) (42.8) (73.4) (283.5)------------------------------- ------- ------- ------- -------Totalliabilities (167.3) (42.8) (73.4) (283.5)------------------------------- ------- ------- ------- -------------------------------------- ------- ------- ------- -------Total netassets 111.2 28.4 36.1 175.7------------------------------- ------- ------- ------- ------- Capital expenditureTangible assets 10.0 2.1 1.7 13.8Depreciationcharge 6.8 1.5 1.5 9.8Intangibleassets 101.5 - 1.3 102.8Intangibleamortisation 0.2 - - 0.2------------------------------- ------- ------- ------- ------- Segmental analysis continued Revenue analysis: Revenue Six months to Year to 31 30 September March ----------------------------- 2006 2005 2006 £m £m £m----------------------------- ---------- ---------- ----------Support ServicesCleaning 105.4 98.8 204.7Security 121.2 36.5 87.2Engineering Maintenance 49.0 45.2 102.3Managed Services 39.7 34.0 71.6Business Services 10.5 8.2 16.8PFI 4.9 4.4 10.7Catering 7.7 7.3 13.6Landscape 5.4 1.8 4.4Pest Control 2.7 2.5 4.7----------------------------- ---------- ---------- ----------Total Support Services 346.5 238.7 516.0----------------------------- ---------- ---------- ---------- Property Services 102.1 78.2 163.5Engineering Services 136.4 132.3 256.1----------------------------- ---------- ---------- ---------- Total 585.0 449.2 935.6----------------------------- ---------- ---------- ---------- 3 Dividends The proposed interim dividend of 2.4p (2005: 1.9p) per share (not recognised asa liability at 30 September 2006) will be paid on 30 March 2007 to shareholderson the Register on 9 March 2007. The dividend disclosed in the cash flow represents the final ordinary dividendof 2.4p (2005: 1.8p) per share as proposed in the 31 March 2006 financialstatements and approved at the Group's AGM (not recognised as a liability at 31March 2006). 4 Taxation Income tax on the profit before intangible amortisation for the six months ended30 September 2006 is based on an effective rate of 30.9 per cent, which has beencalculated by reference to the projected charge for the full year. 5 Earnings per share Basic and diluted earnings per share have been calculated in accordance with IAS33 'Earnings Per Share'. The calculation of the basic and diluted EPS is based on the following data: Number of shares Six months to 30 September Year to ---------------------------- 31 March 2006 2005 2006 ------------------------------ --------- --------- --------- Weighted average number of ordinaryshares for the purpose of basic EPS 309.2 303.7 305.9Effect of dilutive potential ordinaryshares: share options 3.6 2.8 3.2Weighted average number of ordinaryshares for the purpose of diluted EPS 312.8 306.5 309.1------------------------------ --------- --------- --------- 6 Notes to the cash flow statement Six months to Year to 31 30 September March 2006 2005 2006 ---------------------------- ---------- ---------- ----------Reconciliation of operating profit to (unaudited) (unaudited) (audited)net cash from operating activities £m £m £m ---------------------------- ---------- ---------- ---------- Operating profit fromcontinuing operations 27.3 21.9 48.1Operating loss fromdiscontinued operations - (2.4) (2.4)Adjustments for:Share-based payment expense 0.6 0.3 0.7Pension charge 0.8 1.7 2.6Pension contributions (1.7) (1.4) (3.2)Depreciation of property,plant and equipment 5.9 4.6 9.8Amortisation of intangibleassets 0.8 - 0.2Gain on disposal of property,plant and equipment (0.6) (0.2) (0.6)---------------------------- ---------- ---------- ----------Operating cash flows beforemovements in working capital 33.1 24.5 55.2---------------------------- ---------- ---------- ---------- (Increase)/decrease ininventories (1.3) 0.4 (2.2)Increase in receivables (12.1) (34.2) (29.5)Increase in payables 6.4 36.2 31.2Increase in provisions 2.6 2.5 0.5---------------------------- ---------- ---------- ----------Cash generated by operations 28.7 29.4 55.2---------------------------- ---------- ---------- ---------- Additional pensioncontributions - - (7.8)Income taxes paid (8.5) (7.5) (15.1)Interest paid (1.2) - (0.2)---------------------------- ---------- ---------- ----------Net cash from operatingactivities 19.0 21.9 32.1---------------------------- ---------- ---------- ---------- 7 Purchase of minority interests -------------------- -------- -------- -------- -------- -------- MITIE MITIE Air MITIE Air MITIE Total Engineering Conditioning Conditioning Engineering Maintenance (London) Ltd (Wales) Ltd Services Retail Ltd (South West) £m £m £m £m Ltd £m -------------------- -------- -------- -------- -------- --------Minorityinterests 0.6 0.1 0.0 0.1 0.8-------------------- -------- -------- -------- -------- -------- Goodwill 1.6 0.3 0.1 0.1 2.1Total purchaseconsideration 2.2 0.4 0.1 0.2 2.9Shares issued- MITIE GroupPLC 1.8 0.4 0.1 0.2 2.5Deferredconsideration 0.2 - - - 0.2-------------------- -------- -------- -------- -------- --------Cashconsiderationbeing cashoutflow in theperiod 0.2 - - - 0.2-------------------- -------- -------- -------- -------- -------- During the period £1.9 million of deferred consideration was paid in respect ofMITIE Security (London) Limited (formerly MITIE Trident Security Limited). Inaddition, £8.9m of loan notes were issued to the original shareholders of MITIESecurity (London) Limited (formerly MITIE Trident Security Limited) in respectof the settlement of deferred consideration. Furthermore £0.8m of deferred consideration in respect of the purchase last yearof the minority shareholdings in MITIE Business Services Limited, MITIEEngineering Services (Swansea) Limited and MITIE Security (North) Limited wassettled by the issue of new MITIE shares. 8 Reserves Called-up Share Merger Revaluation Capital Other Share-based Retained Total share premium reserve reserve redemption reserve payment reserve earnings capital account reserve (i) £m £m £m £m £m £m £m £m £m ------------- ------- ------- ------ ------- ------- ------ ------- ------- -------At beginningof year 7.7 13.7 52.0 (0.2) 0.3 0.3 1.4 90.1 165.3 Shares issuedand netpremiumarising inrespect ofacquisitions 0.1 0.4 2.9 - - - - - 3.4 Shares issuedand netpremium inconnectionwith exerciseof shareoptions - 0.9 - - - - - - 0.9 Profit for theperiodattributableto equityholders of theparent - - - - - - - 17.0 17.0 Dividend paid - - - - - - - (7.6) (7.6) Expense inrelation toshare- basedpayments - - - - - - 0.6 - 0.6 Transfer inrelation toshare- basedpayments (0.5) 0.5 - ------------- ------ ------- ------ ------- ------- ------ ------- ------- ------- Net actuarialloss ondefinedbenefitschemes - - - - - - - (3.2) (3.2) Tax credit onitems takendirectly toequity - - - - - - - 1.0 1.0 ------------- ------- ------- ------ ------- ------- ------ ------- ------- ------Net expenserecogniseddirectly inequity in theperiod - - - - - - - (2.2) (2.2)------------- ------- ------- ------ ------- ------- ------ ------- ------- ------ Balance at 30September 2006 7.8 15.0 54.9 (0.2) 0.3 0.3 1.5 97.8 177.4------------- ------- ------- ------ ------- ------- ------ ------- ------- ------ (i) This is a non-distributable reserve END OF ANNOUNCEMENT This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mitie