Spotless says its profit is underestimated

Takeover target Spotless Group says brokers are currently underestimating the company's expected underlying profit for next financial year.

Cleaning and catering firm Spotless Group has again urged its shareholders to reject a $1.26 billion takeover offer from Downer EDI, saying it does not reflect the company's earnings expectations.

The company has confirmed its profit target of between $80 million and $90 million for this financial year, and says it will increase to a range of $85 million to $100 milliion in 2017/18.

That is above current average broker forecasts of $83 million, Spotless said.