(Reuters) - Outsourcing provider Mitie (L:MTO) said it expected "modest" revenue growth for its current financial year and remained committed to improving its profitability 4.5 percent to 5.5 percent in the medium term as its restructuring progresses.
Mitie has been investing heavily in technology and staff retention as new management seeks to rebuild and reshape the company after a string of profit warnings and investigations into past financial accounts and disclosure.
"The magnitude of the internal restructuring and the number of things that have needed to be 'fixed' are far more significant than was earlier anticipated. However, much of the heavy lifting is now complete.," Chairman Derek Mapp said.
Mitie operates in a fiercely competitive market, and the collapse of rival Carillion in January has intensified uncertainty about the future of a sector that has tended to chase large contracts on slim margins.
Mitie reported adjusted operating profit down 6 percent to 77 million pounds and adjusted revenue up 3 percent to 2.2 billion for its financial year to end-March, in line with its own guidance and analysts' expectations.
The company's order backlog rose more than 2 percent to 4.5 billion pounds for the year ended March 31, 2018.
Mitie said on Thursday it expects to hold the dividend flat until, at least the end the turnaround programme. It recommended a final dividend of 2.67 pence, taking the total dividends for the year to 4 pence.