Sept 19 Outsourced services provider Mitie Group
Plc lowered its full-year operating profit outlook on
Monday citing a reduction in higher margin project volumes and
spending by clients in the wake of Britain's vote to leave the
The company, whose healthcare services range from home care
for the elderly to hospital cleaning, said pricing and cost
pressures would cause first-half operating profit to be "very
significantly" lower, while revenue would be modestly lower.
Mitie said economic conditions in Britain were being
impacted by lower growth rates, changes to labour legislation,
public sector budget constraints and uncertainty about how
Britain will negotiate its exit from the EU.
"We are finding that the recent economic uncertainty is
currently driving clients to renew or extend larger contracts
with existing suppliers including Mitie, a trend we have seen
over the last 18 months, and to defer investment decisions," the
company said in a statement.
(Reporting by Esha Vaish in Bengaluru; editing by Jason Neely)