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Upstream October 2016 0 Upstream The Newsletter of Incentive FM Group Summer / Spring October 2016 Inside This Issue Business Update Contract Wins Two New Group Conference Gleneagles Charity Shoot Modern Day Slavery Acquisitions Around the Park Welcome to the October 2016 edition of the Incentive FM Group newsletter, Upstream. As you will read, it has again been a very busy and exciting time for the group. We hope you enjoy reading our news and views. Martin Athey (Incentive FM Group Company Secretary) , Jeremy Waud, Ian Adams, David Adams. M&E Services and Window Cleaning move in the M&E/Building Environmental In the busy six months since our last issue of Services sector and we now have combined Upstream we have completed both of the acqui- annual sales of just over £ 10m in this area. We sitions that we had been working on for some will in due course integrate our M&E businesses, time. On 1st June we welcomed Derby-based and bring them in line with our Incentive style of Ace Environmental Engineering Ltd into the alligned branding. Group. There is a special welcome for Ian Adams Our second recent acquisition is ARL Support who ran this business for many years with his Services, a niche window cleaning business with cousin David Adams and now takes up his pre- nationwide sales in excess of £ 3m. The com- ferred role as Commercial Director reporting into pany carries out dynamic and complex services our head of engineering, Chris Windass. Chris for customers such as Pizza Express, Zizzi, also has reponsibility for Comserve, our southern Matalan and Pets at Home. All its UK operational based M&E business which operates in a similar technical space to Ace. Ace has a great track record with sales of over £ 6m per annum. The company specialises in air conditioning, and has strong design and installation skills in addition to its maintenance services. This acquisition completes our planned fm group limited Two New Acquisitions By Jeremy Waud, Chairman at Incentive FM Group Front Row - Adam Littlejohn, Ben Steele and Jamie Wright. Back Row – Martin Reed, Jeremy Waud, Martin Athey plus the ARL legal representatives. locations are covered by ARL using its unique 62m recorded to March 2016. I am really tracking and recording software. Adam excited to record that our run rate now is Littlejohn and Ben Steele continue to run the around £ 100m sales per annum. This is the business together with their 30-strong team very target we set ourselves when we started of window cleaners reporting into Jamie the business from zero just fourteen years Wright in our cleaning division. There is a log- ago. ical synergy with our other window cleaning business, SWC, which we reported on in our Premises last issue of this magazine. Taking on a new lease for Ace at our new Derby location has given us a good northern Strategy foothold, whilst in the south we have also From a strategic point of view, we wanted to renewed our lease at Kings Langley in find new businesses in both window clean- Hertfordshire. This is the base for Comserve ing and M&E maintenance to complement and we have also integrated our entire HR our already extensive range of activities and and payroll team to the refurbished building customer service offerings. These two service under the watchful eye of our Director of HR, areas are quite specialised and tend to attract Laura Phillips. better operational margins than we experi- Our head office lease in Londons Loman ence in many of our business areas. Overall, Street has also been reviewed and we have we are delighted with the companies, the invested in further facilities and meeting staff and the new teams that have joined us room space so as to ensure that all three and who help to make up our 2,500- strong properties provide the space and operational multi service capability of facilities staff across capacity that our various teams and visiting the UK. suppliers and customers need. Overall Business Growth The two new businesses arrive with us at a time of considerable organic growth across most of our divisions. Our total sales to March 2017 are forecast at over £ 90m which is a massive leap forward from the £ Page 2 Promotion(?) to the Premier League! By Martin Reed, Managing Director at Incentive FM Group Our great business continues to grow and develop at an astounding rate. In the last twelve months we have seen not only a large amount of organic growth through exciting contract wins but we It’s important that as we get bigger we have also strengthened our keep the personal touch and personality business through the that has made Incentive FM Group who we are and to make sure we always remember acquisition of other first class this I have refreshed our company vision; companies. “To have staff who love Contract wins including Bluewater, 30 St Mary Axe, St Botolph Building, Hello working for us and clients Student, Paddington, Addleshaw Goddard who love working with us” and most recently Dollar Finance have all had a significant impact on sales turnover. I am working hard with the Group Every one of the businesses in the group is Leadership Team to ensure that we keep to growing and has been successful in its own our traditions and values and remain a right. great company to work for where people In addition to this organic growth our who work hard are treated fairly, feel they acquisition of four other companies, belong and have a bright future. Comserve, SWC, ACE and ARL have also I can promise all our staff and clients added to our month by month increase in that we will remain an open and honest sales. The acquisitions were targeted at the business where staff who deliver our serv- building, M&E and window cleaning sec- ice will be at the forefront of everything we tors. These new sister companies offer do and as ever our clients will get the great exciting growth opportunities in their own service they want and pay for. nesses like ours that offer a nimbler, per- right but also significantly strengthen the Leicester City know they are never sonal and bespoke service and most of all a Incentive FM Group. In short we can do going to be the biggest club in the country trusted contractor relationship. more things ourselves without having to but then again they probably don’t want to Living in Leicestershire I have first-hand rely on third party contractors. be. We know we will never be the biggest experience of how size doesn’t always In 2015 we turned over just under FM provider but, just like Leicester City, we count for everything. Leicester City won £50m. This year we will turn over in excess are happy to be considered champions in the Premier League through a combination of £90m with a monthly revenue figure the FM market with staff who love working of hard graft, team work, great leadership already delivering a run rate of over £100m for us and clients who love working with us. and commitment from everyone involved per annum. Double the size in just two with the club. They also decided to create years. an atmosphere for the fans that was inclu- sive and exciting. All stakeholders from the manager to the players, the backroom staff and ultimately the fans showed a ‘love’ for the club that proved unstoppable. There is no doubt that our fantastic growth is primarily down to one thing, our staff. Without them we could not generate the outstanding service platform we need to continue to expand and grow. It’s ironic Some might say turnover in excess of that the biggest challenge to our business £100m and an ability to provide any service is its own success. has put us in to the Premier League of FM alongside all of the big (and very big) boys of the industry. But we have always believed that size is not the key to making our business great. In fact, we have always said that these huge soulless corporate FM entities are fine for some organisations but more and more clients are turning to busi- Page 3 New Group Contract Wins as two corporate offices in Nottingham and a further office premises in Bicester. Our FM team will also provide dedicated reception services at the three office sites. Dollar UK had previously managed its substantial portfolio of stores and office buildings internally, however following a strategic review of their global property management services the company identi- fied us as their outsourcing partner of choice, enabling Dollar UK to concentrate on its core business of providing consumer finance whilst benefiting from an enhanced service and improved efficiencies through self-delivery and procurement leverage. Incentive FM – The Innovations Group with an interesting challenge. Angel Central makes great use of its central piazza by hosting various events through- Allied Irish Banks out the year but most notably the Summer Comserve has won a three-year contract to provide services to Allied Irish Bank at 22 sites across the UK. The contract covers both office buildings and high street branches and is designed to ensure a com- pliant and comfortable environment for Following a swift negotiation process, we both employees and customers. have been awarded a 12 month rolling Awarded by property agent McBains contract to provide total facilities manage- Cooper, we will be responsible for all heat- ment services for the Innovation Group, in ing, air conditioning and lighting equip- a deal worth £730k per annum.
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