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Mitie under investigation by FCA over profit warning

Mitie has confirmed that it is being investigated by the Financial Conduct Authority in relation to the firm’s profit warning last year.

The outsourcing giant said it was “fully co-operating” with the FCA investigation, which is focusing on the timing and content of a profit warning issued in September 2016.

In June Mitie posted a £42.9m loss and announced plans to cut around 3,000 staff from the business. Revenue for the year to 31 March 2017 dipped to £2.13bn, down from £2.15bn the year earlier.

The £42.9m loss represented a significant change in fortunes for the firm, which posted a £112.5m profit in its previous annual results.

In September 2016 the firm announced that “significant economic pressures” had hit profits and revenue, and warned that results would be “significantly lower” after a slowdown in property maintenance and healthcare work.

The following month saw Mitie part ways with its long-serving chief executive Ruby McGregor-Smith, who announced her departure after nearly a decade at the company.

In a statement to the London Stock Exchange this morning, Mitie said: “On 25 August 2017, the Financial Conduct Authority informed the company that the FCA has commenced an investigation in connection with the timeliness of a profit warning announced by the company on 19 September 2016 and the manner of preparation and content of the company’s financial information, position and results for the period ending 31 March 2016.

“The company is fully co-operating with the FCA but does not intend to update the market until completion of the investigation.”

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