'MITIE plc is a UK FTSE 250 business Essay\r'

' at that place are three main business divisions of the convention which are: 1) strategy & consultancy, 2) facilities and project attention and 3) services. The facilities worry group includes business services, catering services, cleaning, facilities commission, landscaping, expletive control, PFI, and security. Under the property focal point division the keep confederacy impinge oners building refurbishment, fit- divulge, roofing and tending. Under the asset management division the telephoner offers services such as mechanical and electrical engineering & maintenance, verve generation and management, ICT and infrastructure. Strategy Review of the Company.\r\nIn 2009 the family’s business had a 59% and 41% ratio of private and public nodes respectively. This split is in terms of revenue enhancementations and the lodge believes as the government disbursement is a major proportion of the fall gross domestic product therefore this split might change in the short-run. The company believes that the next 12-18 months would be a surd time as the world economic bureau remains uncertain. However, the major focus of companies (clients) is on make up cutting and cost optimization. (Annual Report MITIE, 2009) In the rapture and logistics sector the company’s main client base includes BAA, FirstGroup and Euro-star.\r\nThe size of the target mickle is 11 billion Pound Sterling and the company’s 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 provide better housing facilities and maintenance facilities. The government has a number of plans in coalition with the Homes and Communities Agency to support communities and the local governments. Healthcare is in addition an important market for the company as the higher(prenominal) levels of ageing population of UK will spend a lot on healthcare facilities and create opportunities for outsourcing.\r\nThe market share was 0. 8% in 2009 for the company out of a total market size of 11 billion pounds. (Annual Report MITIE, 2009) Financial Analysis for 2008, 2009 of MITIE The revenue of the company in 2008 was 1. 4 billion pounds and it increase to 1. 521 billion in 2009 which is an 8. 2% rise on a socio-economic class 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 meg pounds and 2009 revenues for the facilities division topping 942 million pounds.\r\nA major change was the increase in shore 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 profit margin for the year 2009 was 3. 57% whereas the net profit margin for 2008 was 3. 4%. The run profit for the company change magnitude from 70. 3 million pounds in 2008 to 78. 6 million pounds in 2009. This represent an increase of 11. 8% in the operating internet of the company. It is an indication of the higher level of productive capability at the company.\r\nThe 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 actual ratio for 2008 was 1. 007 which meant that on summation there were more current assets available to establish off current liabilities. But an important matter that was noticed the fact that trade and receivables in 2008 were 314. 4 million pounds which is about 87. 5% of the total current assets. This means that the company is dependent on the apropos payment from debtors in order to pay off creditors and other short-term liabilities.\r\nThe 2009 current ratio for the company stood at 1. 09 which represen ts a slight improvement from the preceding year. One of the main reasons for the slight improvement was that trade payables declined slightly in 2009 compared with the year end 2008 figure. In 2008 semipermanent liabilities as a percentage of total assets stood at 6. 2% which means that a genuinely small amount of assets were being financed by long-term liabilities this as well implies that the company has a potential to leverage its position and benefit from cheaper capital and ensure tax savings.\r\nIn 2009 the long-term liabilities to total assets ratio fall to about 5% which again implies a declining edit out toward a long term borrowing regime. The company follows certain guidelines to ensure best practices in the capital in hand of the company. It follows a number of key performing indications (KPI); the spiritual rebirth of EBITDA to cash is another financial KPI. This is an important indicator of a company’s success because the long-run sustainability of op erations is dependent on positive cash flows that the company will ultimately generate.\r\nThe company reborn 97. 5% of its EBITDA (Earnings before interest, tax, depreciation and amortization) to cash for the year ended 31st March 2009. The same mutation rate was 90. 3% in the year 2008. The company also reported 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 end-to-end the two years and it has reduced its interest cost in the process.\r\n'