Economic uncertainty hits revenue at outsourcing giant
Outsourcing giant Mitie has warned investors its full-year revenue will be below market expectations due to economic uncertainty causing some work to be cancelled or delayed.
Despite the revenue hit, Mitie said its full-year profit will still fall within the range expected by analysts, as it has cut costs to maintain its profit margins.
Changes in spending patterns at local authorities and housing associations led to slower growth than expected in its property management division in the second half.
Mitie said the homecare market, which covers services including providing care for older people or people with disabilities, also remains “challenging”.
Mitie will report full-year results for the year to March 2016 in May. The firm said it expects only “modest growth” in its next financial year due to continuing economic uncertainty.