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Sun May 19 2024

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Mitie backs away from M&E

19 Nov 12 Mitie, once thought of as a building services company, is increasingly moving towards softer services and away from construction-related activities.

Chief exec Ruby McGregor-Smith
Chief exec Ruby McGregor-Smith

The diverse support services company has decided it will no longer take on large, one-off mechanical and electrical engineering installation projects. A review of operations concluded that this business “does not help us deliver our strategy or meet the performance targets of the group”, said chief executive Ruby McGregor-Smith.

M&E activity has already been reduced and will be scaled back further over the next two to three years.

Mitie also reviewed and restructured the overhead cost base within it technical facilities management and property management divisions and spent £4.8m on scaling these back too.

By contrast, it spent £11m last moth buying a home care business, Enara, which helps the sick, disabled and infirm in their own homes.

For the six months to 30 September 2012, Mitie’s revenues were up 5.6% to £1,027m. Pre-tax profits were down 13% to £37.7m.

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