MITIE boosted by move into healthcare

MITIE Group, the FTSE 250 facilities, property and energy management firm, met headline profit forecasts with its full-year report on Monday, though statutory results were hit by an increase in one-off items as the company underwent a restructuring and made it first move into the healthcare market.

MITIE Group, the FTSE 250 facilities, property and energy management firm, met headline profit forecasts with its full-year report on Monday, though statutory results were hit by an increase in one-off items as the company underwent a restructuring and made it first move into the healthcare market.

The headline profit before tax in the year to March 31st rose 5.4% from £105.4m to £111.1m, in line with the £111.3m consensus forecast. However, after including 'other items', statutory profit before tax dropped 37.8% from £94.5m to £58.8m.

Other items comprised of costs relating to the exit of mechanical and electrical engineering contracting businesses, restructuring (including redundancy costs) and acquisition costs.

During the year the company tapped into the £8.0bn homecare market by purchasing Enara for £111m, which is expected to provide "an excellent platform for future growth" in the health and social-care sector. The integration is said to be going well with the business performing ahead of expectations.

This £43m of maiden healthcare revenue helped boost headline sales by 8.4% during the year from £1,826.3m to £1,980.6m.

MITIE said it is now well-positioned for growth and has already secured 85% of budgeted revenue in the 2013/14 year, up from 83% at the same time last year.

"We have had another good year with success in achieving organic growth driven by new and expanded contracts, as well as completing a strategic acquisition in healthcare," said Chief Executive Ruby McGregor-Smith.

"Whilst the economic environment remains challenging, we have reshaped the business to focus on long-term facilities management opportunities, as well as higher-margin healthcare provision and energy consulting, all of which will support our growth aspirations."

MITIE raised its final dividend by 9.6% to 5.7p per share, bringing the full-year dividend to 10.3p, up 7.3% on the year before.

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