Mitie shares fall 4% following loss of £170m Edinburgh council contract
Shares in property services giant Mitie have fallen 4% since councillors in Edinburgh voted yesterday afternoon to keep its property management in-house.
Mitie had been announced as preferred bidder for the £170m contract earlier this month, which was designed to outsource integrated facilities management services to the council for the next seven years.
Under the deal, Mitie was to have to established a subsidiary company, Vital Edinburgh, to carry out the work, supported by engineer Atkins and estate agent Lambert Smith Hampton. Atkins’ share price also dipped on the news.
In a statement Mitie said that the pipeline of outsourcing opportunities for the delivery of local public services remains “strong across the UK” and that the firm will continue to invest in the area.
The contract had been due to deliver the council’s Integrated Facilities Management and Corporate and Transactional workstreams.
Sue Bruce, chief executive, of Edinburgh City Council said: “We now have clear council decisions on both workstreams and I look forward to working with the staff and trades unions’ representatives to deliver the improvements to which we have all now committed.”