 have issued their second profit warning, with half-year reporting revealing a £100 million pre-tax loss.){kind=link}
Mitie Group (LON:MTO) have issued their second profit warning, with half-year reporting revealing a £100 million pre-tax loss.
Following the disappointing numbers, the outsourcing company named “challenging market conditions” as a key factor behind falling profits and announced their intention to place its struggling healthcare division “under review”. However it would ensure its services “would continue to fulfill obligations”.
According to released figures, profits for second-half of the year are said to be 15 percent lower than analysts had initially forecast after the first profit warning. The company has seen a marked downturn to a pre-tax loss of £100.4 million in the six months to the end of September, from the £45.1 million revenue reported the year before.
In a statement, chief executive Ruby McGregor-Smith said:
“The first half of this year has been difficult.
“Second half performance is expected to improve with our new operating model as we adapt to market conditions.”
In addition however, she emphasized that difficulties still lie ahead:
“Due to ongoing market uncertainties, underlying earnings for [the full year] are expected to be below management’s previous expectations.” and ultimately such conditions had perpetuated “rising labour costs and economic uncertainty”.
Mrs McGregor-Smith announced her intention to step-down from her position following the company’s first profit warning and after over a decade spent in the role. She is set to be preceded by former British Gas boss Phil Bentley next month.
Mitie is an outsourcing group which is currently contracted by both the Ministry of Justice and Home Office. In early morning trading, shares in the company fell by an alarming 13 percent.