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Mitie expects M&E losses to rise

Mitie has warned losses from its mechanical and electrical engineering business are likely to be greater than expected in the second half of 2013.

In its interim management statement for the period from 1 October 2013, Mitie said losses from its M&E business in the second half of 2013 would be £3m to £5m higher than they were in the first half.

Last November, Mitie’s results for the six months to 30 September revealed declining revenues in its M&E business with £4.3m worth of losses during the period, although profits were up 13 per cent across the company as a whole.

At the time, it predicted losses to be lower in the second half of the financial year.

However, the exit from the M&E sector is taking Mitie “slightly longer than anticipated”, it said in the IMS.

Mitie said it is continuing to reposition the business to target higher-growth and higher-margin areas, including facilities management, property management and healthcare.

In addition to quitting the M&E sector, Mitie is continuing to reduce its exposure to the loss-making construction element of its asset management business.

The statement said: “We continue to re-position the group away from low-growth, low-margin activities and we remain very positive about the range of outsourcing opportunities across our key markets.

“Mitie is well positioned to deliver good organic growth, particularly in facilities management and healthcare, and maintain strong margins.”

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