Mitie issued its third profit warning in four months on Tuesday, as the troubled outsourcing group announced the latest in a string of boardroom changes.
Mitie said it now expects to report underlying operating profits of between £60m and £70m, after its property management and technical facilities management businesses were affected by “client deferrals and investment plan delays”, and it identified an extra £14m in one-off charges.
The company added that it is implementing management changes to address underperformance in its cleaning division.
Mitie said it expects to be able to continue to meet contractual banking convenants.
Analysts at Cannaccord Genuity said the estimates represent around a 30 per cent downgrade to Mitie’s headline profit estimates, and “effectively removes any anticipated recovery in H2 trading”.
In a separate announcement, Mitie announced the appointment of Sandip Mahajan to replace current chief financial officer Suzanne Baxter.
Mr Mahajan will join the company immediately, and will succeed Ms Baxter on February 10.
Phil Bentley, Mitie chief executive, said:
I would like to offer my thanks to Suzanne for her support during the transition, and I wish her the best for the future. I am delighted that Sandip is joining Mitie. He brings a wealth of experience in financing and in improving the operational performance of long term contracts. I am sure he will make a significant contribution to Mitie and I look forward to working with him.