Mitie investigated by financial watchdog over profit warning last year

Mitie said that it is fully cooperating with the FCA

The FCA said that it had informed Mitie on 25 August that it had commenced the investigation pertaining to 'the timeliness' of the profit warning (Reuters)

The UK’s financial watchdog has announced that it is investigating Mitie, over the timing of a profit warning that the outsourcing company issues last year.

In a statement, the Financial Conduct Authority said that it had informed Mitie on 25 August that it had commenced the investigation pertaining to “the timeliness” of the profit warning, issued on 19 September last year.

It said that it would also be looking at the “manner of preparation and content of the company’s financial information, position and results for the period ending 31 March 2016”.

Mitie said that it is fully cooperating with the FCA but that it does not intend to update the market until the investigation is complete.

In September, Mitie said that profits would be lower than previously expected as a result of lower growth in the UK, increasing labour costs and public spending cuts.

Neil Wilson, a senior market analyst at ETX Capital, said that the news would likely deal a fresh blow to Mitie at a critical time.

“While we thought it may be turning a corner with new leadership and a focus on cutting costs, this is not the kind of thing to reassure investors who are only now beginning to warm to the stock again after apparently shaking off last year’s loss,” he said.