This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2017/aug/29/mitie-fca-results-profit-warning-deloitte
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Mitie investigated by FCA over results and profit warning | Mitie investigated by FCA over results and profit warning |
| (5 months later) | |
| Watchdog’s probe comes after news last month it has launched probe into outsourcing firm’s auditor Deloitte | |
| Reuters | |
| Wed 30 Aug 2017 06.08 BST | |
| First published on Tue 29 Aug 2017 18.56 BST | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| View more sharing options | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Close | |
| The City regulator has launched an investigation into Mitie over its annual results and the timing of a September 2016 profit warning, adding to problems at the outsourcing company as it tries to revive its fortunes. | The City regulator has launched an investigation into Mitie over its annual results and the timing of a September 2016 profit warning, adding to problems at the outsourcing company as it tries to revive its fortunes. |
| The provider of pest control, cleaning and security services said on Tuesday it was informed of the probe by the Financial Conduct Authority on Friday and was “fully cooperating”. | The provider of pest control, cleaning and security services said on Tuesday it was informed of the probe by the Financial Conduct Authority on Friday and was “fully cooperating”. |
| Outsourcing companies such as Mitie, Capita and Carillion have been hit over the past year by rising labour costs and unplanned changes on contracts that were taken on during the financial downturn, often with paper-thin margins. | Outsourcing companies such as Mitie, Capita and Carillion have been hit over the past year by rising labour costs and unplanned changes on contracts that were taken on during the financial downturn, often with paper-thin margins. |
| A failure by some clients to renew or commission new contracts has compounded the problem, leading Mitie to issue two more profit warnings in quick succession to its first in September 2016. | A failure by some clients to renew or commission new contracts has compounded the problem, leading Mitie to issue two more profit warnings in quick succession to its first in September 2016. |
| Last month, Britain’s accounting watchdog said it was investigating Deloitte over its auditing of Mitie’s books. | Last month, Britain’s accounting watchdog said it was investigating Deloitte over its auditing of Mitie’s books. |
| Companies are required to announce promptly material changes in their financial prospects to investors, and Britain’s financial watchdog has previously fined oil services group Lamprell and JJB Sports for failing to make timely disclosures. | Companies are required to announce promptly material changes in their financial prospects to investors, and Britain’s financial watchdog has previously fined oil services group Lamprell and JJB Sports for failing to make timely disclosures. |
| Mitie is in the midst of a turnaround drive under new chief executive Phil Bentley, who took over in December. It has since restated its historic accounts, announced it would appoint a new auditor and sold a loss-making unit. | Mitie is in the midst of a turnaround drive under new chief executive Phil Bentley, who took over in December. It has since restated its historic accounts, announced it would appoint a new auditor and sold a loss-making unit. |
| The company expects to return to modest growth in underlying profit this year, but could face fines and investigations into employees if it is found by the FCA to have breached rules. | The company expects to return to modest growth in underlying profit this year, but could face fines and investigations into employees if it is found by the FCA to have breached rules. |
| Mitie shares, which almost halved in value last year, closed down 0.4% at 267p. | Mitie shares, which almost halved in value last year, closed down 0.4% at 267p. |
| Mitie | |
| Services sector | |
| news | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Reuse this content |