June 12 British outsourcing company Mitie
swung to a full-year operating loss on Monday after it
restated its accounts following a review prompted by a string of
profit warnings last year.
The provider of pest control, property cleaning, security
and ancillary healthcare undertook a review of its accounts and
strategy after issuing three profit warnings in a year, blaming
uncertainty surrounding Brexit and rising costs.
Mitie reported an adjusted operating loss of 42.9 million
pounds ($54.8 million) for the year ended March 31, down from a
restated year-ago profit of 107.6 million pounds. Adjusted
operating profit fell 13.9 percent to 82 million pounds.
The company restated year-ago results and booked a writedown
in May, after its accounts review found the way it booked
work-in-progress on long-term contracts and costs relating to
contracts was less conservative than rivals.
The company said it would not pay a final dividend. Its
full-year dividend for this year was 4 pence compared with 12.1
pence a year ago.
Mitie said on Monday announced a 45 million pound cost
efficiency programme and a partnership with Microsoft
to invest in technology to meet changing customer needs.
Chief Executive Phil Bentley, who took over as CEO in
December after Ruby McGregor-Smith's departure, said it had been
a "challenging" year for Mitie, but he expressed confidence for
the year ahead citing a strong order book and a growing pipeline
The company said it expected a return to modest growth in
underlying profit this year.
"With our new investment strategy, we believe that there is
a significant opportunity to transform Mitie into a more
focused, higher growth/higher margin business," Mitie said.
($1 = 0.7835 pounds)
(Reporting by Esha Vaish in Bengaluru, editing by Louise