Updates from Petrofac, MITIE and Michael Page

Friday ended with a -4.4 point drop for the FTSE 100. The biggest riser overall was Barclays, up +2.49% while Bunzl was the biggest loser, down -4.63%.

On Monday today, Asian stocks struggled with the Hang Seng down -0.1% while the Japanese Nikkei flatlined on news that second quarter growth had cooled sharply.
First up, Petrofac. Revenues climb +20% to US$3.2 billion (2011: US$2.7 billion) while net profits climb +32% to US$325.3 million (2011: US$246.3 million). Diluted earnings per share climbs +32% to 94.82 cents.

In the past few months Petrofac says it has seen delays in certain contract tender processes with a number of anticipated awards moving from 2012 into 2013. It remains confident of achieving its target of more than doubling recurring Group 2010 earnings by 2015.

"Whilst these delays," says Petrofac CEO Ayman Asfari, "impact the expected level of 2012 new orders for Onshore Engineering & Construction, we continue to expect our strategy to deliver earnings growth in 2013 and beyond."

Next, outsourcer MITIE. It claims it has made a good start to the year with the commencement of its new contract with Lloyds Banking Group. At 30 June 2012 it claims 87% of budgeted revenues for this financial year has been secured.

In the private sector the sales pipeline "remains buoyant" and MITIE says it has been awarded and retained work including a new contract to provide front of house services at RBS for a term of five years, with an expected total value of £30m.

"Our strong balance sheet," the company says, "continues to provide us with capacity for the development of organic growth and for further value creating acquisitions should they arise."

Finally, recruiter Michael Page and a half year pretax profits dip. Group revenues for the six months to the end of June increased +0.1% to £502.6m (2011: £502.1m) while gross profit was dented 0.5% to £273.9m (2011: £275.1m).

Operating profits slipped to £36m from £45.5m while basic earnings per share drops -21% to 7.9p. "The second quarter," said the company, "saw a 4% increase in gross profit compared to the first quarter, against a tough comparator, with Q2 2011 having been our second highest quarter on record, with a growth rate of 32%."

Read Full Story