Mitie Q3 results

Solid results from Mitie this morning. Mostly in line(which in my view is excellent as its a continuation of meaningful compounded growth). 10% revenue growth(4% organic) is very impressive in my opinion. It is also impressive to see that the Marlow revenues in Q3 are in line with where Marlow used to trade prior as a stand alone entity(£305m which is a quarter of the £76m which they reported just now). This is despite exiting bad/low margin revenue contracts(which could be seen also from the increase in revenue from the Q2 number of £51m). While the debt has increased, the company has significant free cash flow generation and could pay it at any point(despite the rate on the debt being 4.5% which is pretty reasonable given the prevailing rates currently). I have been adding to the shares on weakness for the past 1.5yrs and if I were below my target position I would be adding even more after today’s results. Long term buy

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