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Mitie announces year end results and 'Beyond FM' strategy

14 June 2017

Greater stability has been recorded by Mitie in its year end results up to 31 March 2017, although one-off costs of its ongoing restructure exercises continue to make an impact.

Following the various profit warnings issued over the previous 12 months, adjusted revenue levels saw an increase of 0.3%, rising to £2.14bn compared to the 2016 results of £2.13bn.

Operating cash flow had also increased, rising by 31.8% to £151.1m compared to the figure of £114.6m for the previous 12-month period.

The company's net debt level had fallen by 17.4% to a figure of £147.2m from £178.3m in the 2016 financial year, showing the impact of cost-reduction exercises.

Its order book has also remained relatively stable, falling by 1% to £6.5bn compared to the 2016 level of £6.6bn.

However, the company's operating profit had fallen from £95.2m in 2016 to £82m for the latest financial year results, a reduction of 13.9% due to lower gross margin and increased overhead costs, the company reported.

Share dividends had also seen a considerable reduction, falling by 66.9% to 4p per share from 12.1p per share in the previous 12 months.

Additional costs incurred had included the £132.2m spent by Mitie to curtail its operations in the healthcare market.

Chief executive Phil Bentley said a "challenging year" had resulted in losses caused by "one-off accounting adjustments", but said he was encouraged by the stability of orders and increased pipeline opportunities.

"Following a full strategic review we are investing in technology in the workspace to meet our customers' evolving needs and we are embarking on a major cost reduction programme.

"With the support of our 53,000 colleagues, we will take Mitie 'Beyond FM . . . to the Connected Workspace'," said Mr Bentley, referring to the company's new strategy for the future.

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