Mitie Group is closing down its mechanical and engineering contracting business to concentrate on higher margin markets.
The news comes as the group posted revenue growth for the year to the end of March of 8.4% to £1.98bn with a 5.4% jump in pre tax profits to £1211.1m.
However the M&E business incurred a trading loss of £3.1m, a significant drop on the £900,000 loss it made the year before.
The firm stopped bidding for major one-off M&E contracts last year and has now decided to abandon the market completely to concentrate resources on higher-return sectors.The withdrawal is costing the company £22.1m in closure costs of its M&E division, which had a turnover of £140m.
Redundancy costs are believed to account for £10m.
Chief executive Ruby McGregor-Smith 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.”