Facilities management specialist Mitie has revealed it made an operating loss of £42.9m and cut 3,000 staff in the 12 months to 31 March 2017.
The company’s latest full-year results also recorded a dip in revenue to £2.13bn, down from £2.15bn a year earlier, while the £42.9m operating loss represented a significant decline after an operating profit of £112.5m in its previous annual results.
Mitie is now halfway through a £45m cost efficiency programme after what it described as “a challenging year,” with the firm also cutting staff numbers from around 59,300 last year to 56,300 this year.
The company had already announced plans in May this year to cut 160 jobs ahead of its full-year results.
In its engineering services business, Mitie saw revenue dip slightly to £797.4m, down from £800.3m a year earlier, while operating profit slipped to just £0.2m, down from £53.7m.
However, the division reported an order book of £3.3bn, broadly unchanged from a year earlier, with new business wins including contracts with NHS Property Services and Cornerstone Telecommunications Infrastructure Limited (CTIL).
Its property management arm, which predominantly serves the social housing sector, posted an operating loss of £4.5m, compared with a profit of £16.8m a year earlier.
Contract wins in the year included a place on a four-year framework with housing association A2Dominion.
The group also completed its exit from the domiciliary healthcare market with a £132.3m loss.
The firm added that it expected to return to “modest growth in underlying profit” in the coming financial year.
“We are investing in a major transformation programme to improve our customer proposition, increase operational efficiency, streamline processes, leverage technology and develop and retain our people,” the company said.
“With our new investment-led strategy, we believe that there is a significant opportunity to transform Mitie into a more focused, higher growth / higher margin business, which, in time, will result in materially increased shareholder value.”
Mitie has seen a significant number of management changes over the past 12 months, after both chief executive Ruby McGregor-Smith and financial director Suzanne Baxter left the business after 15 and 10 years respectively.