Outsourcing firm Mitie swings to loss after 'challenging year'

Outsourcing group Mitie has reported a full-year loss and lower revenues as a result of one-off accounting adjustments.

The company posted a loss before tax of £58.2m for the year ended 31 March, in contrast to a £91.9m profit in the previous 12 months.

Revenue eased slightly to £2.13bn.

The report comes after Mitie issued three profit warnings over the past year, citing the UK's decision to leave the European Union and "challenging market conditions".

In March, the company sold its home healthcare business, Enara, for just £2 to private equity firm Apposite Capital.

"This has been a challenging year for Mitie. We have reported a loss as a result of the one-off accounting adjustments arising from the accounting review," Mitie chief executive Phil Bentley said.

"We are now focused on the future of the business and I am encouraged that our order book has held up and our pipeline is growing."

Bentley added that the company would implement a "major cost reduction programme" to return to profitability.

Mitie's board of directors did not recommend a final dividend payment to shareholders, leaving the full-year dividend at 4p per share.

"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," the firm said.

"We expect a return to modest growth in underlying profits this year."