Outsourcing giant Mitie is to continue cleaning hundreds of branches and offices for Bank of Scotland-owner Lloyds Banking Group after sealing a £170 million-a-year contract extension.
Mitie has been providing integrated facilities management (IFM) services to Lloyds since 2012 under a “transformational partnership” and the latest agreement extends that deal through to the end of 2024.
The extension covers 30 service lines, including engineering, security, cleaning, catering and data centre services, which will continue to be delivered across the banking major’s nationwide branch network and office estate.
Mitie said the contract was expected to generate revenues of about £170m per annum. It added: “The extension of this significant contract with one of Mitie’s major customers had been factored into guidance on revenue growth and operating profit in [financial year] 19/20 provided to the market at full-year results publication in June.”
Chief executive Phil Bentley said: “I’m delighted that we have agreed to extend our contract with LBG, our largest client, until 2024 and that we have done so under a breakthrough ‘payment by results’ structure which will ensure that all LBG’s branches and facilities are maintained to the very highest levels.”
In July, Mitie said it had extended its relationship with public body Historic Environment Scotland, securing a five-year cleaning contract worth some £4.4m.
The agreement covers specialist cleaning services for more than 50 historic buildings and ancient monuments in the HES portfolio, such as Stirling Castle, Melrose Abbey and Edinburgh Castle.
That announcement came just weeks after Mitie, whose contracts in Scotland include maintaining the Scottish Parliament building, hinted at further job cuts as its turnaround continues “at pace”.