MITIE Group PLC Disposal of Healthcare business (1476Y)
March 01 2017 - 2:01AM
UK Regulatory
TIDMMTO
RNS Number : 1476Y
MITIE Group PLC
01 March 2017
This announcement contains inside information
1 March 2017
For immediate release
Mitie Group plc
("Mitie" or the "Group")
Disposal of Healthcare business to Apposite Capital
Mitie Group plc announces that it has disposed of the Group's UK
social care division consisting of domiciliary care and homecare
businesses, Enara Group Limited ("Enara") and Complete Care
Holdings Limited ("Complete Care") to Apposite Capital LLP
("Apposite"), the specialist healthcare investor, for a cash
consideration of GBP2 (the "Disposal").
In addition, the Group will contribute GBP9.45m to the funding
of trading losses and the cost of the turnaround plan. This will be
paid in two tranches with the first (GBP5.4m) on 1(st) April 2017
and the second (GBP4.05m) on 1(st) July 2017.
Enara, trading as MiHomecare, provides care at home for people
who require help and support due to illness, infirmity or
disability. It currently undertakes approximately 80,000 client
visits per week. Enara's statutory loss before tax for the 12
months to 31 March 2016 was GBP11.5m. The value of gross assets at
31 March 2016 was GBP17.9m. Enara's revenue and operating loss for
the 10 months to 31 January 2017 as per unaudited management
accounts were GBP42.3m and GBP8.8m respectively.
Complete Care provides nurse-led, complex care solutions in the
home. It currently serves approximately 100 clients across England
and Wales. Complete Care's statutory loss before tax for the 12
months to 31 March 2016 was GBP0.2m. The value of gross assets at
31 March 2016 was GBP4.2m. Complete Care's revenue and operating
loss for the 10 months to 31 January 2017 as per unaudited
management accounts were GBP12.6m and GBP2.6m respectively.
In addition to the GBP115.3m impairment and write down of
healthcare goodwill and acquisition related intangibles recognised
in the Mitie Group plc September 2016 half-year results, there will
be further losses in this financial year which are estimated to be
GBP36.8m. These comprise forecast operating losses for the
healthcare businesses of GBP12.5m for the 11 months to 28(th)
February 2017, the GBP9.45m contribution to future losses and the
turnaround plan, and GBP14.8m in respect of net asset write offs
and the costs of separation, all of which will be recognised in the
full year results.
The divestment of Enara and Complete Care follows the previously
publicly communicated decision, as set out in the Group's interims
announcement on 21 November 2016, by Mitie to withdraw from the
domiciliary healthcare market. Throughout the review period and
sale process, Enara and Complete Care have continued to operate in
an orderly and responsible manner, prioritising high standards of
patient care.
The Group will announce its preliminary results for the 12
months ending 31 March 2017 on 25 May 2017.
Enquiries:
Mitie Group plc
John Telling
Group Corporate Affairs Director
T: +44 (0)203 123 8673 M: +44 (0)7979 701 006 E: john.telling@mitie.com
Anna Chen
Investor Relations Manager
T: +44 (0)203 123 8675 M: +44 (0)7818 527 265 E:
anna.chen@mitie.com
About Mitie Group
Mitie is a FTSE 250 business providing facilities management,
real estate consultancy, project management and a range of
specialist services, managing and maintaining some of the nation's
most recognised landmarks for a range of blue-chip public and
private sector customers.
We work in partnership with organisations to deliver long-term
savings, offering a wide range of services - from real estate and
energy consultancy, compliance, risk assessment and security
systems to cleaning, catering, engineering, technical and
environmental services.
About Apposite Capital
Apposite Capital is an independent investment firm focused
exclusively on healthcare. The firm operates at the small end of
the private equity market, providing both capital and expertise to
growth and buyout transactions. Fundamental to Apposite's
philosophy is achieving high quality care to create market leaders
in healthcare.
Apposite has an in-depth sector knowledge covering key aspects
of the healthcare industry internationally coupled with local
insights, an exceptional network and an entrepreneurial mindset
which it applies to drive the growth of its portfolio
companies.
Apposite was created in 2006 and is headquartered in London,
UK.
This information is provided by RNS
The company news service from the London Stock Exchange
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