Outsourcing group Mitie Group saw profits shrink in the first half of the year, hurt by customer uncertainty in the wake of the European Referendum.

The group’s pretax loss fell to £100.4 million for the six months ended September 30th, down from last year’s pretax profit of £45.1 million. Revenue fell 2.6 per cent in the first half, from £1.123 billion to £1.093 billion, with operating profit before other items falling 40 per cent to £35.4 million from £58.1 million.

In September, the company cut its operating profit forecast due to “changing market conditions as clients adjust to rising labour costs and economic uncertainty”.

Chief executive Ruby McGregor-Smith said:

“The steps we have taken to counter these impacts include the restructuring of both frontline and support functions across facilities management 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.”

Mitie Group (LON:MTO) shares fell significantly in early trading, currently down 14.43 percent at 181.30 (0809GMT).

21/11/2016