Mitie exits design and build market

Grant Prior 8 years ago
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Mitie is taking a £25.4m hit as it pulls out of design and build work in the energy sector.

The news comes as the firm nears the exit door in the M&E market where it racked-up a £13.6m trading loss last year.

Mitie confirmed in its preliminary results for the year to March 31 2014 this morning that it will exit the design and build part of its energy business to concentrate fully on its core FM markets.

The firm said: “Our strategy is to focus on markets where we see potential for growth and which meet our margin targets.

“In this financial year, we expect to complete our exit from our loss-making mechanical and electrical engineering construction business, which is exposed to the construction markets.

“We are also moving out of the design and build element of asset management.

“Whilst we have incurred significant losses in doing so, the group is now better positioned to deliver our growth ambitions.”

The £25.4m one-off costs of withdrawing from design and build follow the £22.1m charge set aside last year to exit M&E.

Results for the whole group show pre-tax profit up 4.3% to £113.3m with revenue up 8.2% to £2,142m.

Chief Executive Ruby McGregor-Smith said: “We are very well-positioned as one of the UK’s leading integrated facilities management providers and we have also invested in higher margin markets which will support our growth aspirations.

“We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access bundled and integrated services.

“We are confident that we will continue to build on our track record of delivering sustainable, profitable growth.”

 

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