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| Version 1 | Version 2 |
|---|---|
| Mitie sells home healthcare business for £2 | Mitie sells home healthcare business for £2 |
| (35 minutes later) | |
| Outsourcing firm Mitie, which has issued three profit warnings in the past year, is selling its home healthcare business for just £2. | Outsourcing firm Mitie, which has issued three profit warnings in the past year, is selling its home healthcare business for just £2. |
| The buyer is private equity firm Apposite Capital, which will also receive £9.45m from Mitie to fund the business's trading losses. | The buyer is private equity firm Apposite Capital, which will also receive £9.45m from Mitie to fund the business's trading losses. |
| It will also write off £36.8m in costs. | It will also write off £36.8m in costs. |
| In November, Mitie's half-year results showed a £100m loss, compared with a £45m profit a year earlier, which it blamed on "changing market conditions". | In November, Mitie's half-year results showed a £100m loss, compared with a £45m profit a year earlier, which it blamed on "changing market conditions". |
| It said at the time that it was withdrawing from the home healthcare market and had put its healthcare unit "under strategic review". | It said at the time that it was withdrawing from the home healthcare market and had put its healthcare unit "under strategic review". |
| Shares in Mitie jumped almost 10% in morning trading to 227.2p following news of the deal, which covers the firm's Enara and Complete Care brands. | Shares in Mitie jumped almost 10% in morning trading to 227.2p following news of the deal, which covers the firm's Enara and Complete Care brands. |
| Dual squeeze | |
| Enara, trading as MiHomecare, provides care at home for people who require help and support because of illness, infirmity or disability. | Enara, trading as MiHomecare, provides care at home for people who require help and support because of illness, infirmity or disability. |
| Complete Care is describes as providing "nurse-led, complex care solutions in the home". | Complete Care is describes as providing "nurse-led, complex care solutions in the home". |
| The home healthcare market has been facing a dual squeeze from rising staff costs and local council spending cuts, putting intense pressure on margins. | The home healthcare market has been facing a dual squeeze from rising staff costs and local council spending cuts, putting intense pressure on margins. |
| Mitie's exit from the healthcare market follows a similar move by fellow outsourcer Mears. | Mitie's exit from the healthcare market follows a similar move by fellow outsourcer Mears. |
| In December, Ruby McGregor-Smith stepped down as chief executive of Mitie and was replaced by former British Gas boss Phil Bentley. | |
| Mitie's latest move comes amid reports that the firm is considering appointing an employee representative to its board, as part of reforms drawn up by Mr Bentley. | |
| However, the company has declined to comment on the report in The Times that was published on Tuesday. |