IFM contract extension with Lloyds Banking Group

Mitie Group plc

12 September 2019

LEI number: 213800MTCLTKEHWZMJ03

Mitie secures IFM contract extension with Lloyds Banking Group

Mitie Group plc (LSE: MTO) ("Mitie" or "the Group") today announces it has been awarded an extension to its contract to provide integrated facilities management (IFM) services to Lloyds Banking Group (LBG).

Mitie has been delivering IFM services to LBG since 2012 under a transformational partnership and this agreement extends the partnership through to the end of 2024. The extended contract represents a step change from a traditional input-based service model, to an output-based model, where the payments received by Mitie are determined by the outcomes delivered (i.e. payment-by-results), thereby ensuring that the interests of both Mitie and Lloyds Banking Group are completely aligned. The extended contract is expected to generate revenues of approximately £170m per annum.

The extension covers 30 service lines (including engineering, security, cleaning, catering and data centre services), which will continue to be delivered across LBG's nationwide branch network and office estate.

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 FY 19/20 provided to the market at full-year results publication in June 2019.

Phil Bentley, Mitie's Chief Executive Officer, commented: 

"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."

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About Mitie Group plc

Founded in 1987, Mitie is the UK's leading facilities management and professional services company. It offers a range of specialist services including Engineering Services, Security, Professional Services, Cleaning & Environmental Services, and Care & Custody.

Mitie employs 48,900 people across the country, looking after a large, diverse, blue-chip customer base, from banks and retailers, to hospitals, schools and government offices. It takes care of its customers' people and buildings, by delivering the basics brilliantly and by deploying advanced technology. It is pioneering the Connected Workspace, using smart analytics to provide valuable insight and deliver efficiencies to create outstanding work environments for customers.