12 minute read
A new workplace partnership
OUTSOURCED SERVICE MARKET NEWS AND ANALYSIS SUPPLY SIDE
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Q&A with Lorraine Davis, chair of BICSc and Mitie’s new director of cleaning services
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Financial: NHS Test & Trace services boost Serco’s half-year profits
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Sodexo gives £1m to SMEs and not-for-profits to fund apprenticeships Find out more Visit facilitatemagazine.com for daily outsourcing news
WORKPLACE EXPERIENCE
WeWork and Cushman & Wakefi eld embark on workplace partnership
by Herpreet Kaur Grewal
Flexible space provider WeWork and real estate giant Cushman & Wakefield have entered into a strategic partnership to navigate the new post-pandemic world of remote working and flexible workspace.
The partnership intends to provide clients with office operations by combining WeWork’s proprietary platform of workplace experience management software and hospitality experience with Cushman & Wakefield’s asset and facilities management services.
Together, WeWork and Cushman & Wakefield will “work to unlock opportunities to provide landlords and businesses with the ability to create a differentiated workplace experience for tenants and employees in the new hybrid world of work where flexibility remains at the forefront”.
As a part of the partnership, Cushman & Wakefield will provide $150 million [about £108 million] as an investment in a planned merger between WeWork and BowX Acquisition, which would help to reposition WeWork, which has been near collapse financially in recent years.
Sandeep Mathrani, CEO of WeWork, said: “As Covid-19 has fundamentally changed the way people work, businesses and landlords have had to rethink their approach to workspace. Partnering with Cushman & Wakefield will combine WeWork’s industry-leading workplace experience management platform and hospitality-driven community teams with Cushman’s world-class global client and property portfolio to create a solution that helps both landlords and businesses meet the demand for flexible workplaces to fit the changing needs of today’s workforce.”
Cushman & Wakefield executive chairman and CEO, Brett White, added: “With flexible workspaces being an important component of the hybrid workplace, we’re excited to partner with WeWork to demonstrate how global occupiers and investors will benefit from the power of two global leaders providing unmatched accessibility to flexible offerings, best-in-class technology and a seamless tenant experience.”
FINANCIAL
ISS GROUP UPGRADES OUTLOOK FOR 2021 ON STRENGTH OF INTERIM RESULTS
ISS Group says that important milestones have been achieved in its strategy to turn around business signal an improved outlook for free cash flow for 2021.
The Dutch-based group’s interim trading results for 1 January to 30 June show organic growth was 0.2 per cent in the first half of 2021 (H1 2020: 3 per cent) and 5.8 per cent in Q2 2021 (Q1: 5.6 per cent), supported by strong solid demand for above-base services, especially deep cleaning and disinfection. Portf olio revenue continues to be affected by generally moderate reopening of global activities aft er Covid-19 lockdowns, reflecting the wide variations across nations covered by the group.
The operating margin (before other items) was 1.5 per cent in H1 2021 (H1 2020: 2.2 per cent) – or around 0 per cent excluding restructuring costs and one-offs. Free cash flow was DKK 1.6 billion in H1 2021 (about £182 million) driven by improved operating profit and working capital development. The group says a large part of the cash flow from working capital is temporary and will result in a cash outf low in the second half of 2021.
How will you be harnessing technology to improve cleaning operations?
Q&A
Lorraine Davis
Facilitate talked with Lorraine Davis, chairman of the British Institute of Cleaning Science (BICSc) and new director of cleaning services at Mitie
How has the pandemic changed the way Mitie’s cleaning services are provided?
It’s been two months since I joined Mitie and, as can be expected when starting a new role, I’ve dedicated a big part of this time to get my head around both the cleaning business and how it fits within the wider Mitie Group.
Viruses and bacteria can spread with a simple touch and as the pandemic started it became imperative that cleaning regimes focused on frequently cleaning these critical areas. As a result, more and more of our cleaning colleagues, who usually had night shifts, can now be seen working while our customers’ employees are at the workplace to ensure that touchpoints are frequently disinfected.
Although many tasks are now done during the day, cleaning during out of office hours remains a key part of any cleaning regime. But, unlike before the pandemic, this time is now mainly dedicated to completing tasks, such as vacuuming and misting, that can disrupt our clients’ employees or could be harmful to people not wearing the appropriate PPE.
As sustainability tops many businesses’ agendas, I anticipate increased demand for more sustainable cleaning solutions, such as cleaning products that are chemical-free and have reduced packaging or equipment, like scrubber-dryers, that use less water and energy than traditional appliances. My vision is really clear, we continue to focus on, and invest in, our people and our technology. That was a big draw in me joining the company and I am determined to drive that agenda even harder. Using technology to support the work our cleaning colleagues do is key to ensure that we can deliver excellent services for our customers. As virus and germs cannot be seen by the naked eye and not many people know the science behind them, it can be difficult to get customers to buy-in to these solutions. In the autumn we’ll be launching our Cleaning Innovation Centre which will help our customers as well as our colleagues understand more about how our technology solutions work. We’ve committed to rolling out technology and innovations across all of our contracts but, before we can do this, we must show our customers that these solutions will maintain the highest cleaning standards. We’ll do this by holding forums and workshops to explain to our customers the science behind these solutions and to show how they can limit the spread of infection – the proof is in the Petri dish. For some contracts, we’ll also hold trials so clients can see first-hand what an innovation-led cleaning service looks like. Convincing customers about the value of technology is only part of the equation. We need to take our cleaning colleagues on this journey too. So after discussion with colleagues in the Mitie
I anticipate Leadership Team, we decided that we’ll open some of these real-life increased cleaning demonstrations to our demand for cleaning colleagues so that they can experience how these technologies more sustainable work. We’re also planning new cleaning solutions BICSc accredited training modules which, as chair of BICSc, I know to be an excellent way to introduce the science behind the new technologies to our colleagues. Has the pandemic led to cleaners and the cleaning industry becoming more respected? It has brought down some of the misconceptions about cleaning and improved people’s attitude to our operatives but we must continue to ensure that their work is recognised and valued. While life returns to some sort of ‘pre-pandemic’ normal, we know many people will be more respectful of our frontline heroes.
FINANCIAL
SERCO’S HALF-YEAR LEAP IN PROFITS BOOSTED BY TEST & TRACE SERVICES
by Facilitate team
Serco has announced a 19 per cent growth in revenue to £2.2 billion in its halfyearly results.
The company’s operating profit increased by 31 per cent to £116 million for the six months to June.
Serco has more than 500 contracts in 20 countries in the areas of defence, justice and immigration, transport, health and citizen services. Its profits have been bolstered by the company’s involvement in NHS Test & Trace Covid-19 services.
Chief executive Rupert Soames insisted last year that the impact of the pandemic on Serco’s profits was a “big fat zero”. Serco upgraded its profit guidance in June when it anticipated more demand than previously from its contract to run some government Test and Trace services.
Announcing an interim dividend of 0.8p per share to investors, the first since 2014, Soames said the business had grown rapidly in the past two years – its balance sheet boosted by its acquisitions of US firm Whitney,
Bradley & Brown and FM and cleaning firm Facilities First Australia. The statement says about 17 per cent of Serco’s revenues for the half-year were from Test & Trace work.
Soames said: “These are very strong results, with revenue up 19 per cent, underlying trading profit up 58 per cent, and free cash flow up 61 per cent. We have had extremely strong order intake, and the book-to-bill ratio was 190 per cent, which bodes well for the future. Our three largest divisions – Asia-Pacific, North America and UK & Europe – all delivered good growth, and this reflects both the trust our government customers have shown in us during the pandemic, and Serco’s ability to respond to their requirements with speed and at scale.”
He added: “Serco has grown rapidly in the past two years, made possible by the investment we have made since 2014 in transforming our culture, systems and processes, regaining the trust of customers, and building a strong and experienced management team.”
APPRENTICESHIPS
Sodexo gives £1m for SME apprentices
Sodexo is providing £1 million of its apprenticeship levy to support 106 new apprentices in “numerous small companies and not-for-profit organisations to upskill their workforce” including those in hospitality.
The money is helping to train people for roles across many sectors including trainee paramedics for the London Ambulance Service and health and support staff for community organisations and sports clubs in areas such as Salford, Worcester and Bath.
The levy is also funding a staff member at a primary school in Salford – near one of Sodexo’s main offices – enabling them to gain a Level 5 qualification.
In addition, Sodexo is offering its levy to help several hospitality workers in the hotel and catering industry as firms across the UK face recruitment problems owing to the pandemic.
Large businesses such as Sodexo can give up to 25 per cent of their apprenticeship levy to other bodies. In February’s National Apprenticeship Week, it vowed to donate £800,000 a year to benefit SMEs and not-for-profits. Having increased the amount given to other bodies to meet this commitment, Sodexo has given a total of £1,000,629 since 2019.
IN BRIEF
Kier reshapes
UK construction business to grow Kier has outlined a new structure for its UK construction business to support its aim for sustainable growth in key sectors across England, Scotland and Wales. The structure consists of five business units including four regional divisions, its maintenance offering, as well as two newly formed functions that will focus on operational excellence and closer alignment to clients and markets, offering sustainable solutions.
Mitie sets out roadmap to a net zero carbon estate by 2025 Mitie has announced its roadmap to achieve a net zero estate by 2025. The FM provider currently has a portf olio of more than 50 sites in the UK, and pledges to have four net zero properties by the end of the financial year 2022, and thereaft er an additional 14 net zero sites every year to reach a fully decarbonised estate by 2025. The commitment is part of Mitie’s Plan Zero pledge to use its expertise in facilities and energy management to reach net zero carbon for its operational emissions by 2025.
NHS Property
Services bolsters board with four appointments NHS Property Services, which runs about 10 per cent of the NHS estate, has appointed four nonexecutive directors to the board. Nick Moberly and Adrian Belton join from roles in executive teams at NHS trusts. Mark Lomas becomes a non-executive director of People, Culture and Diversity & Inclusion, and Caroline Wehrle takes the role of non-executive director of audit and governance.
EPHFMERA
MARTIN BELL, OUTGOING IWFM CHAIR, ON THE RELENTLESS DEVELOPMENT OF THE WORKPLACE AND FACILITIES MANAGEMENT ROLE
NEW IWFM CHAIR MARK WHITTAKER ON THE INCREASINGLY SYMBIOTIC RELATIONSHIP BETWEEN FM AND HR DISCIPLINES
CONSULTANT LUCY JEYNES ON THE IMPORTANCE OF FM IN THE NEW HYBRID WORKING ENVIRONMENT
70%
CONSULTANT CHRIS WESTON SUGGESTS A ‘RULE OF THUMB’ FOR AVOIDING BEING LEFT WITH UNSUPPORTED OR INCAPABLE TECH SOLUTIONS
FM MARKETING SPECIALIST JULIE BIRCH QUESTIONS THE CLAIMS OF IMPROVED PRODUCTIVITY AMONG REMOTE WORKERS WHEN CUSTOMER COMPLAINTS ARE ON THE RISE
JAMIE MCDONALD, VP OF CUSTOMER OPERATIONS AT ALCUMUS, OFFERS A REMINDER THAT WORKPLACE EXPERIENCE STRETCHES BEYOND THE PHYSICAL WORKPLACE “The Workplace Regs is such an important and useful piece of legislation – it covers all the basics of what FMs need to do and SO many people still aren’t aware of it! The ACOP is the best and most user-friendly way to digest it and it is freely downloadable here: tinyurl.com/fac0910-acop.”
CONSULTANT BETH GOODYEAR SEEKS TO ENSURE THE WIDEST POSSIBLE AUDIENCE FOR A DOCUMENT WITH PERHAPS THE BIGGEST POTENTIAL IMPACT
