Mitie profit warning investigated by the Financial Conduct Authority

Courtney Goldsmith
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Mitie is under investigation by the FCA
Mitie is under investigation by the FCA (Source: Mitie)

Outsourcing giant Mitie is under investigation by the Financial Conduct Authority (FCA) over a profit warning last year.

The financial watchdog is looking into the timeliness of a profit warning announced by Mitie on 19 September 2016 and the preparation and content of the firm's financial results for the period ending 31 March 2016.

"The company is fully cooperating with the FCA but does not intend to update the market until completion of the investigation," Mitie said.

Mitie's shares plummeted in September when it warned that profits would be hurt by lower UK growth, rising labour cost and public spending cuts.

This news follows a probe by the Financial Reporting Council (FRC) into the 2015 and 2016 year-end audits of the FTSE 250 firm, which was announced last month.

The investigation was into big four accounting firm Deloitte, which undertook the audits, and is set to examine whether there have been any “breaches of relevant requirements”.

The troubled outsourcer issued three profit warnings last year due to uncertainty around Britain's decision to leave the European Union.

It also recently featured on Canaccord Genuity Wealth Management's list of the UK's most shorted stocks.

Read more: Watchdog launches probe into Mitie's accounts by Deloitte

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