Mitie share price jumps after it posts a loss as accounting charges tot up to £88m

 
Alys Key
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Chief executive Phil Bentley took over at the end of last year (Source: Mitie)

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 figures

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.

The company has since gone through a raft of changes including new appointments to its board including a new chairman and cutting 160 jobs.

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."

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