Outsourcing giant under FCA investigation over profit warning

Outsourcing group Mitie, which has bases across the East Midlands, has revealed it is under investigation by the Financial Conduct Authority (FCA) over a profit warning it made last year.

Mitie announced the news to the London Stock Exchange yesterday afternoon (29 August)

A statement on its website reads: “On 25 August 2017, the Financial Conduct Authority informed the company that the FCA has commenced an investigation in connection with the timeliness of a profit warning announced by the company on 19 September 2016 and the manner of preparation and content of the Company’s financial information, position and results for the period ending 31 March 2016. The company is fully cooperating with the FCA but does not intend to update the market until completion of the investigation.”

Earlier this year, Mitie said that an external review of its accounting policies by KPMG would mean a hit to its bottom line of between £40-50m. However, Mitie’s full-year results, published in June, said that the write-down had spiralled to £88.3m as it reported a pre-tax loss of £58.2m – compared to a profit of £91.9m the previous year.

Mitie is currently looking for a new auditor after 30% of its shareholders voted against Deloitte staying in position at its AGM last month.

The firm has offices in Nottingham, Lutterworth and Market Deeping.