Facilities Management (FM) company, Mitie Group, has secured a seven-year contract extension with Thales UK, worth £17 million per year.
The contract will see Mitie deliver integrated FM services, including energy management, cleaning, landscaping, security, catering and waste management at 16 Thales sites across the UK and Ireland, including its Reading HQ.
Thales UK, part of the global technology group, operates across markets in defence and security, aerospace and space, digital identity and security.
Mitie will install more than 4,000 new sensors across the Thales estate to reduce the downtime and energy use of critical building systems, like heating and ventilation.
Monitoring real-time performance data of building equipment will enable Mitie’s engineers to detect and provide maintenance before issues arise.
Building on its existing 10-year partnership with Thales, the new contract is worth £17 million per year to Mitie.
“This contract extension is testament to the strong partnership we’ve built with Thales over the past ten years,” said Dan Guest, MD, Technical Services, Mitie.
“We look forward to bringing even more innovative technology to the contract to generate valuable insights on building performance, while at the same time driving efficiencies.”
Russell Norton, UK real estate director, Thales UK, added: “It will support a move to a new ‘digital FM platform’ that is focused on the key operations of the business across the UK.”
The new contract with Thales follows Mitie securing a five-year FM contract with HMRC worth £130 million, and before that a four-year FM contract with Great Western Railway.
Mitie recently delivered a strong financial performance as it implements its new three-year strategic plan.
Revenue for the six months to 30 September 2024 rose 14 per cent to £2.4 billion (H1 FY24: £2.1 billion), generating a pre-tax profit of £94.5 million (H1 FY24: 84.3 million).
The firm reported 8 per cent organic growth was driven by new contract wins, scope increases and pricing, and 6 per cent contribution from acquisitions.
Its investment in technology, sales & marketing, and project capabilities aims to strengthen its market position and increase its pipeline.
Was this interesting? Try: JRL Group confirms equity deal with IJM Corporation
If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.