In a pre-close trading update, Mitie Group (MTO) confirmed that full-year profits will be within the range of current expectations. However, the group has seen revenue shortfalls in the second half of the financial year, as some contracts have been either delayed or cancelled. As a result, revenues will be below the current range of market expectations.
The outsourcer has been focusing on its cost base in a bid to prop up margins to counter tightening markets, but it's not the only organisation determined to reel-in expenditure. Mitie noted that after a strong first half, growth in its Property Management business slowed during the second half of the year due to changes in spending patterns by local authority and housing association clients. It mirrors a sector-wide problem brought about by a statutory one per cent reduction in social housing rents coming into effect in April.
