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Shares in Mitie (MTO) are down eight per cent after the group revealed its order book had dropped by a tenth in the year to March 2019. Management expects revenue growth of 7-8 per cent over the year, with four per cent organic growth. Assuming growth of 7.5 per cent, this would leave sales at £2.18bn, short of analyst Peel Hunt’s forecast of £2.2bn. Adjusted operating profit is expected to be between £84-87m. The announcement will increase scrutiny of the outsourcer. After the collapse of Carillion and Interserve, short positions against both Mitie and Babcock (BAB) remain high. Sell.
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