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Risk Warning
23/05/2011
Shares in Mitie Group (MTO.L) gain 4.4 percent as the construction and outsourcing firm says increased demand for bundled services helped boost its full-year profit, with CFD specialist Prime Markets repeating its "buy" stance on the stock in response.
Mitie, which provides services from cleaning to engineering, posts a 15.3 percent rise in profit before tax and other items to 105.7 million for the year to March 31, with revenue up 10 percent to 1.89 billion pounds.
"Mitie shares have had something of an up and down year, falling sharply after the January interim management statement after the group reported little recovery in its cyclical markets within Property Management and a risk of some delay in delivering both secured and prospective project work before the year end," says Ben Timms, head of sales at Prime Markets.
However, Timms thinks the "fine set of full year results" should lay any uncertainties and fears to rest, as Mitie have delivered improved profits, revenues, EPS and dividend, while reducing debt and boosting its order pipeline.
"In the opinion of Prime Markets, CEO Ruby McGregor-Smith probably overstated the downside in the January interim statement, and we take the view now that she may well be understating the potential upside on offer," Timms adds, with Prime Markets setting a 235 pence short/medium term target on Mitie.
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