Danny McCance 13 Jun 2017 12:52pm

Mitie announces cost cutting plan after £49m losses

The facilities management company released their accounts for 2017 yesterday, revealing a £49.2m loss for the year ending 31 March 2017

This is down 139% from the previous year, when the company recorded a profit of £107.9m.

The company has launched a £45m cost efficiency programme, titled Project Helix.

So far this year Mitie has cut 160 jobs, with more expected, from its 53,000 strong team.

The company announced a £40m to £50m write-down in May, when an accounting review conducted by KPMG found a number of material errors.

These errors included expenses booked relating to the wrong period, irrecoverable debtor balances and healthcare and goodwill.

In their full-year accounts review, the company announced to investors that after recalculation this write-off had risen to £60m, in addition to the £14m the company announced in January.

“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,” said Phil Bentley, chief executive of Mitie.

“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,” he added.

Mitie did announce a sales pipeline of £8.7m, up 10.1% from last year.