Mitie issues profit warning as it reports £100m loss
Outsourcing firm Mitie has issued another profit warning as it faces fresh hits from economic uncertainty and rising staff costs.
The company's half-year results revealed a £100m loss, compared with a £45m profit a year earlier, which it blamed on "changing market conditions".
It has put its healthcare unit "under strategic review" and is withdrawing from the home healthcare market.
Shares in Mitie plunged 13% in early trade.
The £100m loss was mainly due to Mitie writing down the value of its home healthcare business.
The company said the board had changed its long-term view of the market but added that its healthcare businesses "would continue to fulfil all obligations".
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."
But the company warned: "Due to ongoing market uncertainties, underlying earnings for [the full year] are expected to be below management's previous expectations."
It said that changing market conditions had led to "rising labour costs and economic uncertainty".
In more positive news, Mitie, which holds big contracts with the Ministry of Justice and Home Office, said it had won £170m-worth of new contracts with companies such as Manchester Airports Group, Network Rail, and the Scottish Police Authority.
After a decade as chief executive, Ms McGregor-Smith steps down next month to be replaced by former British Gas boss Phil Bentley.