19 minute read
Sodexo supports growth with results
OUTSOURCED SERVICE MARKET NEWS AND ANALYSIS SUPPLY SIDE
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As The Office Group and Fora amalgamate, what now for the serviced office market?
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Q&A with Steve McGregor, group MD at DMA – why FM must adopt smart tech fast
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Wates Group secures £90 million sustainability linked loan Find out more Visit facilitatemagazine.com for daily outsourcing news
FINANCIAL RESULTS
Sodexo reports growth with results
by Facilitate Team
our Appetite for Action campaign.”
On the closure of Covid-19 test centres in England, Haley said: “We are proud of everything our teams achieved to support the government’s response to the pandemic. We are committed that every one of our colleagues and casual workers is treated fairly and recompensed in accordance with their employment rights and are doing all we can to help them secure new work and prepare for their future.”
“We are
Service provider Sodexo announced first-half fiscal year 2022 results that indicate a 19% growth in revenues. Organic revenue growth was around 15% and underlying operating profit at a margin close to 5%.
Citing several sizeable contract wins over the past six months, Sean Haley, region chair for Sodexo UK & Ireland spoke of sustainability and social value objectives.
“We continue in our commitment to grow responsibly with a defined purpose and over the last six months have made advances in our positive impact on the communities in which we live and work. This includes the publication of our roadmap to net zero and decarbonisation of our business. One area of progress on this is our engagement with industry and political stakeholders to address the urgent issue of tackling food waste through pleased to see our Sodexo Live! business reinvigorated and workplaces welcoming workers back; this is helping us offer our test centre colleagues redeployment opportunities as we strengthen in these areas.”
“We remain committed to ensuring that through our operations we have a positive impact on the communities in which we live, work and serve, and will continue to do all we can to support the health and wellbeing of our colleagues.”
ACQUISITION
NG BAILEY FINALISES ACQUISITION
Engineering and services provider NG Bailey has finalised its acquisition of Cambridge-based Kershaw Service and Maintenance business to bolster its position in the hard FM sector. Kershaw Service and Maintenance was formerly part of Kershaw Mechanical Services Ltd, a provider of mechanical, electrical and hard FM services that went into administration earlier this year.
NG Bailey said the takeover allows it to strengthen its presence in the hard FM field, with a focus on mechanical and electrical services.
The acquisition is set to generate over £4 million of additional annual turnover and more than 25 skilled employees from Kershaw’s service team will join NG Bailey. The team will operate within its established facilities service business unit.
The Kershaw service and maintenance business has supplied hard FM services across a range of sectors and supported clients with planned, reactive and project services for at least 75 years.
David Hurcomb, NG Bailey’s CEO, said: “Bringing the Kershaw service and maintenance business into the NG Bailey fold provides a natural extension to our already successful range of services.”
OFFICES
What now for the serviced office market?
By Facilitate team
In recent weeks, fexible workspace firms (The Office Group (TOG) and Fora announced their intention to amalgamate, subject to approval. The combined group intends to be the ‘leading flexible workspace company in the UK and Europe’, the merger bringing together complementary businesses with similar cultures and design-led workspaces.
Although the financial terms of the proposed merger have not been disclosed, the move is indicative of a served office sector responding to the initial impact of mainstream hybrid working.
The demand for flexible workspace is growing rapidly across all sectors as businesses seek greater employee productivity, comfort and wellbeing, as well workplace designs and amenities to suit different working styles in wellconnected locations.
The combined group would manage 72 locations across London, Cambridge, Oxford, Reading, Bristol, Leeds, Berlin, Frankfurt and Hamburg. There are also plans to expand into other European cities.
The co-founders of the two firms will manage the new entity. TOG’s Olly Olsen and Charlie Green will serve as executive chairman and president respectively, with the founder of Fora, Enrico Sanna, acting as chief executive (see image, right).
Current TOG and Fora tenants include BP, GSK, Ocado, AMC, Adobe, British Fashion Council, Tortoise Media – and now Redactive, publishers of Facilitate.
Olsen said: “The strong strategic and cultural fit between our two businesses and the supportive market dynamics, as more businesses embrace flexible working, make this merger an exciting proposition.
“We have seen a clear and growing need from corporates for better-quality environments, with great amenities, beautiful design and that are easily accessible. The combination of our businesses would ensure that we are best placed to meet this growth opportunity in the UK and Europe, offering existing and potential members even greater choice.”
Employees calling the shots
Sanna explained the move as follows: “Businesses are increasingly recognising that the workplace is no longer a commodity, but rather a space that can be used to actively drive improved productivity, collaboration and the wellbeing of their teams. The combined portfolio of TOG and Fora will meet this need and evolving expectations, offering high-quality and flexible locations that are design-led, with a range of services and amenities that are conducive to enhanced employee and business performance.”
Jonathan Ratcliffe, spokesperson for Offices.co.uk, a national provider of serviced offices and flexible workspaces, says it “all boils down to value”.
“The big change with Covid is that now the employees call the shots – persuading WFH staff to come back to the office means that the standard of their workspaces needs to match or exceed the standard of their home (plus some)
IN BRIEF
Airedale Group buys Network Catering equipment installer and service company Airedale Group has acquired Halesowen-based Network Catering Engineers Ltd. Network, founded in 2000, employs more than 90 engineers and delivers maintenance services to a broad customer base of at least 90 clients across the UK.
UEL links with
Siemens to achieve Net Zero The University of East London (UEL) has partnered with Siemens to deliver net-zero carbon by 2030 at its campuses in Docklands and Stra ord. The partners will collaborate to identify opportunities to reduce overall energy use, drive the shi to renewable energy and transform its campuses, using digitalisation to not only make its urban sites net-zero carbon but also to enhance student and staff wellbeing, foster inclusivity by creating learning opportunities, and support a digital-first culture through the roll-out of intelligent technology.
Yorkshire based
CSG FM sold Insolvency practitioner SFP has finalised the sale of business and assets of CSG FM Ltd, a West Yorkshirebased FM and cleaning business. The company, formed in January 2019, entered administration on 11th April. It provided cleaning and FM services to manufacturing, distribution, logistics, corporate and public sector businesses across the Midlands and north of England.
and therefore the easy fix for any CEO in recovery mode is taking a pre-built, managed and flexible workspace which makes their staff happy.
“We are seeing many firms dropping from, say, 100 fixed desks to 25, with another 25 in a shared environment. Staff working from home may only come into the office for a few days a week; often the financial savings are half that of before Covid. Perks are a huge thing for employee happiness too, with barista coffee, staff welfare, gyms, social events and even beer taps all being standard in the larger buildings now.”
Central management advantage
Georgia Sandom, director at Office Space in Town (OSiT), told Facilitate: “Companies of all sizes, from startups to multinationals such as Currys, are shifting to serviced office space because of the flexibility it provides, but increasingly because it also allows them to fit into an ESG strategy that, like the workspace itself, is managed on their behalf.”
Sandom says environmental, social and governance (ESG) concerns “are driving demand for serviced offices, with restrictions on leasing buildings with energy ratings worse than “D” placing a premium on sustainably managed space”.
She added: “Serviced offices have a competitive advantage because their central management of utilities makes energy provision more efficient, while the controlled costs charged to occupiers mean the latter can enjoy financial peace of mind as well as a clear conscience on environmental issues. In addition, leaders in the serviced office industry have not only committed to reaching Net Zero, they have set out a roadmap of how to get there.
Holding themselves to account with the proper reporting will be absolutely vital as serviced offices strive to deliver the ESG credentials that occupiers demand.”
Ratcliffe says serviced or managed office space could account for 30% of office space within the next five years – which could be “a worry for those transitional FM companies who work with smaller tenants”. But he added that it could also offer opportunity “by making sure they are working with some of the high-growth independent serviced office providers - because their growth ambitions are huge, and they have big-money backers”.
Ratcliffe thinks “what we are seeing is an employeeled move to a more flexible workspace – this isn’t necessarily a top-down trend; many of our clients are middle management providing workspace options for themselves (signed off by their CEO) in a place they want to work”.
Cultures and needs
Andrew Mawson at consultancy Advanced Workplace Associates (AWA), does not think serviced offices will be the future for all businesses.
“Serviced offices and co-working spaces will no doubt serve the needs of small organisations and those that need high levels of flexibility to grow / shrink,” said Mawson, “but for more mature organisations that have a public face and see a need to have their own demise and make visible their own personalities and culture, we don’t think serviced offices and co-working spaces will cut it.
“We know that many large organisations will be seeking ways to monetise empty space that they no longer need in the coming years,” continued Mawson, “but subletting whole floors to single tenants may prove difficult in a conventional sense as those potential tenants themselves adopt hybrid ways of working and operate off a much smaller footprint that they would have done traditionally.
“Right now, we are working with a number of high-profile organisations with similar cultures and complementary needs that are seeking space that will provide a shared facility for a number of organisations that have something in common. We call these communities of affinity. These companies are not interested in taking conventional leases, nor are they interested in serviced offices.” The future, says Mawson, is likely to be one in with “different models suiting different organisations” and that “one size won’t fit all”.
In its first year it achieved a turnover of approximately £10 million, and a profit of more than £600,000.
Amey sells utilities division Infrastructure services and engineering company Amey has sold its utilities business to industrial private equity investor Rubicon Partners. The sale was finalised on 12 April and the business will now operate as a separate entity. Amey is now focused on three main divisions; consulting, transport infrastructure, and secure infrastructure. Avove, as the utilities business will now be known, provides water and power maintenance services to clients such as Yorkshire Water and Severn Trent. It will retain the same structure and management team as when owned by Amey, but will appoint a new managing director.
Johnson
Controls buys Powertec Sustainable buildings technology specialist Johnson Controls has acquired Readingbased Powertec Pumps Ltd. Powertec Pumps services and maintains commercial pumps across the south of England and Johnson Controls plans to integrate the company into its fire suppression and wider pumps operation. Powertec Pumps’ teams maintain and service both on-site and off-site pumping operations, and work in several sectors including fire sprinkler pump systems, pump stations, clean water booster pump systems, process pump systems, rainwater harvesting, flood relief and borehole pumps.
Q&A
Steve McGregor
Steve McGregor, Group MD at DMA Group, on the maintenance sector and the fi h industrial revolution What needs doing to improve the traditional maintenance industry? “Research from the Building Services Research and Information Association over 15 consecutive years confirms that most customers are unsatisfied with their mechanical, electircal and plumbing maintenance provider when measured against the same 10 KPIs. Now is the time for drastic change. Collectively, the property maintenance industry must let go of its traditional past and embrace smart technology to attract and retain the best talent and to deliver consistently
better customer service. How can you recruit more young We are on the cusp of an people or skilled professionals like inevitable fifth industrial engineers, into the industry? revolution, fuelled by Modernisation can help us to create A-to-Z automation and a more compelling career choice for artificial intelligence. The younger generations. They expect smart pandemic has magnified technology. Imagine spending years of that necessity. Our academic studies using an iPad or other industry must accelerate adoption of touchscreen devices only to enter an smart technology to get the basics right industry that still relies on paperwork. and to deliver well at scale. Can you imagine how demoralising that must be for new entrants? How has DMA We need to make it an turned learning attractive option. Property from its own mistakes into We are on the cusp maintenance needs to be driven by technology and be better practice? of an inevitable something to be proud of. Having been around for over 200-years, 5th Industrial Can you tell me we realise we have Revolution, specifically how been part of the problem. We, and the industry, must fuelled by A-to-Z automation and customers can be effectively educated? It’s important that act. Like everyone else, we struggled to manage complex AI. The pandemic has magnified customers recognise and embrace the fifth industrial revolution if transactional scale that necessity they want improvements. without technology. And without maintenance And let’s be clear, providers accepting their proprietary CAFM did not solve all those current limitations and failings, it won’t problems. In most cases it masked them happen. Several customers have had because the front-ends were slick and their ‘eureka moment’, but until we have pretty, whilst the fundamental areas a critical mass of ‘awakened’ customers needed improvement, and the remedial we won’t see real, enduring change in hard-yards, remained untouched. As we expectation or procurement. Customers understood those remedial needs better must challenge the staid and traditional than any software maker, we designed our procurement processes to more assertively own platform to solve those problems. drive maintenance providers towards Those problems were common, from an digital automation. Our research shows inconsistent view of statutory compliance, 77% agreeing that the FM industry is lack of consistent workflows, inconsistent ‘behind the curve’ when it comes to control over resources, parts and planning. adopting smart technology.”
IN BRIEF
Suffolk Group to trade as Vertas Suffolk Group Holdings, the wholly owned company of Suffolk County Council, has revised its por olio so that all its firms will now trade as Vertas Group. As of 1st April, Vertas Group Concertus Design and Property Consultants Limited and Opus People Solutions Limited have been taken into one leadership structure while maintaining their individual brands and identity. Ian Surtees, who has been with Ipswichbased Vertas Group since 2014, becomes group CEO. Ma hew Self, previously group director – commercial and operations at Concertus Design and Property Consultants Ltd, has been appointed managing director. Brad Sinclair is now managing director for Opus People Solutions Ltd, a er being its finance director. Duncan Johnson will continue as non-executive chairman.
Roberts named
Umbrella MD Sara Roberts has been appointed as managing director of Umbrella Training in a newly created role. Roberts will oversee operations and develop the strategic direction of the business, working with founder and CEO Adele Oxberry. Roberts has worked for a range of companies including QA, Avado Learning and Arch Apprenticeships. Roberts started her career at American Express in sales and marketing, where she spent 10 years working with hotels, restaurants and other businesses within the hospitality and travel industry.
SOCIAL VALUE
Wates Group has secured a £90 million sustainabilitylinked loan (SLL) from a syndicate of three banks led by Lloyds Bank.
Lloyds acted as the sole ESG coordinator for the SLL, which Wates will use to achieve its ESG objectives and work towards three KPIs to achieve margin discounts on the funding. HSBC and AIB also provided equal funding on the deal of £30 million each. The threeyear facility is believed to be the second-largest SLL provider in the sector. The three KPIs: 1. 35% of Wates’ top 200 suppliers must have Science Based Target Initiative (SBTi) approved targets in place by December 2024. This is linked to the company’s Scope 3 emissions, which make up around 98% of its greenhouse gas emissions. 2. Create nearly £370 million of social value over the next three years by creating jobs, supporting growth
and promoting Wates secures £90m sustainability loan healthier lifestyles within the communities it operates. 3. Boost the By Facilitate team number of women in senior leadership roles to balance representation as part of its inclusion and diversity strategy. Philip Wainwright, Wates Group’s chief financial officer, said: “Sustainability is a key element of our Guiding Framework – that’s why we launched our 2025 sustainability goals in 2020. We are continually reviewing how we can embed sustainability into what we do and we’re pleased that we have been able to identify and agree on three additional metrics with our lenders that will drive sustainability outcomes and demonstrate our commitment on Scope 3, social value and diversity.” Max Jones, relationship director in Lloyds Bank’s construction and infrastructure team, said: “Now’s not the time for firms within the built environment to rest on their laurels when it comes to creating a greener, more welcoming industry. Wates have long been a leader for sustainability in the industry – we look forward to helping them build upon that position.”
APPOINTMENT
MACE ANNOUNCES NEW CONSULT BUSINESS COO
Global consultancy firm Mace has appointed Richard Green to its newly created role of chief operating officer for its Consult business.
Green will take on leadership of consultancy practice groups, helping to grow the business’s capability and services to clients globally, in line with its 2026 business strategy. He will be responsible for driving innovation and identifying areas of investment to maintain Consult’s market competitiveness.
Green, previously managing director of the Corporate Centre of the Nuclear Decommissioning Authority (NDA), led on organisational change and supported business and service transformation in response to Covid-19. He has also held senior roles with Jacobs, Crossrail and the British Army, managing large teams to achieve successful project and programme outcomes.
Jason Mille , CEO for Mace Consult, said: “In his new role as Consult COO, Richard will be able to drive our expertise in data management and cost consultancy to ensure we deliver best in-class services and distinctive value for our clients globally. I look forward to seeing us grow from strength to strength.”
NG Bailey launches EV unit NG Bailey has launched its electric vehicle (EV) charging business unit, to meet increased demands from businesses for vehicle charging solutions.
Operations director Darren Slade will lead its facilities services arm, which offers end-to-end EV infrastructure and solutions services. The firm will offer national coverage through its delivery team, plus consultancy, feasibility study and design, commissioning and infrastructure installation, cellular and network connectivity, and maintenance and a ercare.
Mitie acquisition Mitie Group has acquired specialist telecoms tower design company P2ML for £2.1 million. Glasgow-based P2ML provides a range of engineering services within the telecommunications industry – mainly the design, construction, inspection and maintenance of telecoms towers. The deal further expands Mitie’s telecoms capabilities in the wake of last year‘s acquisition of DAEL Telecoms. P2ML carries out design, construction, inspection and maintenance services for cellular telecoms infrastructure.
Xcell Misting taken over Smart buildings company Johnson Controls has acquired Xcell Misting Ltd, a fire protection company that designs and installs fire suppression and detection systems. Johnson Controls said its clients would benefit from the firm’s experience by gaining access to the latest fire suppression technologies.
EPHFMERA
“Culture is not bean bags, free beer, or a free subscription to a meditation app… Your actions define your culture. Your culture defines your brand. People don’t leave because they don’t have free stuff, they leave because they can recognise the difference between a good culture and a bad one.”
CHRIS DONNELLY, FOUNDER OF VERB & CO-FOUNDER OF LOTTIE, OFFERS AN IMPORTANT REMINDER AS EMPLOYEES RETURN TO THE WORKPLACE
LEADERSHIP AND LEARNING COACHTAMSIN TWEDDELL REMINDS READERS TO CONSIDER ANOTHER PERSON’S PERSPECTIVE FOR BETTER WORKPLACE RELATIONSHIPS
ADAM TRANTER, WEST MIDLANDS CYCLING & WALKING COMMISSIONER, FOUNDER & CEO OF FUSION MEDIA
DAVID STEVENS, DIRECTOR OF ESTATES, FACILITIES & CAPITAL DEVELOPMENT AT EAST LONDON NHS FOUNDATION TRUST, SHARES INSIGHTS FROM THIS YEAR’S CIBSE AWARDS
BRAELYN HAMILL, SENIOR WORKPLACE STRATEGIST AT CUSHMAN & WAKEFIELD, ISSUES VALUABLE INSIGHT INTO WORKPLACE EQUALITY
GRAEME LIPSCHITZ, VP OF INNOVATION, TECH, AI AND DATA AT EDUTAINMENT PROVIDER BOXPLAY, QUESTIONS THE EFFICACY OF CORPORATE TRAINING MODELS
“Hybrid WFH is here – offices are still only 40% full while leisure activities have returned. Office occupancy will eventually flatline at about 60% once the return to office is complete (3-2 hybrid for the average employee).”
STANFORD ECONOMICS PROFESSOR NICK BLOOM MAKES PREDICTIONS ABOUT THE FUTURE OF WORK
