Mitie profit slips a third ahead of Interserve merger
Outsourcer Mitie said that profit had fallen over a third in the first half of the year due to a loss of revenue from high margin contracts impacted by coronavirus.
Profit at the London-listed firm slipped 35 per cent from £33m to £21.5m, with revenue also declining 9.8 per cent to £972m.
As a result, the company has elected to scrap its interim dividend, having also pulled last year’s final payout.
It said that it had taken a hit in its aviation and financial & professional services contracts, with customers clamping down on any and all discretionary spending.
In the six month period, Mitie said that it had won £500m in new contracts, including with household names Marks & Spencer, Morrisons, and Royal London.
It is currently awaiting the completion of its deal to buy rival outsourcer Interserve’s facilities management wing, which is expected to close on 30 November.
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Earlier this month Mitie said that it had reduced the price it would pay for the business by £80m, to £191m.
The deal will make Mitie the country’s largest facilities management operation, with headcount around 80,000.
Chief executive Phil Bentley said: “Our financial performance in the first six months of the year proved more resilient than expected with a much improved second quarter.
“Although Covid-19 continues to challenge us all, I am incredibly proud of how our business has responded.
“With Covid-19 changing the way we work our industry-leading technology of remote monitoring, risk analytics, and deep cleaning has created opportunities to win some important new customers.”,