Tuesday 31st March 2015
Palm to forehead (THWACK) for holders of Mitie this morning.
I reckon somewhere below 200 pennies beckons.
|Mitie share price|
Of course the bigger reveal will be from its prelims, due to be announced on 18 May 2015. I suspect investors will recoil in horror yet again as weak cash performance is likely laid bare and the receivables shoved in to long term, down the road kind of hopefulness is shown to have grown further still.
Below is a recap of where matters stood at the half year stage. And a reminder of how Connaught's long term receivables grew.
|Mitie total amounts recoverable on contracts and other trade receivables classed as non-current assets, £m|
Source: Mitie annual and interim reports
|Connaught's amounts recoverable on contracts classed as non-current assets, £m|
Source: Connaught annual reports
|Mitie's free cash flow performance on half year basis and |
Bloomberg consensus implied expectation for H2 2015 (March year end), £m
Source: Mitie annual and half year reports, Bloomberg
And another thing
They do say that profit warnings come in threes. I've always found this ring true.
I'm short Mitie.
Disclaimer: The information, discussions or topics referred to on this blog should in no way be considered “advice” to buy or sell anything. The information which may be referred to is freely available in the public domain and where required the source of information is referenced to for verification. While every effort has been made to ensure the veracity of any information contained within this blog, the author accepts no responsibility for the accuracy of any information contained within this blog or for the sources of information which may be referred to. Readers are responsible for their own actions and interpretation of the information contained within this blog.