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| Version 2 | Version 3 |
|---|---|
| Mitie investigated by Financial Conduct Authority | Mitie investigated by Financial Conduct Authority |
| (about 4 hours later) | |
| UK outsourcing group Mitie has said it is under investigation by the Financial Conduct Authority (FCA) over the timing and content of a profit warning. | UK outsourcing group Mitie has said it is under investigation by the Financial Conduct Authority (FCA) over the timing and content of a profit warning. |
| Mitie said it was told by the FCA last Friday and was "fully co-operating" with the financial regulator. | Mitie said it was told by the FCA last Friday and was "fully co-operating" with the financial regulator. |
| The profit warning sent shares in Mitie tumbling by a quarter when it was released in September last year. | The profit warning sent shares in Mitie tumbling by a quarter when it was released in September last year. |
| The firm said at the time that Brexit uncertainty and other "economic pressures" would lead to lower profits. | The firm said at the time that Brexit uncertainty and other "economic pressures" would lead to lower profits. |
| Mitie is one of the UK's largest outsourcing groups, offering services to clients such as the NHS and London City Airport. | Mitie is one of the UK's largest outsourcing groups, offering services to clients such as the NHS and London City Airport. |
| The provider of pest control, cleaning, healthcare and security services, which employs more than 50,000 people, issued three profit warnings last year. | The provider of pest control, cleaning, healthcare and security services, which employs more than 50,000 people, issued three profit warnings last year. |
| It parted with longstanding chief executive Ruby McGregor-Smith in October. | It parted with longstanding chief executive Ruby McGregor-Smith in October. |
| Company accounts | Company accounts |
| Under new boss Phil Bentley, it carried out an accounting review which led to it reporting a £43m loss for the year to the end of March 2017 and re-stating its profits for the previous year. | Under new boss Phil Bentley, it carried out an accounting review which led to it reporting a £43m loss for the year to the end of March 2017 and re-stating its profits for the previous year. |
| The firm said the FCA had "commenced an investigation in connection with the timeliness" of the September profit warning. | The firm said the FCA had "commenced an investigation in connection with the timeliness" of the September profit warning. |
| The regulator is also looking into "the manner of preparation and content of the company's financial information, position and results for the period ending 31 March 2016", Mitie said. | The regulator is also looking into "the manner of preparation and content of the company's financial information, position and results for the period ending 31 March 2016", Mitie said. |
| The firm added that it did not intend to update investors further until the investigation was completed. | The firm added that it did not intend to update investors further until the investigation was completed. |
| It is the second investigation into Mitie's accounts in the space of a month. | It is the second investigation into Mitie's accounts in the space of a month. |
| The UK's accountancy watchdog, the Financial Reporting Council, opened a probe at the end of July into Deloitte's auditing of Mitie's accounts for the years ending 31 March 2015 and 2016. | The UK's accountancy watchdog, the Financial Reporting Council, opened a probe at the end of July into Deloitte's auditing of Mitie's accounts for the years ending 31 March 2015 and 2016. |
| Shares in Mitie initially fell about 1% on Tuesday but erased those losses in afternoon trading. | |
| Analysis | Analysis |
| By Dominic O'Connell, Today business presenter | By Dominic O'Connell, Today business presenter |
| The FCA investigation is a blow to the reputation of one of the government's favourite business people - Ruby McGregor-Smith, now Baroness McGregor-Smith. | The FCA investigation is a blow to the reputation of one of the government's favourite business people - Ruby McGregor-Smith, now Baroness McGregor-Smith. |
| She was chief executive at Mitie for nine years, making it a stock market darling and one of Britain's largest employers. | She was chief executive at Mitie for nine years, making it a stock market darling and one of Britain's largest employers. |
| The profit warning the financial watchdog is looking into happened on her watch - it came in September last year, and the company announced her departure a month later. | The profit warning the financial watchdog is looking into happened on her watch - it came in September last year, and the company announced her departure a month later. |
| She was made a Conservative life peer a year earlier, and has completed an influential official review into the obstacles faced by black and ethnic minority executive talent. | She was made a Conservative life peer a year earlier, and has completed an influential official review into the obstacles faced by black and ethnic minority executive talent. |