Barclays decided to downgrade its investment rating on MITIE, a support services group.

For the year 2016, Barclays expects to see increasing pressures on UK employee costs as well as rising employer pensions contributions. Once these extra costs pass through on existing contracts, it would not be a surprise “to see customers asking their services providers to share some of the cost pain when it comes to contract rebids”, a broker at Barclays said.

Analysts have already cut their price target per share by 8.2 per cent, implying a downgrade of the original price.

This Thursday, the 14th of January, MITIE’s share value went down to their lowest value of 268.3 pence per share. However, by the end of the same day the share value went up to 285.2 pence per share.

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