June 27, 2018 / 6:33 AM / 5 months ago

FCA drops inquiry into Mitie profit warning

The logo of the new Financial Conduct Authority (FCA) is seen at the agency's headquarters in the Canary Wharf business district of London April 1, 2013. REUTERS/Chris Helgren

(Reuters) - Outsourcing firm Mitie Group Plc (MTO.L) said on Wednesday that Britain’s financial watchdog had ended an investigation into the timing of a September 2016 profit warning.

The Financial Conduct Authority (FCA) launched an inquiry in August into the timeliness of Mitie’s September 2016 profit warning and the preparation and content of its results for the period to the end of March 2016.

Mitie, which provides pest control, cleaning and security services, had said then it was fully cooperating with the FCA.

In September 2016, the company said it expected first half revenue to be modestly lower and operating profit to be “very significantly” lower, hurt partly by less higher margin project work and discretionary spend by clients.

Mitie also blamed pricing and cost pressure among other factors and said then that operating profit for the full year was expected to be materially below previous expectations.

And in May 2017 it said that it might be necessary to restate its 2016 results after a review identified a number of material errors.

Mitie’s shares have lost about 40 percent in value since the company announced the FCA investigation on Aug. 29. The stock was down by more than one percent on Wednesday.

Reporting by Muvija M and Arathy S Nair in Bengaluru; editing by Kate Holton and Alexander Smith

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