MITIE Group PLC
27 March 2008
MITIE Group PLC - Pre-Close Trading Statement
MITIE Group PLC ('MITIE'), a leading UK support services company, will enter a
close period on 1 April 2008.
Financial performance
MITIE is pleased to confirm that it has performed well in the second half of
this financial year and has continued to trade in line with management's
expectations.
Market conditions and current trading
Despite some uncertainty within the general economic climate in the UK, MITIE
continues to see opportunities for growth in its own markets and within its
client base. Where customers seek to enhance efficiency within their cost base,
MITIE is well positioned to support this objective, particularly through the
delivery of wider scope, integrated facilities management and bundled contracts.
A recent example of this within the Facilities Services division has been the
expansion of MITIE's relationship with a major retail bank where the scope and
range of services was increased significantly in March 2008 through the signing
of a new five year integrated services contract with a total value of £85m.
MITIE's existing cleaning contract for this bank's retail branch network has
been extended to include its corporate buildings. In addition, the range of
services provided by MITIE across the client's estate has been extended to
include waste management, pest control, internal tropical plants and external
landscaping.
Acquisitions
MITIE continues to seek acquisitions which enhance the scope and national
coverage of services that it can provide to its clients.
Earlier this month, MITIE completed the acquisition of the entire issued share
capital of both Catering Partnership Holdings Limited and DW Tilley Limited.
Catering Partnership Holdings Limited is a Midlands based catering company with
revenue for the year ended 30 June 2007 of £11.9m. The company was acquired from
Mr Harry Gadsden. The acquisition of Catering Partnerships Holdings complements
the geographical coverage of MITIE's existing Catering business and results in
the creation of an enlarged Catering offering for MITIE, with annual revenues in
excess of £32m. Consideration of £6.6m was paid in cash on completion, with
deferred consideration of up to £2.3m payable in cash dependent on the future
financial performance of the acquired business.
DW Tilley Limited is a national roofing contractor, based in the North East of
England with revenue for the year ended 31 October 2007 of £14.3m. The company
was acquired from Mr David Tilley and it complements MITIE's existing Property
Services business and provides the Group with a national roofing presence. Mr
Tilley will be retained by MITIE as the Managing Director of MITIE's enlarged
roofing business. Consideration of £7.5m on a cash and debt free basis was paid
in cash on completion. Deferred consideration of up to £5.0m is payable in cash
dependent on the future financial performance of the acquired business.
Results
MITIE will announce its results for the year ending 31 March 2008, on Monday 19
May 2008.
For further information, please contact:
David Revis, Investor Relations and PR Manager
T: 020 7034 7306 M: 07979 702465
John Telling, Head of Corporate Affairs
T: 020 7034 7304 M: 07979 701006
This information is provided by RNS
The company news service from the London Stock Exchange
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