Contractor announces 拢58.3m of exceptional costs, including a 拢29m charge on one waste-to-energy project
Mitie has posted a 拢1.3m pre-tax loss for the six months to 30 September 2014 after incurring 拢58.3m of exceptional costs.
The one-off costs include 拢45.7m of exceptional charges on 鈥渁 small number鈥� of design and build contracts in its asset management business, including a 拢29m charge on a single waste-to-energy project.
The firm also racked up a 拢6.9m trading loss in its M&E business, which Mitie is discontinuing and will cease trading within the full financial year, and 拢5.7m of costs from integrating acquisitions and amortisation costs.
Mitie said that without these exceptional items the firm would have made a 拢57m pre-tax profit for the first half of the 2014-15 financial year.
The firm reported revenue remained flat at 拢1.1bn.
At the time of its full-year results in May, Mitie announced a 拢25.4m exceptional charge on design and build projects, also in its asset management business, and said it would draw back from design and build contracts in this area.
Mitie has subsequently absorbed its asset management business into its energy solutions business and said today鈥檚 charge on design and build contracts in asset management would 鈥渃over all balance sheet exposures and all material expected future costs鈥�.
Mitie also confirmed it will complete its exit of the M&E sector this financial year, with full-year losses expected to 鈥渞ange between 拢11m and 拢15m for the full year鈥�. Last financial year the division reported a 拢13.6m loss.
Elsewhere, the firm鈥檚 facilities management and healthcare divisions reported solid growth, while revenue at its property management division held firm.
Mitie鈥檚 order book stood at 拢8.5bn, down slightly from 拢8.7bn in March this year.
Ruby McGregor-Smith (pictured), chief executive of Mitie, said the firm had 鈥渄elivered a strong performance鈥� in its facilities management business during the first half of the year and that she 鈥渆xpected to gain further positive momentum through the rest of the year鈥�.
She added: 鈥淲e have significantly de-risked our group by finalising the exit from our loss-making businesses. We are focused on investing in and maximising the long-term growth potential of our facilities management, property management and healthcare businesses.
鈥淥ur order book and sales pipeline are substantial. We are in a good position to deliver growth and look ahead with confidence.鈥�
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