Mitie Group Trading Statement

[idpickering]

Mitie Group plc ("Mitie"), the facilities management and consultancy business, today issues the following trading update.



"The Board has met for the past two days to review strategy and to consider the Group's trading outlook for the year as a whole. Property Management and Technical FM divisions have been impacted by client deferrals and investment plan delays, respectively, which are now expected to be fulfilled in 2Q 2017. Separately, it is clear that our Cleaning division is underperforming; management changes are being implemented.



In addition, the Board is undertaking a balance sheet review, and has taken a more conservative judgement on contractual positions, identifying an additional £14m of one-off charges in the year.



As a consequence of the above, we now expect underlying operating profit for the full year to 31 March 2017 to be in the range of £60m to £70m (including ongoing healthcare losses, but before the previously disclosed £10m one-off costs of change).



Despite these lower forecast earnings, we expect to continue operating within our contractual banking covenants.



The balance sheet review will also consider the potential impact of IFRS 15. Full year results for the twelve months ending 31 March 2017 and an update on our strategy will be announced on 24 May 2017. "

http://www.investegate.co.uk/mitie-grou ... 00124397U/

disc - No holding.

[Wizard]

"...we expect to continue operating within our contractual banking covenants..."

Not exactly the most comforting comment for the board to make, i.e. the fact they feel they need to explicitly state it rather than it being self evident. SP down about 9% as I write.

Terry.