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Outsourcing firm Mitie sees shares plunge

The company had seen a £45.1m profit during the same period last year but said that the rising costs of labour and the uncertain economic climate has had an impact on its business.

Mitie holds contracts for everything from cleaning to security with high profile governmental departments including the Ministry of Justice and the Home Office, as well as companies including Sainsbury’s and Manchester Airports Group.

It also said it would be reviewing its healthcare provisions – which have been struggling for several years – going forward and would be pulling out of the home care market altogether.

The company’s chief executive Ruby McGregor-Smith CBE, who is due to step down, commented: “The first half of this year has been difficult but we are not alone in facing significant macroeconomic challenges. 

“Second half performance is expected to improve with our new operating model as we adapt to market conditions.”

Despite an optimistic outlook from the management, Mitie is still expected to post full year profits that are “below management’s previous expectations”.

The results mark the firm’s second profit warning in a matter of months.

Mitie’s share price plummeted 17% on the news, although it recovered over the course of the day to close 9.5% down.

Article source: http://news.sky.com/story/outsourcing-firm-mitie-sees-shares-plunge-after-profit-warning-10666061

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