MITIE pulls out of M&E
UK: MITIE, one of the UK's largest services contractors, is closing down its mechanical & electrical division, due to the slump in the market and poor margins.
The announcement follows the company's decision in November to reduce its large M&E contracts and retrain and redeploy mechanical and electrical staff into its facilities management division.
A statement by the company stated: 'In response to the fundamental changes taking place in our markets, we have taken steps to evolve the structure of our business. We have reduced our exposure to the cyclical mechanical and electrical engineering contracting markets as they are unable to offer strong margins and good growth opportunities.'
In its latest results, the M&E division generated revenue of £139.9m, down over 20% on last year, and incurred a trading loss of £3.1m.
MITIE has not said how many employees will be affected but has put the business closure costs at £22.1m.