Mitie Group is the UK’s largest facilities management (FM) company and it joined my personal portfolio and the UK Value Investor model portfolio way back in 2011.
In layman’s terms, Mitie provides corporate and government clients with outsourced services (mostly property-related such as maintenance, security and cleaning) so that its clients can focus on their core activities rather than non-core activities like fixing a boiler or cutting the grass.
When I bought Mitie in 2011, it had a long track record of impressive and steady growth, and that’s largely why I invested (my investment criteria are now much more demanding).
Mitie began its turnaround journey in 2017 with a dividend cut from 12p to 4p, and that’s where the dividend remains today.
That turnaround process is now largely complete, so the next few years will be the litmus test as to whether all the hard work restructuring the business has been worthwhile, and whether the dividend can be increased back to previous levels and beyond.
Personally I’m mildly optimistic, and I’ve outlined why at some length in this month’s Master Investor magazine: