Mitie shares jump as pipeline improvement offsets considerable full-year operating losses
Companies: MITIE Group PLC
Shares in Mitie Group jumped 8% on Monday after its final results showed an improving pipeline and order book that offset a challenging year for the Group that saw it slump to considerable losses after significant one-off accounting adjustments.
Today's update follows a series of profit warnings from the FTSE 250 firm since the end of last year.
For the period ending 31 March, adjusted revenue rose marginally, up 0.3% to £2.14bn, but operating profit fell 14% to £82m after a challenging year.
On a reported basis, total revenues decreased 1%, with a 105% drop in operating profit and a swing to a loss of £6.3m as a result of one-off accounting adjustments.
The group's net debt position fell to £147m, and it is not recommending a final dividend, meaning the total dividend for the year is 4p, a third of the 12p/share paid out last year.
CEO Phil Bentley said it had been a challenging year, with a swing to a loss after one-off accounting adjustments arising from the Accounting Review. He added that the company was focused on the future and that its order book and pipeline is growing:
"Following a full strategic review we are investing in technology in the workspace to meet our customers' evolving needs, and we are embarking on a major cost reduction programme. With the support of our 53,000 colleagues, we will take Mitie "Beyond FM…to the Connected Workspace".
