Analyst Views: What did you make of Mitie’s full-year results?

 
Suzie Neuwirth

CAROLINE DE LA SOUJEOLE | CANTOR FITZGERALD

The headline numbers were broadly in-line with expectations but exceptional items are significantly higher than anticipated which raises questions over the quality of earnings. The shape of the group has changed significantly in recent years, and the business is now operating in more attractive markets.

JOE BRENT | LIBERUM

The order book and pipeline are both down five to six per cent, suggesting organic growth is likely to remain challenging. We also expect underlying margins – excluding acquisitions – to remain under pressure and believe Serco casts a shadow over the whole sector.

ANDREW GIBB | INVESTEC

The results show the benefits of the move away from lower margin, higher risk activities and a focus on its core facilities management offering, alongside entry into new growth markets. With the growing trend towards integrated services, Mitie looks well placed to drive profitable growth.

Related articles