Shares in outsourcing group Mitie
have sunk by a quarter after it cut its profit outlook amid uncertainty
over the UK's decision to leave the EU and other "economic pressures".
Mitie said its profits would be "materially below" its expectations as a result of challenges it faced.
These included lower UK growth rates, changes to labour laws and public sector spending cuts.
It also said "uncertainty both pre and post the EU referendum" was to blame.
Mitie
is one the UK's largest outsourcing groups, offering facilities
management services to clients such as the NHS, London City Airport and
Linkedin.
Its profit before tax increased by 0.7% to £114.1m in
2015, but in May this year it warned uncertainty around the EU
referendum was causing clients to delay or cancel projects.
It also said that the introduction of the National Living Wage in April would add to its costs in 2016.
The
company, which is led by chief executive Baroness Ruby McGregor-Smith,
said it was taking "strong action" to counter the impact of these
pressures including making cost savings across the group.
It also said a stronger forecast second half would lead to a slight growth in sales at the end of the year.
However,
operating profits are expected to be significantly below expectations.
According to Reuters, analysts Liberum have cut their full-year earnings
per share guidance by 8%, warning that Mitie's management is preparing
for a 10-20% fall in core earnings.
The news could also negatively impact rival outsourcing groups Carillion and Interserve, Liberum said.
In early afternoon trading, Mitie shares were down more than 2% to 298.9p.
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