Mitie subject to another FRC investigation

Mitie fleetThe UK’s accounting watchdog has launched another investigation into the finances of troubled support services contractor Mitie.

The Financial Reporting Council (FRC) said today that it would be looking into the “preparation and approval” of Mitie’s financial statements for the year ending March 31, 2016.

Mitie said today: “The company understands that the investigation does not relate to any current directors of Mitie, any former non-executive directors of Mitie or Sandip Mahajan .”

An investigation into Deloitte’s auditing of Mitie’s accounts for the years ending 31 March 2015 and 2016 was launched by the watchdog at the end of July.

The FRC said it had concluded the probe and that its “concerns have been satisfactorily addressed”.

An investigation into the timing and content of two of the firm’s profit warnings last year is already the subject of a separate investigation by the Financial Conduct Authority (FCA).

Mitie also published its interim results today, with pre-tax profits down 61% to £6.1 million in the six months to September, despite a 4% rise in revenues to £959.7m.

Chief executive Phil Bentley said: “We have continued to build foundations, take out costs, simplify systems and processes, invest in our capabilities and put the customer at the heart of our organisation.”

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