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UK's Mitie to writedown up to 50 mln pounds after account review
May 3, 2017 / 6:43 AM / 7 months ago

UK's Mitie to writedown up to 50 mln pounds after account review

May 3 (Reuters) - Britain’s Mitie said on Wednesday it expected to writedown 40 million to 50 million pounds ($52 million to $64 million) and might restate its accounts for the year to March 2016 after an accounting review.

The provider of pest control, property cleaning and security services said its auditor KMPG had found the way it booked work-in-progress and recorded costs relating to contracts was less conservative than others in the market.

Mitie said it would also begin talks with its lenders to change its banking arrangement as it expected to have only limited headroom as of March 31 under its current contract.

The company undertook a review of its books after a difficult year, where uncertainty following the Brexit vote compounded pressure on the firm that has faced higher costs. It issued three profit warnings and overhauled its management. ($1 = 0.7754 pounds) (Reporting by Esha Vaish in Bengaluru; Editing by Edmund Blair)

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