Mitie Group swings to H1 pretax loss

Mitie Group has swung to an H1 pretax loss of £100.4m, from a profit of £45.1m. Dividend was 4p a share, from 5.4p.

Revenue came in at £1.09bn, from £1.1bn.

CEO Ruby McGregor-Smith commented:

"The first half of this year has been difficult but we are not alone in facing significant macroeconomic challenges.

"The steps we have taken to counter these impacts include the restructuring of both frontline and support functions across FM and the decision to withdraw from the domiciliary care market.

"Second-half performance is expected to improve with our new operating model as we adapt to market conditions.

"As I step down as CEO I would like to thank everyone at Mitie who has helped make this such an extraordinary place to work.

"Thank you also to our clients for their support over the past decade. Mitie is a great business and I am confident that it will move from strength to strength in the future."

OUTLOOK

- Improved performance is expected in the second half of the year due to enhanced revenue visibility from new contract awards and retentions, momentum in levels of project work and the anticipated incremental H2 benefits from restructuring programmes of £10m compared to H1

- Despite this progress, due to ongoing market uncertainties, underlying earnings for FY17 are expected to be below management's previous expectations

- The quality of the business, our people, our long-term client relationships and having no material rebids until 2019, gives us confidence for the performance of Mitie in the years ahead.