Mitie Group has issued another profit warning following a two-day board meeting.
In a trading update to the City today the board said it is taking a “more conservative judgement on contractual positions” which will result in a further £14m in one-off charges this year.
Contracts in the Property Management and Technical FM divisions have also been hit by “client deferrals and investment plan delays.”
The statement added: “As a consequence, we now expect underlying operating profit for the full year to 31 March 2017 to be in the range of £60m to £70m.
“Despite these lower forecast earnings, we expect to continue operating within our contractual banking covenants.”
Mitie also announced that Group Finance Director Suzanne Baxter is stepping down next month.
She will be replaced by Sandip Mahajan who will take on the role of Chief Financial Officer.
Mahajan was previously Group Director of Finance at Balfour Beatty.
He left the contractor in October following 11 years at the firm after joining from Ernst & Young.
Phil Bentley, CEO of Mitie, said: “I would like to offer my thanks to Suzanne for her support during the transition, and I wish her the best for the future.
“I am delighted that Sandip is joining Mitie.
“He brings a wealth of experience in financing and in improving the operational performance of long term contracts. I am sure he will make a significant contribution to Mitie and I look forward to working with him.”
from Construction Enquirer http://www.constructionenquirer.com/2017/01/18/ex-balfour-finance-chief-to-join-mitie-after-another-profit-warning/
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