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.
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.”,