Facilities, property and energy management firm, Mitie has reported results for the six months ended 30 September 2016, showing operating profit before other items of £35.4m (HY16: £58.1m).
The board has decided to withdraw from the domiciliary healthcare market and has placed the business under strategic review.
The firm saw losses before tax of £100.4m (HY16:£45.1m), which was mainly due to Mitie writing down the value of its home healthcare business.
Improved performance is expected in the second half of the year due to enhanced revenue visibility from new contract awards and retentions, momentum in levels of project work and the anticipated incremental H2 benefits from restructuring programmes of £10m compared to H1.
As previously announced as a part of long-term board succession plans, Ruby McGregor-Smith will step down as chief executive on December 12, 2016 after almost ten years in the role and will be replaced by Phil Bentley.
Ruby McGregor-Smith CBE, Chief Executive of Mitie, commented, 'The first half of this year has been difficult but we are not alone in facing significant macroeconomic challenges.
'The steps we have taken to counter these impacts include the restructuring of both frontline and support functions across FM and the decision to withdraw from the domiciliary care market. Second half performance is expected to improve with our new operating model as we adapt to market conditions.
'As I step down as CEO I would like to thank everyone at Mitie who has helped make this such an extraordinary place to work. Thank you also to our clients for their support over the past decade. Mitie is a great business and I am confident that it will move from strength to strength in the future.”
Roger Matthews, Chairman of Mitie, said, “I would like to thank Ruby for the significant contribution that she has made to Mitie over her 14 years on the board, the last 10 years as CEO. Under her strong and passionate leadership our FM business has been transformed with the ability to provide a broad range of services to our blue-chip client base. I wish her every success for the future.
'I am delighted that Phil Bentley has joined Mitie as our future CEO. Phil has demonstrated his leadership skills and strong customer focus at both Cable & Wireless and British Gas and he has an excellent track record of delivering shareholder value.”