Outsourcer to be probed by regulator

Britain’s financial watchdog has launched an investigation into struggling outsourcer Mitie.

In a stock market announcement the company said the Financial Conduct Authority has begun a probe.

“The FCA has commenced an investigation in connection with the timeliness of a profit warning announced by the company on 19 September 2016 and the manner of preparation and content of the company’s financial information, position and results for the period ending 31 March 2016,” the firm said.

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

In September shares in Mitie tumbled after the firm warned full-year profits would come in “materially below” expectations due to uncertainty caused by the EU referendum, lower growth and higher staff costs.

The FCA probe follows an announcement last month that accountancy watchdog the Financial Reporting Council had launched a separate investigation into Deloitte’s auditing of Mitie.

In June, Mitie swung to a fullyear loss after the firm took a hit from accounting issues.

The group, which has issued a string of recent profit warnings, reported a £58.2m pre-tax loss in the year to March 31.

Outsourcer Mitie has issued a string of profit warnings.