Baroness Ruby McGregor-Smith is set to signal a dividend cut at Mitie as she stepped down after nine years at the helm of this FTSE 250 company.
Baroness McGregor-Smith announced she was stepping down just weeks after she unveiled a September profit warning that knocked 30% off the company’s shares, The Sunday Times has reported. She was due to present the interim results, before she hands over her role to Phil Bentley next month. The former chief executive of Cable & Wireless Communications is expected to shake-up the company that employs more than 60,000 people who manage care homes, provides security, cut grass and even run prisons.
McGregor-Smith, 53, transformed Mitie into a FTSE 250 company, but it has been allegedly dogged by concerns over its accounting methods and growth sustainability.
RBC Capital Markets reportedly slashed its price target for the company and cut its forecast for the £42m annual investor payout. The bank reportedly said: “While the interim dividend could be held, given the current direction of earnings, it is difficult not to envisage a cut to the final dividend.”
