Mitie Group Sees FY Underlying Operating Profit Of GBP 60 Mln - GBP 70 Mln

(RTTNews) - Mitie Group plc (MTO.L) said that it expect underlying operating profit for the full year to 31 March 2017 to be in the range of 60 million pounds to 70 million pounds, including ongoing healthcare losses, but before the previously disclosed 10 million pounds one-off costs of change.

Despite lower forecast earnings, the company expects to continue operating within contractual banking covenants.

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 the second-quarter of 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 14 million pounds of one-off charges in the year. Separately, Mitie Group plc announced succession plans for the position of Group Finance Director.

Following the recent appointment of Phil Bentley as Chief Executive Officer, the Board can now announce that Suzanne Baxter will step down as Group Finance Director of Mitie and from the Board on 10 February 2017. The company said that Sandip Mahajan has been appointed to succeed her in the role.

Sandip joins Mitie today, and will assume the position of Chief Financial Officer and be appointed to the Board on 10 February 2017.

Sandip brings a wide range of financial and accounting experience, including most recently at Balfour Beatty PLC, where he served as Group Director of Finance from 2013-16 and held other roles in project and structured finance in the successful Investments Division from 2005 - 2013. He was previously at Ernst & Young and British Airways Plc.