Tenon FM has reported annualised turnover of around £39M (following the acquisition of what was O&G by the Tenon Group of companies in 2015) and continued growth on the back of the £55M facilities services contract with University of Hertfordshire announced in February.
The ten-year deal with University of Hertfordshire points towards more ambitions within the UK further education sector, confirmed in August when Tenon FM was the only contractor to be appointed to all three elements of the London Universities Purchasing Consortium (LUPC) framework for cleaning services.
The LUPC framework is split into three lots – one-stop shop cleaning and associated support services, residential cleaning services and non-residential cleaning services. Birkbeck College; UCL’s Institute of Education; the School of Oriental and African Studies; the Royal College of Music, the Royal College of Art, Heythrop College and Goldsmiths, University of London, amongst others are all part of the consortium. It will last three years with the option to extend for a further 12 months and is worth £60M in total.
Tim Hancock, chief executive of Tenon FM said:
“We’ve picked up great momentum since we became part of Tenon. The contract with University of Hertfordshire is fully mobilised now and is already demonstrating that our one-team ethos can work for any further education client. That sector experience helped us qualify for the LUPC framework and we’re looking forward to hearing news about projects flowing from that very soon. We’ve got exciting plans for the rest of the year and 2017 and we know we will be making even more of an impression on the UK FM market.”
Tenon FM is just one part of the Tenon Group of companies, an Integrated Facilities Management Corporation based in India that sits within Mortice Group (which is AIM listed as a security and FM company). As a whole the Mortice Group reported very positive results for its year ended March 2016, with 51% growth and revenues of $133.5M (FY 2015: $88.4M) that included around 300 new clients added world-wide and more than 85% of income generated from repeat business. In the UK, Tenon FM contributed c. £23.23M ($30.8M) to these results over the seven months ended 31 March 2016, equating to annualised revenues of around £39M.
Manjit Rajain, executive chairman of Mortice Limited, said:
“This was a transformational period for us backed by strong underlying year-on-year growth, which was further enhanced by the acquisitions of O&G and Frontline. We have laid the foundations for continued growth and have a healthy pipeline in place. Furthermore, we are extremely pleased by our growing presence in the UK and the strong performance of Tenon FM. Underpinned by increasing levels of visibility and repeat business, the Company is well positioned to further scale up its operations and build on the momentum achieved. We very much look forward to updating the market with further developments in due course.”