MITIE winds down engineering business and posts higher FY profits

Support services company MITIE Group said it was winding down a loss-making business as it reported higher annual profit and revenue.MITIE, which serves organisations including Network Rail, pub group Mitchells & Butlers, the British government and local councils, said it was near to closing its mechanical and electrical engineering construction business, which made one-off losses of £13.6m in the year to March 31st.It said it was also reducing exposure to the design and build part of its former asset management business, which had one-off, exceptional charges of £25.4m in the year.Headline pre-tax profit rose 4.3% to £113.3m on an 8.2% lift in revenue to £2.1bn while headline operating profit increased 6% to £127.5m.The group increased its total dividend for the year by 6.8% to 11p per share.MITIE said it kept several of its most significant contracts during the year including a £75m deal with Network Rail and a £110m contract with Capita.It also won a £180m eight-year contract with the Home Office, to run immigration centres near Heathrow airport.Chief Executive Ruby McGregor-Smith said: "We expect outsourcing opportunities will continue to grow."PW Mitie