24th Mar 2016 07:43
LONDON (Alliance News) - Outsourcer Mitie Group PLC on Thursday said profit for the full year will meet market expectations, but revenue will fall short following a softer second half.
Mitie said it has seen some revenue shortfalls emerge in the second half of the financial year to the end of March, meaning revenue will miss market expectations. The FTSE 250 company has been cutting costs to preserve margins, which will mean profit will be "within the range" of current market expectations, it said.
Mitie said its Facilities Management arm has performed well, securing new contracts recently and mobilising a number in the final quarter of the financial year, but its Property Management unit, after a good first half, has seen a second half slowdown.
The Property Management business has been hit by a shift in spending patterns by the company's local authority and housing association clients, ahead of the statutory 1% reduction in social housing rents which will come into force in the UK on April 1.
Still, the group said the outlook for the social housing market remains robust and said its Healthcare business has continued to make progress, albeit amid a still challenging homecare market.
Mitie also said it does not expect the implementation of the National Living Wage in the UK, an effective minimum wage for over-25s, to have a material impact on future earnings.
By Sam Unsted; [email protected]; @SamUAtAlliance
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