Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  MITIE Group    MTO   GB0004657408

MITIE GROUP

(MTO)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Mitie : sells catering and hospitality unit, shares to rise

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/19/2019 | 02:37am EDT

(Reuters) - British outsourcer Mitie Group Plc said on Monday it had agreed to sell its catering and hospitality business to CH&CO for up to 85 million pounds in cash, as it pushes ahead with moves to simplify its operations.

The sale to CH&CO, which provides catering services to Britain's Queen Elizabeth, follows a strategic review of the business, Mitie said in a statement.

Shares in the company, going through a transformation under Chief Executive Phil Bentley after a series of profit warnings two years ago, were expected to rise 1% at opening, according to traders.

"Mitie's strategy is to invest in our core technology-led facilities management services - such as security, cleaning and engineering services - where we have a leading market position," Bentley said.

He said the deal with CH&CO would ensure competitive pricing for the catering unit's customers and, for Mitie, would free up funds for reinvestment and strengthen its balance sheet.

"Net debt to core earnings should fall by 0.6 times, which is important as Mitie's balance sheet has been a key share price driver over the past few years," Jefferies analysts said.

Bentley has fathered a rationalisation and cost-saving drive at the company since he took over as CEO at the end of 2016.

The catering unit reported audited revenues of 136.1 million pounds and pretax profit of 4.1 million pounds in the year ended March. CH&CO will report revenue of about 300 million pounds for the year ended Dec. 31, 2018.

The staff and senior management team of Mitie Catering, will transfer to CH&CO and will continue to run the business, the company said.

The unit employs more than 3,600 people at about 330 sites across the UK and Ireland, while CH&CO employs about 6,500 people at more than 780 locations.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur and Patrick Graham)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MITIE GROUP
05:02aMITIE : to provide nationwide security services for HMRC
PU
09/12MITIE : Extends Lloyds Contract
DJ
09/11MITIE : Eco benefits lead the charge as top reason fleet drivers want to switch ..
PU
09/11MITIE : UK outsourcer Mitie Group loses finance head to CPA Global
RE
08/19LONDON STOCK EXCHANGE : Oil majors, banks lead FTSE 100; Greene King soars on M&..
RE
08/19LONDON MARKETS: Stimulus Chatter Lifts U.K. Stocks
DJ
08/19MITIE : sells catering and hospitality unit, shares to rise
RE
08/13Mears Group first half profit falls, new contracts boost order book
RE
08/08MITIE : Gather & Gather expands Primark relationship with new ‘Primarket C..
PU
08/02MITIE : Security acquires Global Aware International Group
PU
More news
Financials (GBP)
Sales 2020 2 232 M
EBIT 2020 83,2 M
Net income 2020 42,6 M
Debt 2020 77,9 M
Yield 2020 2,60%
P/E ratio 2020 -
P/E ratio 2021 -
EV / Sales2020 0,28x
EV / Sales2021 0,27x
Capitalization 556 M
Chart MITIE GROUP
Duration : Period :
MITIE Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MITIE GROUP
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 187,78  GBp
Last Close Price 154,00  GBp
Spread / Highest target 85,1%
Spread / Average Target 21,9%
Spread / Lowest Target -5,84%
EPS Revisions
Managers
NameTitle
Phillip Keague Bentley Group Chief Executive Officer & Executive Director
Derek Mapp Non-Executive Chairman
Paul P. Woolf Chief Financial Officer & Executive Director
David Cooper Chief Information Officer
Nivedita Krishnamurthy Bhagat Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
MITIE GROUP39.24%694
CINTAS CORPORATION48.62%26 172
TELEPERFORMANCE39.76%12 643
EDENRED35.94%11 749
BUREAU VERITAS SA24.19%10 922
INTERTEK GROUP12.75%10 872