Analyst Views: What did you make of Mitie’s trading update yesterday?

CAROLINE DE LA SOUJEOLE CANTOR FITZGERALD
There were no surprises in the update and there was little in terms of numerical information. The shares are trading on a price-earnings ratio of 11.5x times, compared to a peer group average of 12 times, which, in our view, fails to reflect the fact that the firm now operates in areas with higher margin and growth potential.
RONNIE CHOPRA TRADENEXT
A record order book and a strong management statement were not enough to drive the shares higher [yesterday]. With 89 per cent of the outsourcing firm’s budgeted revenues already secure, the company is in a very strong financial position and it is baffling that the shares did not rise.
JOE BRENT LIBERUM CAPITAL
Mitie has made a “good start to the year” with trading in-line with expectations. [However,] the rising level of exceptional charges, increasing capitalisation of mobilisation costs/long term receivables and the ever-present pressures on gross margin continue to concern us. We retain a cautious stance.