A 'Mitie' investigation: Outsourcing company faces financial probe

London-listed outsourcing group Mitie is under investigation by the Financial Conduct Authority (FCA) over the timing and content of a profit warning it issued in September 2016, the company confirmed on Tuesday (29 August).

The FCA probe follows an investigation by the Financial Reporting Council (FRC) on Mitie's financial statements for the years ending 31 March 2015 and 2016, audited by Deloitte.

In a statement, the company – one of the UK's largest outsourcing firms – said it was informed about the FCA investigation on Friday, and was "fully co-operating" with the regulator.

"The manner of preparation and content of the company's financial information, position and results for the period ending 31 March 2016" was also being looked into.

The profit warning in question saw Mitie blame Brexit uncertainty and other "economic pressures" for its poor performance. The company's longstanding chief executive Ruby McGregor-Smith departed a month later in October 2016.

Phil Bentley, who succeeded McGregor-Smith, then carried out an accounting review which led to Mitie reporting a £43m loss for the year to the end of March 2017, and the re-stating of profits for the previous financial year.

At 12:47pm BST, Mitie's shares were down 0.16% or 0.42p at 265.50p, having fallen by as much as 1% at one point when details of the FCA investigation first emerged.