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Preliminary announcement of results for the year ended 31 March 2017

Press Release   •  Jun 12, 2017 07:40 BST

Mitie Group plc

Moving “Beyond FM…to the Connected Workspace”, following a year of change

Preliminary results for the year ended 31 March 2017
Group Results Continuing operations FY17 FY16 Restated1 YoY change
Adjusted2
Revenue £2,140.0m £2,133.4m 0.3%
Operating profit £82.0m £95.2m -13.9%
Reported
Revenue £2,126.3m £2,146.9m -1.0%
Operating (loss) / profit before other items £(6.3m) £113.9m -105.5%
Operating (loss) / profit £(42.9m) £107.6m -139.9%
Basic (loss) / earnings per share (14.7p) 20.1p -173.1%
Operating cash flow £151.1m £114.6m 31.8%
Net debt £147.2m £178.3m -17.4%
Dividend per share 4.0p 12.1p -66.9%
Order book3 £6.5bn £6.6bn -1.0%
Sales pipeline4 £8.7bn £7.9bn 10.1%

1FY16 numbers have been restated to correct material errors found during the Accounting Review

2For this year an Alternative Performance Measure has been provided to adjust for one-off items in both FY17 and FY16 to reflect a more meaningful analysis of our Adjusted operating performance before other items. For details see Financial Review.

3 Basis for calculation of order book changed to remove anticipated unsecured work, now included in pipeline

4 Basis for calculation of pipeline changed to include anticipated unsecured work, no longer included in order book

Highlights

  • A strategic review has been conducted, a new strategy (“Beyond FM…to the Connected Workspace”) launched and a major £45m cost efficiency programme (“Project Helix”) is underway, led by a new management team and a refreshed Board
  • Adjusted Revenueof £2.14bn (FY16: £2.13bn) rose marginally in a challenging year, with our core Facilities Management business growing 3%
  • The Accounting Review has been completed with £34.5m of prior periods adjustments* (of which £20.9m expenses were restated in FY16). Within the reported operating loss, £88.3m of one-off items were recognised in FY17
  • The reported operating loss of £(42.9)m (FY16: profit of £107.6m) arises from the one-off accounting adjustments
  • Adjusted operating profit2, which provides a better like-for-like performance comparison, fell by £13.2m to £82.0m (FY16: £95.2m) due to lower gross margin (£10.7m) and increased overheads (£2.5m)
  • Year-end net debt position at £147.2m (FY16: £178.3m) has fallen; lender definition amendment agreed and covenants in compliance
  • The exit from the domiciliary healthcare market has been completed with a £132.3m loss from the discontinued operations
  • The Board is not recommending a final dividend. Total dividend for the year is 4.0p (FY16: 12.1p)

* Excluding healthcare goodwill of £26m

** Gross, before re-investments

Phil Bentley, Chief Executive of Mitie, commented:

“This has been a challenging year for Mitie. We have reported a loss as a result of the one-off accounting adjustments arising from the Accounting Review. We are now focused on the future of the business and I am encouraged that our Order Book has held up and our 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”.

_________________________________

For further information please contact:

John Telling, Group Corporate Affairs Director. M: +44 (0) 7979 701006 E: john.telling@mitie.com

Anna Chen, IR Manager. M: +44 (0) 781 852 7265 E: anna.chen@mitie.com

Mitie will be presenting its preliminary results for the year ended 31 March 2017 at 09.00 on Monday 12 June 2017. A live webcast of the presentation will be available online at www.mitie.com/investors at 09.00. The recorded webcast of the presentation and a copy of the accompanying slides will also be available on our website later in the day.

About Mitie

Mitie is a FTSE 250 business providing a wide range of facilities management and professional services, from real estate consultancy, project management, energy consultancy, compliance, risk assessment and security systems to cleaning, catering, engineering, technical and environmental services and a range of specialist services.

We work in partnership with organisations to deliver long-term savings, managing and maintaining some of the nation's most recognised landmarks for a range of blue-chip public and private sector customers.

We are the UK's largest Facilities Management Company employing some 53,000 people across the country.

Legal disclaimer

This announcement contains forward-looking statements. Such statements do not relate strictly to historical facts and can be identified by the use of words such as 'anticipate', 'expect', 'intend', 'will', 'project', 'plan', and 'believe' and other words of similar meaning in connection with any discussion of future events. These statements are made by the Directors of Mitie in good faith based on the information available to them as at 12 June 2017 and will not be updated during the year. These statements, by their nature, involve risk and uncertainty because they relate to, and depend upon, events that may or may not occur in the future. Actual events may differ materially from those expressed or implied in this document and accordingly all such statements should be treated with caution. Nothing in this document should be construed as a profit forecast.

Except as required by law, Mitie is under no obligation to update or keep current the forward-looking statements contained in this report or to correct any inaccuracies which may become apparent in such forward-looking statements.

This statement contains insider information.

About Mitie Group

Mitie is a FTSE 250 business providing facilities management, real estate consultancy, project management and a range of specialist services, managing and maintaining some of the nation's most recognised landmarks for a range of blue-chip public and private sector customers.

We work in partnership with organisations to deliver long-term savings, offering a wide range of services - from real estate and energy consultancy, compliance, risk assessment and security systems to cleaning, catering, engineering, technical and environmental services. 

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