BRUSSELS: Mitie has shelved all its plans to take over businesses in Europe until after Britain’s referendum on EU membership.
The cleaning and security group believes uncertainty over a Brexit, or British exit, makes any deals on the continent too risky.
The company, which yesterday reported a 40 per cent drop in annual profits, operates mainly in the UK, with activities ranging from security at the Chelsea flower show to cleaning Lloyds bank branches.
A flurry of deals have seen it build up its presence in Germany, Ireland, France, Norway, Poland, Belgium and the Netherlands.
Boss Ruby McGregor-Smith said: ‘In the last five years we really looked at where we could expand in Europe. Now we’re putting a hold on any mergers and acquisitions while we face this uncertainty.’
Her comments come only hours after Lord Bamford became the first major business leader to back Britain’s exit from the EU.
The JCB chairman said that the UK could exist outside of the EU ‘peacefully and sensibly’ because of the size of its economy.
It is at least two years until Britain holds a referendum on membership. But business leaders have already begun taking sides on whether an exit would be bad for the country.
BT’s chief executive Gavin Patterson earlier this month said that quitting the EU would be ‘bad for business’ and vowed to ‘come out fighting’ in favour of the UK’s membership.
McGregor-Smith’s comments yesterday came as Mitie posted a sharp fall in annual profits.
