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23 January 2018
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MITIE REMAINS UPBEAT OVER STRATEGIC REVIEW OF GROUP OPERATIONS

Mitie results
Mitie is selling its property management division

21 September 2017 | Herpreet Kaur Grewal


Facilities management, workplace and professional services firm Mitie is looking at options to sell its property management business.

 

The information was issued in a pre-close statement for the half-year ended 30 September, which stated: “As part of the wider strategic review of the group's operations, Mitie is continuing to examine options for its property management business. Mitie has now instructed Evercore Partners International LLP to explore a potential sale of the business, having received expressions of interest from third parties.”

 

The release also said that the firm’s order book is up 3 per cent against 31 March 2017 at £6.7 billion.

 

This includes new contract awards from a multinational grocery retailer, an e-commerce and cloud computing company, and a major homewares and household goods retailer. This has been in part been offset by the loss of a top 20 contract that was not due for retendering until 2019. This lost contract will result in a one-off non-cash write-off of £6 million. 

 

In its statement Mitie said it anticipated “receipt of a termination payment of £2m”.  It also said its cost base was “on track” and investing in technology and connected workplace capabilities were ahead of plan, and that it was behind a plan to improve employee engagement and productivity.

 

Peter Dickinson, Mitie’s acting CEO, said: "Overall we are making steady progress in the transformation of Mitie. Top-line growth in the first six months has been encouraging, our dedicated focus on putting customers at the heart of our business and identifying cost savings is beginning to deliver and we are investing at pace in talent, capabilities and systems. 

 

“Transforming a large, diverse business such as Mitie is neither linear nor without challenges, but the programme remains on track. I expect to see the positive impact of our endeavours as we move into the second half of the year."