Mitie Group share price drops as it reveals another FRC investigation

Caitlin Morrison
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Mitie Group has reported revenues are up but profits are down (Source: Mitie)

Mitie Group has revealed the accounting watchdog has opened another investigation into the group's financial statements, as it unveils its first half results.

The figures

Revenue was up four per cent in the first half of 2017, from £922.6m to £959.7m.

Operating profit dropped 38.1 per cent to £14.8m from £23.9m.

Basic earnings per share fell 63.6 per cent from 3.3p to 1.2p.

The company will pay a dividend which is one third of last year's, at 1.33p.

Why it's interesting

Mitie is currently attempting a total transformation, after a difficult period marked by job cuts, profit warnings and regulatory investigations.

Today, the group revealed the Financial Reporting Council (FRC) has opened an investigation under the accountancy scheme focusing on the preparation and approval of Mitie's financial statements for the year to 31 March 2016.

In July, the FRC launched a probe into the 2015 and 2016 year-end audits of the FTSE 250-listed outsourcing business.

Shares dropped by more than one per cent at the open.

What Mitie said

"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," said chief executive Phil Bentley.

"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."

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