The Biggest & Best Portal to the Professional Property, Workplace and Built Environment Community

Saturday, 24 February

A Connected Disconnect?

Mitie has made its preliminary announcement of results for the year ended 31 March 2017 under the banner 'Moving Beyond FM to the Connected Workspace'. Some employees will be feeling more than a tad disconnected as they leave the firm under a £45 million cost savings plan.

Phil Bentley, Chief Executive of Mitie, said on June 12: “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. With the support of our 53,000 colleagues, we will take Mitie beyond FM…to the connected workspace.”

 

Project Helix

Bentley did not reveal how many of his 'colleagues' will lose their jobs but the implications of such a huge cost-cutting exercise clearly means not everyone can be absorbed in to the new business model. Under the title Project Helix, the exercise is underway with a new management team replacing the old management team and the Board euphemistically described as 'refreshed'.

 

FM growth

Despite the current desire to move from FM to a Connected Workspace, Mitie's core business actually grew 3%.

Overall revenue is expected to rise to £2.14 billion against the 2016  adjusted accounts of £2.13 billion. The company has made huge losses over 2016-2017 with one-off payments causing considerable dame. Adjusted operating profit, which provides a better like-for-like performance comparison, fell by £13.2 million to £82 million (FY16: £95.2m) due to lower gross margin (£10.7m) and increased overheads (£2.5m).

 The exit from the domiciliary healthcare market has been completed with a £132.3m loss from the discontinued operations

The Board is not recommending a final dividend. Total dividend for the year is 4.0p (FY16: 12.1p).

Picture: Who will be heading out the door as Mitie transforms its business to cut £45 million of costs

Article written by Brian Shillibeer

Share



Related Articles

Christmas FM Digest

On The Twelfth Day Of Christmas On Twelfth Night 2018 or there abouts, Croydon residents will get a free doorstep Christmas tree recycling collection under a new deal...

 Read Full Article
Sellafield Bunkers Down For Mitie Workers' Nuclear Strikes

GMB members employed as ancillary staff by contractor Mitie at Sellafield are to strike on Wednesday, November 29 over below inflation wage increases - with the Union...

 Read Full Article
Innovation Boosts FM Market in 2017

A new report on the UK facilities management market has found a softening of growth in outsourcing demand as Brexit jitters continue, though forecasts remain above GDP...

 Read Full Article
Ring-a-ring O' Ringrose's, A-tishoo! A-tishoo! Shares Fall Down

“Despite the increased political and macro-economic uncertainty following the UK’s EU referendum and recent general election, our outlook for the current year...

 Read Full Article
Lights, Camera Action - It's FM Digest time

Sodexo wins 10-year deal with Farnborough International Farnborough International Exhibition & Conference Centre has given Sodexo a 10-year contract, £30...

 Read Full Article
British FM Expertise Fuels M&A Activity

The UK building and facilities services sector has grown by £15 billion since 2011, with a total UK market value of £125 billion in 2016, according to the...

 Read Full Article
Old Dutch Spawns New Masters - Imtech UK and Ireland Results Show Resolve

Imtech UK and Ireland has released its first set of figures since the Group emerged from the buyout from its failed Dutch parent company. The figures cover the period...

 Read Full Article
How Mitie Have Fallen

Mitie have announced half-yearly results for the six months ended 30 September 2016 which show big losses and profits warnings. This has slammed the company's shares...

 Read Full Article
Mitie in the Mire as Profits Warning is Issued

The week, ending Friday September 23, Mitie Group plc issued a trading update statement and in so doing has caused its own shares and that of some competitors, to plunge...

 Read Full Article
Imtech Survives on Endless Credit

Imtech UK has announced (Tues 01 Sept) that it has concluded a deal to refinance its business through an investment from private equity firm Endless LLP. The...

 Read Full Article