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Thu May 06 2021

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Mitie restructuring takes shape

20 Sep 17 Troubled facilities management contractor Mitie is shedding 480 jobs and has put its property management business up for sale.

Mitie has instructed Evercore Partners International to explore a potential sale of its property management business, having already received expressions of interest from third parties.

The new management’s transformation programme also includes outsourcing certain accounting and finance functions, automating many administration activities, rationalising the corporate structure by cutting tiers of management and consolidating three London offices into a single new office in the Shard.

This ‘Project Helix’ transformation programme is expected to cut group operating costs by £40m a year by 2020.

With Deloitte’s auditing of Mitie’s accounts now being investigated by the Financial Reporting Council, Mitie has brought in BDO as its new auditor.

In a trading update, Peter Dickinson, acting CEO while Phil Bentley is off sick with a ruptured appendix, said: "Overall we are making steady progress in the transformation of Mitie. Top line growth in the first six months has been encouraging, our dedicated focus on putting customers at the heart of our business and identifying cost savings is beginning to deliver and we are investing at pace in talent, capabilities and systems. Transforming a large, diverse business such as Mitie is neither linear nor without challenges, but the programme remains on track. I expect to see the positive impact of our endeavours as we move into the second half of the year.”

Mite made a loss of £183.2m in the year to 31st March 2017.

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