Mitie faces accounts probe

THE accounting watchdog has opened a fresh probe into troubled Mitie’s finances under exboss Ruby McGregor-Smith.

The Financial Reporting Council is looking into how the outsourcer’s statements for the year ending March 31 were prepared and approved. It is already investigating accountant Deloitte’s audit of the cleaning, security and temp firm.

The latest probe is expected to look at ex-employees. Mitie said it did not involve current directors, former non-executive directors, or recently departed finance director Sandip Mahajan. Bosses insisted yesterday: ‘This investigation is not into Mitie itself and Mitie is not the subject of any new FRC investigation.’

The same accounts as well as a profit warning in September 2016 are already also under investigation by the Financial Conduct Authority.

McGregor-Smith, 54, stepped down as chief executive in December after last September’s profit warning, which sent shares down more than 28pc.

It has since issued two more profit warnings, as it battled ris- ing labour costs and penalties for getting out of low-margin contracts. Finance director Sarah Baxter left in April.

Mitie said profits for the halfyear ending September 30 i ncreased 5.8pc to £ 32.6m. Bosses plan to pay an interim dividend of 1.33p, compared to 4p last year.

Chief executive Phil Bentley said: ‘We have much more to do, but we are very much on track.’

Yesterday the FRC closed a third investigation into Mitie’s accounts for the year ending March 2016, with no further action.