27th Mar 2008 07:01
MITIE Group PLC27 March 2008 MITIE Group PLC - Pre-Close Trading Statement MITIE Group PLC ("MITIE"), a leading UK support services company, will enter aclose period on 1 April 2008. Financial performance MITIE is pleased to confirm that it has performed well in the second half ofthis financial year and has continued to trade in line with management'sexpectations. Market conditions and current trading Despite some uncertainty within the general economic climate in the UK, MITIEcontinues to see opportunities for growth in its own markets and within itsclient base. Where customers seek to enhance efficiency within their cost base,MITIE is well positioned to support this objective, particularly through thedelivery of wider scope, integrated facilities management and bundled contracts. A recent example of this within the Facilities Services division has been theexpansion of MITIE's relationship with a major retail bank where the scope andrange of services was increased significantly in March 2008 through the signingof a new five year integrated services contract with a total value of £85m.MITIE's existing cleaning contract for this bank's retail branch network hasbeen extended to include its corporate buildings. In addition, the range ofservices provided by MITIE across the client's estate has been extended toinclude waste management, pest control, internal tropical plants and externallandscaping. Acquisitions MITIE continues to seek acquisitions which enhance the scope and nationalcoverage of services that it can provide to its clients. Earlier this month, MITIE completed the acquisition of the entire issued sharecapital of both Catering Partnership Holdings Limited and DW Tilley Limited. Catering Partnership Holdings Limited is a Midlands based catering company withrevenue for the year ended 30 June 2007 of £11.9m. The company was acquired fromMr Harry Gadsden. The acquisition of Catering Partnerships Holdings complementsthe geographical coverage of MITIE's existing Catering business and results inthe creation of an enlarged Catering offering for MITIE, with annual revenues inexcess of £32m. Consideration of £6.6m was paid in cash on completion, withdeferred consideration of up to £2.3m payable in cash dependent on the futurefinancial performance of the acquired business. DW Tilley Limited is a national roofing contractor, based in the North East ofEngland with revenue for the year ended 31 October 2007 of £14.3m. The companywas acquired from Mr David Tilley and it complements MITIE's existing PropertyServices business and provides the Group with a national roofing presence. MrTilley will be retained by MITIE as the Managing Director of MITIE's enlargedroofing business. Consideration of £7.5m on a cash and debt free basis was paidin cash on completion. Deferred consideration of up to £5.0m is payable in cashdependent on the future financial performance of the acquired business. Results MITIE will announce its results for the year ending 31 March 2008, on Monday 19May 2008. For further information, please contact: David Revis, Investor Relations and PR ManagerT: 020 7034 7306 M: 07979 702465 John Telling, Head of Corporate AffairsT: 020 7034 7304 M: 07979 701006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mitie