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Mortice Limited +£55m Contract with University of Hertfordshire

Mortice Limited (LON:MORT), the AIM listed security and facilities management company, announced today that its wholly owned subsidiary, Office & General Group Limited (O&G), has been confirmed as the new facilities services provider for the University of Hertfordshire in a contract worth in excess of £55 million spread evenly over the next 10 years.

The facilities services contract will cover the whole University estate including planned and reactive maintenance, statutory compliance work, as well as services ranging from grounds maintenance and cleaning to hygiene, pest control and helpdesk services. The University is located in Hatfield twenty minutes from central London and has two main campuses, College Lane and de Havilland, situated less than a kilometre apart that are home to 25,000 students in ten schools.

This new contract will supersede and expand upon the previous agreement between O&G and the University which was worth c. £1.8m annually, and has been secured following a seven-month competitive procurement process. As part of the contract O&G will commit to spending in excess of £1 million over the period of the contract in order to ensure that all services exceed expectations and enhance the overall student experience. This will include the establishment of a bespoke customer services training centre, cutting edge technology and equipment, a dedicated Computer-Aided Facility Management system, an MBA and training placement programme and investment in student led business ventures.

The contract cements O&G’s position as one of the top facilities management service providers to the higher education sector. Given the fixed price nature of the new contract, it is expected to be earnings enhancing.

Andrew May, Director of estates, hospitality & contract services at the University of Hertfordshire, said: “The University of Hertfordshire is delighted to be working with O&G and I am hugely excited by the benefits this partnership will bring to our students, staff and visitors. As well as improving the quality of service delivery, O&G are able to make efficiency savings and introduce commitments to the partnership that are completely aligned to the University’s corporate strategy of becoming internationally renowned as the UK’s leading business facing university.”

Commenting, Manjit Rajain, Executive Chairman of Mortice Limited, said: “This represents our largest contract win to date since O&G became part of Mortice in September last year. At the time of acquisition we expected O&G to be immediately earnings enhancing, and the size and scale of this contract highlights the upside potential that O&G offers shareholders, particularly when combined with the strong organic growth of our existing business. The fact that this deal was won following a highly competitive tender process demonstrates O&G’s strong differentiated position in the UK facilities management market and provides us with confidence in O&G’s ability to contribute to our continuing strategy of growth.”

 

About Mortice Limited

Mortice Limited is an AIM listed security and facilities management company, incorporated in Singapore and based predominantly in India and with operations in Saudi Arabia, Sri Lanka and the UK. Mortice operates under two brands:

* Peregrine – provision of guarding and security services to a wide range of clients from blue-chip companies, smaller businesses, commercial and private properties, and individuals.

* Tenon – provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include some of the world’s most respected blue chip and home-grown companies. Within the Tenon group of companies Mortice also offers security surveillance services through its subsidiary Soteria and mechanical and engineering services via Rotopower

The business is growing and profitable and is focused on expanding its geographical footprint and growing through targeted acquisitions, as well as organically.

In 2015 the Company established Tenon UK and through this wholly owned subsidiary acquired UK based Office & General Group Limited, an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK. In addition, the Company acquired a 51% majority stake in Singapore-based security company Frontline Security Pte. Ltd, and has an option to acquire an additional 25% within three years.

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