Outsourcer Mitie has been tasked with managing Lloyds Banking Group branches across the country for the next five years, in a contract estimated to be worth about £850m.
The so-called integrated facilities management contract means Mitie workers will provide engineering, security, cleaning, catering and data centre services across Lloyds’ network of bank branches, and in its UK offices.
Mitie has already been doing these jobs for the high street bank for the last nine years.
Lloyds will pay Mitie depending on how well it does the job, but the outsourcer said the work should be worth about £170m a year in revenue.
The contract is not set to have a significant effect on Mitie’s forward looking financial guidance, the company said this morning, because it had already factored the added turnover in when it presented its predictions for the upcoming year in June.
Mitie chief executive Phil Bentley said: “I’m delighted that we have agreed to extend our contract with Lloyds Banking Group, our largest client, until 2024 and that we have done so under a breakthrough ‘payment by results’ structure which will ensure that all Lloyds Banking Group’s branches and facilities are maintained to the very highest levels.”
The announcement follows yesterday’s news that Mitie’s finance boss Paul Woolf has resigned to join intellectual property management and technology company CPA Global. He will leave Mitie early next year.
Chief executive Phil Bentley has revived the firm’s fortunes in recent years, dragging it back to profit after a string of profit warnings in 2016 and making a £52.8m dent in its net debt via a turnaround plan named Project Helix.
The plan has seen Mitie focus more on its strengths, while it has worked to offload non-core businesses.