Mitie trading in line with expectations

30th Jan 2012 07:42

Outsourcing and energy services company Mitie said revenues and earnings had come in in line with expectations from 1 October 2011 to date.Mitie said its private sector sales pipeline remained buoyant and it have been awarded and retained work across a range of markets including recent deals with Friends Life and LV=.In the public sector it said there was still a steady flow of contract awards and retentions."We are optimistic about the continued opportunities for growth for Mitie, but recognise the wider uncertainties in the global economy and in certain of our more cyclical markets," the firm said in a statement. "The search for cost and energy efficiencies is a priority for governments and businesses across our markets, and delivering better quality services, innovation and efficiency is core to what we do."In November Mitie announced revenues had grown 5.8% in the six months to the end of September, compared to the equivalent period of 2010. Revenue for the half year hit £971.7m. The firm, which provides services like waste management, security and energy efficiency certification for clients' buildings, also achieved profit before tax of £43.3m, a rise of 17.3%. On adding "other items", however, the profit figure was not quite as spectacular, growing at just 0.8%. Broker Panmure Gordon described the third quarter statement as "another solid update" and reiterated its "hold" recommendation, while leavng its earnings forecasts unchanged."While the longer term prospects for outsourcingremain strong, the immediate view is more uncertain. The shares have had a strong run and we recently reduced our recommendation to neutral," the broker said.Prime Markets, a contracts for difference broker, has long been a fan of Mitie, and views the charting configuration as an ideal guide for picking up the shares on any weakness. "Buy with a 4-6 week target of 282p," is the view of Richard Curr, head of dealing at Prime Markets.Shares were trading at 254.1p, down 9p, in the afternoon trading session.