Emcor last week announced it was pulling out of the UK construction market to focus on facilities management services, and now outsourcing giant Mitie is quitting the M&E market.

Mitie said it was exiting the M&E market, which was generating “margins well below the group average”.

Mitie said: “We are focused on markets where we see potential for growth and which meet our margin targets. To this end, we have taken the decision to further reduce our exposure to cyclical markets, in particular our mechanical and electrical engineering contracting businesses, which we are exiting.”

“These developments further strengthen our position in the facilities management outsourcing market as well as the fast growing healthcare and energy markets, and leave us in a strong position as we enter the new financial year.”

Last November Mitie said it would no longer target large one-off M&E installation contracts after conducting a review of its underperforming divisions.

Ruby McGregor-Smith, MITIE Group chief executive said: “Whilst the economic environment remains challenging, we have reshaped the business to focus on long-term facilities management opportunities, as well as higher margin healthcare provision and energy consulting, all of which will support our growth aspirations.”

Completing a poor month for the M&E sector in the UK, West Midlands M&E firm Farrelly Building Services also entered administration on 14 May.  We understand that the company, which has been trading since 1995, worked for clients such as Asda and Hilton hotels, and had a framework agreement with Interserve/PriDE for Ministry of Defence projects.

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