Disposal of Healthcare business

RNS Number : 1476Y

MITIE Group PLC

01 March 2017

 

This announcement contains inside information

1 March 2017

For immediate release

Mitie Group plc

("Mitie" or the "Group")

Disposal of Healthcare business to Apposite Capital

Mitie Group plc announces that it has disposed of the Group's UK social care division consisting of domiciliary care and homecare businesses, Enara Group Limited ("Enara") and Complete Care Holdings Limited ("Complete Care") to Apposite Capital LLP ("Apposite"), the specialist healthcare investor, for a cash consideration of £2 (the "Disposal").

In addition, the Group will contribute £9.45m to the funding of trading losses and the cost of the turnaround plan. This will be paid in two tranches with the first (£5.4m) on 1^st April 2017 and the second (£4.05m) on 1^st July 2017.

Enara, trading as MiHomecare, provides care at home for people who require help and support due to illness, infirmity or disability. It currently undertakes approximately 80,000 client visits per week. Enara's statutory loss before tax for the 12 months to 31 March 2016 was £11.5m. The value of gross assets at 31 March 2016 was £17.9m. Enara's revenue and operating loss for the 10 months to 31 January 2017 as per unaudited management accounts were £42.3m and £8.8m respectively.

Complete Care provides nurse-led, complex care solutions in the home. It currently serves approximately 100 clients across England and Wales. Complete Care's statutory loss before tax for the 12 months to 31 March 2016 was £0.2m. The value of gross assets at 31 March 2016 was £4.2m. Complete Care's revenue and operating loss for the 10 months to 31 January 2017 as per unaudited management accounts were £12.6m and £2.6m respectively.

In addition to the £115.3m impairment and write down of healthcare goodwill and acquisition related intangibles recognised in the Mitie Group plc September 2016 half-year results, there will be further losses in this financial year which are estimated to be £36.8m. These comprise forecast operating losses for the healthcare businesses of £12.5m for the 11 months to 28^th  February 2017, the £9.45m contribution to future losses and the turnaround plan, and £14.8m in respect of net asset write offs and the costs of separation, all of which will be recognised in the full year results.

The divestment of Enara and Complete Care follows the previously publicly communicated decision, as set out in the Group's interims announcement on 21 November 2016, by Mitie to withdraw from the domiciliary healthcare market. Throughout the review period and sale process, Enara and Complete Care have continued to operate in an orderly and responsible manner, prioritising high standards of patient care.

The Group will announce its preliminary results for the 12 months ending 31 March 2017 on 25 May 2017.

Enquiries:

Mitie Group plc

John Telling

Group Corporate Affairs Director

T: [phone]                       M: [phone]                     E: [e-mail] 

Anna Chen

Investor Relations Manager

T: [phone]                       M: [phone]                     E: [e-mail]

About Mitie Group

Mitie is a FTSE 250 business providing facilities management, real estate consultancy, project management and a range of specialist services, managing and maintaining some of the nation's most recognised landmarks for a range of blue-chip public and private sector customers.  

We work in partnership with organisations to deliver long-term savings, offering a wide range of services - from real estate and energy consultancy, compliance, risk assessment and security systems to cleaning, catering, engineering, technical and environmental services.

About Apposite Capital

Apposite Capital is an independent investment firm focused exclusively on healthcare. The firm operates at the small end of the private equity market, providing both capital and expertise to growth and buyout transactions. Fundamental to Apposite's philosophy is achieving high quality care to create market leaders in healthcare.

Apposite has an in-depth sector knowledge covering key aspects of the healthcare industry internationally coupled with local insights, an exceptional network and an entrepreneurial mindset which it applies to drive the growth of its portfolio companies.

Apposite was created in 2006 and is headquartered in London, UK.

 

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