The firm confirmed last May that it would be quitting the sector with £22.1m set aside in closure costs at the loss-making business.

In a management statement today, Mitie said: “The exit from our cyclical mechanical and electrical engineering contracting businesses continues, although is taking slightly longer than anticipated.

“As a result, we now anticipate that losses in the second half of the year will be around £3-5m higher than those reported in the first half of the year.”

The M&E division had a turnover of £140m and made a loss of £3.1m in 2012.

Mitie said it will still carry out M&E maintenance work.

The firm added: “We are continuing to successfully re-position the group to target higher growth and higher margin areas.

“Our long-term strategy is focused on growing in our core markets of facilities and property management, which are differentiated by our specialist energy consulting services.”