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Revenues rise but profits drop at Mitie

In its half-yearly financial report for the six months ended 30 September 2017, outsourcing firm Mitie has reported a 3.9 per cent growth in adjusted revenue from £923.7 million to £959.7 million.

Adjusted operating profit also rose by 5. 8 per cent from £30.8 million to £32.6 million, however despite these increases the Group has seen a 38.1 per cent drop in reported operating profit from £23.9 million to £14.8 million.

Its order book at the end of September 2017 stood at 5.93 billion pounds, a 1 per cent increase from 5.87 billion during the same period in 2016.

The Group is currently six months into its three-year transformation programme ‘Project Helix’ which aims to see a reduction in Mitie’s operating costs on an annualised basis of £40 million by FY2020.

As part of the wider strategic review of the Group’s operations, Mitie has also been examining the sale of its Property Management business, for which indicative offers have been received.

Phil Bentley, Chief Executive, Mitie Group, commented: “This has been a period of transformation and investment for Mitie. We have had a solid six months with a modest uptick in revenue. We have continued to build foundations, take out costs, simplify systems and processes, invest in our capabilities and put the customer at the heart of our organisation.

“We have had a number of good recent wins, we have attracted some high-quality talent to the business, our Connected Workspace proposition is gaining traction and we are already seeing the benefits of our HR and IT change programmes. We have much more to do, but we are very much on track.”

In August the Financial Conduct Authority launched an investigation into the timing of a profit warning issued by Mitie in September of last year and the preparation and content of its company accounts for financial year ending 31 March 2016, which the accounting watchdog has now concluded.

 

 

 

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