Mitie looks to create jobs in Yorkshire despite group losses

Outsourcing firm Mitie recorded a statutory first-half loss after it incurred higher than expected costs to exit its engineering and asset management businesses.

The exceptional costs of £58.3m dropped Mitie into the red for the six-month period to September 30, leading the business to an unexpected statutory pre-tax loss of £1.3m. Despite the negative news, Mitie remain buoyant as profits rose by 3 per cent when the exceptional costs are excluded.

Ruby McGregor-Smith CBE, chief executive of Mitie, said: “Our order book is substantial, our pipeline strong. We are in a good position and look ahead with confidence.”

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John Telling, director of Mitie’s corporate affairs, said: “We draw a line under the loss-making businesses. Our core businesses which are predominantly facilities management are doing well.

“They grew by 6.3 per cent first half of the year. That accounts for about 80 per cent of Mitie and we’ve had a successful six months in facilities management.”

Mr Telling told The Yorkshire Post that the job losses due to its exit in engineering and asset management have not impacted Yorkshire as the majority of those operations were in the South.

“We have over the past two years unfortunately had to let go of about 1,000 people. Jobs in Yorkshire won’t be affected, as both the engineering and asset management aspects of the business were both based in the south,” he said.

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Mr Telling actually said he believes that employment is likely to increase in Yorkshire.

He said: “Our Yorkshire business is actually doing well our national call centre is based in Leeds and it’s expanding rapidly.

“We also have the main office for our contract with Lloyds group in Leeds as well.

“We’re probably increasing employment in Yorkshire at the moment.”

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Mitie, which employs over 13,000 people in the North, has said that it has completed its exit from loss-making businesses.

Mr Telling also reassured shareholders calling the exits “the right decision.”