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Comments Off on Mitie Cuts Staff After £43m Loss

Mitie Cuts Staff After £43m Loss

Posted by Admin | June 12, 2017 | Telecoms

Facilities management specialist Mitie has cut over 3,000 staff after posting an operating loss of £42.9m in its latest full-year results.

The company also saw revenue dip to £2.13bn for the year to 31 March 2017, down from £2.15bn a year earlier, while the £42.9m operating loss represents a significant decline after a £107.6m pre-tax profit in its previous annual results.

Mitie is now half way through a £45m cost efficiency programme after what it described as “a challenging year,” with the firm also cutting staff numbers from around 59,300 last year to 56,300 this year.

The company had already announced plans in May this year to cut 160 jobs ahead of its full year results.

In its engineering services business, Mitie saw revenue dip slightly to £797.4m, down from £800.3m a year earlier, while operating profit slipped to just £0.2m, down from £53.7m.

However, the division reported an order book of £3.3bn, broadly unchanged from a year earlier, with new business wins including contracts with NHS Property Services and Cornerstone Telecommunications Infrastructure Limited (CTIL).

Its property management arm, which predominantely serves the social housing sector, posted an operating loss of £4.5m, compared with a profit of £16.8m a year earlier.

Contract wins in the year included a place on a four-year framework with housing association A2Dominion.

The group also completed its exit from the domiciliary healthcare market with a £132.3m loss.

The firm added it expected to return to “modest growth in underlying profits” in the coming financial year.

”We are investing in a major transformation programme to improve our customer proposition, increase operational efficiency, streamline processes, leverage technology and develop and retain our people,” said the company.

”With our new investment-led strategy, we believe that there is a significant opportunity to transform Mitie into a more focused, higher growth/higher margin business which, in time, will result in materially increased shareholder value.”

Mitie has seen a significant number of management changes over the past 12 months, after both chief executive Ruby McGregor-Smith and financial director Suzanne Baxter left the business after 15 and 10 years respectively.

They have been replaced by Phil Spencer and former Balfour Beatty FD Sandip Mahajan respectively, while Derek Mapp has joined the business as chairman from publishing and events firm Informa.

Source: constructionnews

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