Mitie Share Discussion Threads

[alter ego] 19/3/2013 08:25

I've read that analysts think they overpaid for Enara and there's concern that it's a sector new to MTO. On the other hand, home care is clearly a potential growth market and you either trust management to make good decisions or you don't. I'll continue to hold until I lose that belief.

[melody9999] 19/3/2013 08:18

I understand there is concern over the care homes acquisition.

But this is the cut from the recent interims:
In healthcare, we purchased Enara for GBP110.8m on 9 October 2012. Enara provides high quality home care to people who require help and support due to illness, disability or infirmity and is the fourth largest provider of home care services in the UK. We are pleased with the way the integration of Enara is progressing and see significant long-term opportunities in the UK healthcare market. We are already experiencing client demand for more integrated homecare services.

We continue to expect Enara's revenue and operating profit before other items for the full year ending 31 March 2013 to be GBP93m and GBP10.1m, respectively.

I also read the MER report this am and see the care homes operation performing well with increased operating margin of 8.3%.

I buy the management's view that this is a good acquistion - does anyone else have a different perspective?

[thorpematt] 28/1/2013 11:07

Well it was one of those "everything is positive ones" wasn't it. Recently there's been a lot of lot of commentry relating to squeezed margins and to be fair that's true in some areas. But ultimately Mitie is very diversed and has agreat record of sustained growth.

MTO also benefits from the fact that aquisitions present increased database of clients - to give cross-selling of services.

Many have used the recent share price lull to add I suspect.

[alter ego] 28/1/2013 07:57

pretty good IMS today.

[sleveen] 01/1/2013 23:36

could be peeps closing short poitions and taking a decent profit. share price still looks like it's heading South IMHO.

[thorpematt] 17/12/2012 21:55

Stock on loan has been steadily falling. I assume it might be time to load back up?

[jones5] 23/11/2012 10:42

Re. the recent shareprice fall - in so many words I told you so. Don't think because you pay people well, give them shorter hours, perks etc. you can trust them and get good value. I can see what happens. Can anyone else? Does any other investor have an opinion on this?

[blueboy6] 22/11/2012 16:22

Boros10 - Aye well done mate. Errrr ERM, you sure? at this rate be another 15 years to break even. Time will tell of course but for now I'll stick with these. :O)

[melodrama] 21/11/2012 19:39

I would like to see the Board buying, they sound confident, so they should step up, at these prices one would have thought a no brainer for those quietly "in the know" order book bulging etc , i'm waiting for that kind of positive signal before jumping in.

[thorpematt] 21/11/2012 16:46

I prefer to call it "an opportunity".

I will probabl run a through updated calcs through in due course (FWIW) but yes not a great deal has changed IMO.

[mazarin] 21/11/2012 16:38

This has got to be something of a disappointing week so far on a share that normally, in my short expereince of holding, is not given to wild fluctuations...or so I thought. I've held MTO since June this year to see it creep up painfully slow to £3 only to see it come crashing down in a couple of days trading. Surely this has got to be a major over-reaction to bad news emanating from elsewhere in the sector....hasn't it..? MTO's position surely can't be as bad as others have recently posted within sector.

[boros10] 19/11/2012 13:38

It is a pity to have to say goodbye to an old friend but this is not the same business the late David Telling founded.

I think Mitie will be OK going forward - but its sheer scale makes it harder to grow quickly which has focussed my mind on its rather pedestrian returns on sales and average returns on assets and capital.

I have re-invested the proceeds in Euromoney ("ERM") which operates in a completely different sector. Both companies trade on 11.3x earnings but when you look at the Free Cashflow it is a very different picture. ERM trades on 9.4x its FCF per share vs MTO at 23.1x. Strong cash generation often leads to happy outcomes.

Operating margins are 24% at ERM vs 5% at MTO, returns on capital of 26% at ERM vs 16% at MTO and returns on tangible assets 84% at ERM vs 15% at MTO.

In excess of 50% of ERM's income is subscription based meaning it gets its income upfront. The only negative is falling advertising revenues on its paper publications but as the FT has discovered people are prepared to pay for well presented good quality specialist content online.

Sorry for going off topic but hopefully it explains the rationale for my decision today.

[melodrama] 19/11/2012 10:12

Excellent Boros, well done, possibly we are seeing a derating of the sector at the moment given Balfour recent release etc, not exactly the same as MTO by any stretch, but maybe finally the bloody Government bodies handing out these contracts are getting a little more savvy on behalf of taxpayer VFM

[essentialinvestor] 19/11/2012 09:52

Well done Boros, enjoy your gains.

[thamestrader] 19/11/2012 09:06

>>I also dislike seeing restructuring costs being booked as exceptionals. To me they are part and parcel of running a business.

Agreed, Boros. Many medium-large companies nowadays seem to be on a rolling programme of restructures, they are hardly exceptional.

[sleveen] 19/11/2012 08:44

You will have done very well from MTO over that period; Nice one Boros10. Looks like the market agrees with your decision to sell and your reasoning. Thanks for sharing.

[boros10] 19/11/2012 08:36

Just sold out having been invested here for 15 years. Growth is slowing and the greater emphasis on large and expensive acquisitions in recent years is changing the risk profile (the last deal was done was 11x adjusted EBIT). I also dislike seeing restructuring costs being booked as exceptionals. To me they are part and parcel of running a business.

The original management ownership model which made Mitie "Mighty" appears to have run its course.

Good luck to all those remaining onboard.

[melody9999] 19/11/2012 08:35

numbers not fantastic but outlook looking strong

[sleveen] 19/11/2012 07:43

distinctly modest figures today.

[thamestrader] 15/11/2012 14:15

How do you pronounce Mitie?

Mighty?
My tie?
Mitty?
Doesn't matter because it's doing OK in the recent turmoil?

[jones5] 10/11/2012 17:29

@ Thorpematt. The fuel into private car still goes on here but who would you tell in the Newcastle area? Could there be an legal explication for such behaviour and I could be sued? Or suffer violence if word spread?

Investors might wonder if this case is unique.

[thorpematt] 06/11/2012 14:50

Another very tidy contract win:-

[jones5] 28/10/2012 22:57

I am sure that MIS will keep petrol theft to a minimum. The very problem of the van, however, doesn't endear the name of Mitie to the residents here. A vehicle of these dimensions - a ladder to the roof, ladders on the roof, and "Highway Maintenance" with zig-zags to the rear,containing bedding as well as supplies, is an eyesore over the driver's three-day weekend.

How many such vans are around? Any legislation to force such vehicles into overnight depots will impact on the company. Mitie is, at the moment, saving money by relying on residents reluctance to complain, and their fear of any consequences. A sympathetic MP might make a difference.

Anyway I will stick with my shares for a little while longer.