Mitie has just posted a £100m+ half year loss, which represents an awful outcome for the once FM sector darling. The loss comes as a result of deciding to withdraw from the Healthcare Sector as it writes off its investment in the domiciliary care provider Enara only five years after they paid more than £100m for it. 

The decision comes in part from the failure to make its domiciliary care contracts perform. Margins have come under pressure as the minimum wage makes input costs much higher than predicted. 

Other public sector outsourcers such as Capita and Interserve are also under pressure and have seen changes in senior management.

Public sector outsourcers have struggled for years to strike a balance between their public image of rapacious private sector profiteers, and genuinely helping transform our public services. I think the sector is about to reassess its relationship with central government again.