(Reuters) – British outsourcer Mitie put forward a 10 million pound ($11.9 million) support plan for its employees amid a cost-of-living crisis that has squeezed British household income, while reporting a lower half-yearly profit on Thursday.
The company’s performance was boosted by COVID-19-related contracts for managing testing centres and maintaining hygiene in offices and other spaces during the pandemic, but that boom waned as cases fell and restrictions ended.
Rising inflation has also weighed on Mitie’s performance, as surging prices of everything from energy to food have forced businesses to cut costs, hitting contractors.
Workers across sectors are also striking for better pay and several companies are stepping up.
Mitie, which provides engineering, security and cleaning services and employs about 68,000 workers, said its “winter support package” includes one-off bonuses and retail discounts, along with other measures for hourly-paid workers.
The company warned that inflationary pressures will continue into the second half, but it expects to benefit from higher revenues from projects and seasonal work.
Mitie forecast operating profit before other items of at least 145 million pounds for fiscal 2023. For the year ended March 2022, it had earned 167 million pounds.
Earnings fell 20% to 68 million pounds in the six months to end-September.
($1 = 0.8404 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
