Outsourcing services firm Mitie plunged into the red in its full-year results today, after an external accounting review resulted in writedowns of almost £90m.
The company, which provides staffing and management solutions, recorded an operating loss of £42.9m for the year to 31 March 2017, down from a profit of £107.6m the year before.
Revenue was down just one per cent to £2.1bn.
Mitie also completed its exit from the home healthcare market, selling its healthcare business for just £2 and making a loss of £132.3m from discontinued operations.
Why it's interesting
A review of the company's accounting policies by KPMG was expected to result in writedowns of £14m at the start of last year, but the estimate rapidly rose and the final number was £88m.
But the markets were reassured by the firm's sanguine approach, as Mitie shares enjoyed their best day since 2008, hitting a high of 277.9p earlier this morning.
What Mitie said
Chief executive Phil Bentley, who replaced Ruby McGregor-Smith in December, said: "We are now focused on the future of the business and I am encouraged that our Order Book has held up and our Pipeline is growing."