Latest year-end results reveal that following Mitie’s decision to pull out of M&E contracting in 2012, the firm has racked up another £16m loss completing the final exit. The year before it suffered a £13.6m trading loss in the M&E business.

The firm also took a heavy loss from an abandoned venture into building a wood burning power station in Plymouth by its assets management business.

In a statement Mitie said: “We have now completed our exit from the legacy, loss-making mechanical and electrical engineering construction businesses as well as our Asset Management business.

“Both were characterised by design and build risk, high overhead costs and cyclicality.

“The M&E construction business closed before the end of the financial year, with exceptional losses of £15.9m for the period.

“In our Asset Management business, all operational and financial risk on the remaining design and build contracts has been assessed and a charge of £45.7m taken.”

The Asset Management business, which is now part of our Energy Solutions division, suffered from three key remaining contracts.

Some £27m of the sum comes from the O-Gen Plymtrek joint venture, which has now abandoned much-delayed plans to build the wood-burning energy from waste scheme.

Ruby McGregor-Smith CBE, chief executive of Mitie Group, said: “In 2012, we made the decision to reduce our exposure to cyclical, high risk, construction-related markets. This was not an easy decision, and a very difficult course of action for Mitie, but it was undoubtedly the right thing to do for our long-term future.

“We have repositioned the business and lowered our risk profile. Our facilities management business accounts for around 85% of group revenue and is a UK market leader.

“We see considerable opportunities across our markets, to provide clients with higher quality, innovative services that save them money.”

Group profits edged ahead to £114m on turnover up 6% at £2.3bn.