The contractor Mitie welcomes the recent Budget announcement of a new National Living Wage (NLW) in the UK, the firm says in its latest trading update before entering a close period on October 1.
According to the firm, the NLW ensures that those of its people who are affected, are better rewarded and feel more motivated; it will also improve retention rates.
Since the minimum wage was introduced in 1999, by Labour, the firm says that it’s managed the impact from its annual change as part of the normal course of business. The company is confident likewise that the NLW will not have an impact on earnings. As the NLW affects all competitors equally it creates a level playing field, the firm adds.
As for outlook, the firm says that it has a substantial order book as well as a strong pipeline of sales opportunities and positive momentum.
The company makes much of the gains that customers can make from ‘bundling’ of services, security being one. Customers include Sky, Vodafone, Rolls-Royce (in a pan-European, integrated FM contract), RWE npower, Deloitte, and an unnamed media group, which made Mitie preferred bidder for an integrated FM contract, the firm having previously provided security to the group. The expanded five year contract has an expected total value of £20m, with a further potential two year extension.