Outsourcer Mitie books £58m loss after accounting issues in 'challenging' year
Struggling outsourcer Mitie swung to a loss last year after the firm took a hit from accounting issues.
The group, which has been under pressure amid a string of recent profit warnings, reported a £58.2 million pre-tax loss in the year to March 31, compared with a £91.9 million profit in 2016.
Mitie was stung by £88.3 million of one-off costs after a review of its books by KPMG showed practices that were "less conservative, albeit still justifiable, than others in the market".
Chief executive Phil Bentley also said the firm will embark on a "major cost reduction programme" following a strategic review.
Mitie is aiming to slash £45 million in costs as part of a transformation programme.
Mr Bentley said: "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. 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.
"Following a full strategic review we are investing in technology in the workspace to meet our customers' evolving needs and we are embarking on a major cost reduction programme."
Revenue came in broadly flat at £2.1 billion.
Mitie has overhauled its management as part of recovery efforts, with Mr Bentley appointed in December and Sandip Mahajan hired as chief financial officer on February 10.
The firm also recruited a new chairman, Derek Mapp, last month.
Mr Mapp takes over from Roger Matthews, who will relinquish control at the annual general meeting (AGM) on July 26 after 11 years with the group.