Mitie sheds pest control business amid efforts to restructure
Outsourcing group Mitie revealed plans to offload its £40m pest control business this morning, as it ramps up efforts to restructure the business in the wake of several profit warnings.
The FTSE 250 firm said it would sell its pest control arm to business services giant Rentokil Initial as it seeks to plough more of its resources in technology and staff retention.
Bristol-based Mitie, which provides services from property management to healthcare, has also formed a preferred supplier partnership with Rentokil, to offer a range of services to Mitie’s customers.
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Today’s announcement comes as the firm looks to bounce back from a series of profit warnings and softened forecasts in the last several years, which it has blamed largely on Brexit volatility and growing operational costs.
The collapse of fellow outsourcer Carillion in January has also shook confidence within the sector, with boss Phil Bentley saying in March that its demise “has raised fundamental questions about the industry”.
Last week Mitie issued a guidance which said half-year profits would be flat to slightly down on the same period a year ago, as Bentley warned that “the environment in our industry remains highly competitive, especially when it comes to contract renewals”.
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