EUR 203.58 For Business Accounts Only

Manutencoop - Decent 3Q17 but legal issues cloud short-term outlook

Manutencoop, the Italian cleaning firm, reported decent 3Q17 results as sales were stable at €209m while EBITDA gained 9% to €20m on cost savings, giving a 9.5% margin (+70 bps yoy). After disappointing results for the previous quarter, the group has bounced back somewhat, to levels similar to those seen at the beginning of the year. However, tender processes and contract awards remain disturbed by accusations of corruption shaking the sector. The volatility over the quarters reflects the lack of clear directional trends, performance being dependent on contract awards. For example, demand from healthcare entities (50%) was flat, for lack of new awards. Sales generated by private companies (25%) were down 4% yoy, following the downsizing of existing contracts such as with Telecom Italia, unlike public institutions (25% of sales), which were up 4% yoy, helped by the start-up of new contracts won earlier in the year.