MITIE plc is a UK FTSE 250 business Essay

There are three main line variabilitys of the grouping which are 1) strategy & consultancy, 2) facilities and project counsel and 3) services. The facilities management group includes task services, catering services, cleaning, facilities management, landscaping, Pest control, PFI, and security. Under the property management division the attach to offers building refurbishment, fit-out, roofing and maintenance. Under the asset management division the social club offers services such as mechanical and electrical engineering & maintenance, nothing generation and management, ICT and infrastructure. Strategy Review of the Company.In 2009 the smart sets business had a 59% and 41% ratio of private and public clients respectively. This flare is in names of revenues and the companionship believes as the government expenditure is a major proportion of the congeries GDP therefore this split baron change in the short-run. The association believes that the next 12-18 months would be a delicate time as the world economic situation remains uncertain. However, the major focus of companies (clients) is on cost cutting and cost optimization. (Annual Report MITIE, 2009) In the transport and logistics sector the companys main client metrical unit includes BAA, FirstGroup and Euro-star.The size of the target mart is 11 jillion Pound greatest and the companys share is 0. 7%, social housing is some other sector which offers great amount of opportunities this is because the government has a number of programmes to hand over better housing facilities and maintenance facilities. The government has a number of plans in partnership with the Homes and Communities Agency to support communities and the local governments. Healthcare is also an alpha market for the company as the higher takes of ageing population of UK testament spend a lot on healthcare facilities and create opportunities for outsourcing.The market share was 0. 8% in 2009 for the company out of a tota l market size of 11 billion pounds. (Annual Report MITIE, 2009) Financial analytic thinking for 2008, 2009 of MITIE The revenue of the company in 2008 was 1. 4 billion pounds and it annexd to 1. 521 billion in 2009 which is an 8. 2% rise on a year on year (YoY) basis. In terms of the business segments the highest revenues were recorded in the facilities management sector in both 2008 and 2009 with 2008 revenues exceeding 820. 4 cardinal pounds and 2009 revenues for the facilities division topping 942 million pounds.A major change was the increase in margin contribution from property management services from 5. 3% in 2008 to 6% in 2009. From the total revenues of 1. 52 billion pounds, 297. 9 million were from property management and 281. 8 million were from asset management in 2009. The net internet margin for the year 2009 was 3. 57% whereas the net profit margin for 2008 was 3. 4%. The operating profit for the company increased from 70. 3 million pounds in 2008 to 78. 6 million pounds in 2009. This represented an increase of 11. 8% in the operating profits of the company. It is an indication of the higher level of productive efficiency at the company.The basic EPS (Earning per Share) increased by 16. 8% from 2008 to 2009. In 2009 the basic EPS was 16. 7p. The dividend per share in 2008 was 6. 0p and it increased to 6. 9p in 2009. The true ratio for 2008 was 1. 007 which meant that on aggregate there were more current assets for sale to pay off current liabilities. But an important thing that was observe the fact that trade and receivables in 2008 were 314. 4 million pounds which is active 87. 5% of the total current assets. This means that the company is dependent on the timely payment from debtors in order to pay off creditors and other short-run liabilities.The 2009 current ratio for the company stood at 1. 09 which represents a slight overture from the previous year. One of the main reasons for the slight improvement was that trade payables decl ined roughly in 2009 compared with the year end 2008 figure. In 2008 long-term liabilities as a percentage of total assets stood at 6. 2% which means that a rattling small amount of assets were being financed by long-term liabilities this also implies that the company has a potential to leverage its position and benefit from cheaper capital and fix tax savings.In 2009 the long-term liabilities to total assets ratio decreased to about 5% which again implies a declining trend toward a long term borrowing regime. The company follows certain guidelines to ensure best practices in the cash in hand of the company. It follows a number of key performing indicators (KPI) the vicissitude of EBITDA to cash is some other financial KPI. This is an important indicator of a companys succeeder because the long-run sustainability of operations is dependent on positive cash flows that the company will ultimately generate.The company converted 97. 5% of its EBITDA (Earnings before interest, tax , derogation and amortization) to cash for the year ended 31st March 2009. The same conversion rate was 90. 3% in the year 2008. The company also account operating cash of 94. 4 million pounds in 2009 which represents an increase of 20. 7% in operating cash from previous year levels. This also shows that the company has improved its ability to meet its debt obligations throughout the two years and it has trim down its interest costs in the process.