Mitie exits healthcare market for £2

Outsourcing firm Mitie has sold its healthcare arm for just £2 after it issued three profit warnings in the last 12 months.

Private equity firm Apposite Capital is the buyer and will also receive nearly £10 million from Mitie because of the business’s trading losses.

On top of this, it will also write off £36.8 million in costs, according to a BBC report.

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Last November Mitie reported a £100 million loss which prompted it to say it was withdrawing from the home healthcare market.

Firms in the home healthcare market are struggling across the board as a combination of rising staff costs and local council spending cuts pile pressure onto margins.

The news follows a similar move by Mears, another outsourcer which recently exited the healthcare market.

Image: Getty

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