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Thu May 28 2020

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Costly restructuring cuts Mitie's losses

7 Jun 18 Facilities management contractor Mitie has reported a pre-tax loss of £24.7m for the year to 31st March 2018.

Thanks to actions put in train by the new management, Mite’s losses were less than half what they were the previous year (2017: £58.2m).

Operating loss was £8.3m (2017: £42.9m). Revenue for the year was up 3% to £2,203.7m.

The results include £47.3m spent on restructuring the business and £34.6m impairment of goodwill.

Chief Executive Phil Bentley, who took over from Ruby McGregor Smith in December 2016, said: "We are one year into our transformation programme and we are where we need to be. It has been a year of discovery, simplification and significant change, all set against a challenging market. We have made much progress, building the foundations that will ensure that Mitie is at the forefront of the UK facilities management industry.

"Our core business has demonstrated its strength and resilience and is performing well, our commitment to strong financial management remains unwavering and our focus on costs, customers, technology and our people is delivering tangible benefits.

"With an uptick in revenue, a normalising balance sheet, a good order book, a focused execution plan, significant investment in technology and a settled management team, I believe Mitie is well positioned for growth."

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