Millennium on track, says CEO

Millennium boss Mark Baldwin says company remains on track to delivering its full year revenue and earnings expectations.

Millennium Services Group CEO Mark Baldwin says the company is on track to deliver its full-year revenue and earnings expectations, following the release of its interim results for the six months ended 31 December 2016.

Millennium Services Group's CEO Mark Baldwin
Millennium Services Group’s CEO Mark Baldwin

Millennium’s FY17 interim results show a 62 per cent growth in pro-forma revenue and 73 per cent growth in pro-forma EBITDA, whilst maintaining strong gross margins.

The company said it experienced robust revenue and earnings momentum during the half, with pro-forma revenue of $123.7 million, up 62 per cent on prior corresponding period (PCP) and pro-forma EBITDA of $9.0 million, up 73 per cent on PCP.

Millennium also maintained a solid financial position, with net debt of $22.7 million as at 31 December 2016.

[quote]“Our strong interim 2017 result builds on the momentum that we established in the 2016 financial year, reflecting good progress towards our stated strategy to build a high-quality cleaning, security and facilities maintenance services business in Australia and New Zealand,” said Baldwin.[/quote]

Airlite acquisition

Baldwin said the acquisition of Perth-based cleaning and services provider Airlite, in November 2016 has helped Millennium consolidate its national footprint.

[quote]“The transformational acquisition of Airlite during the half delivered on our strategy to complete our national footprint. This has put the foundations in place for Millennium to leverage its national presence, build meaningful scale, develop a broader service offering and strengthen its competitive position going forward.[/quote]

“Over the half, Millennium generated strong growth in both revenue and earnings, boosted by the contribution from Airlite. We also delivered solid organic growth, as we secured major new contract wins and portfolio renewals. Gross margins also remained strong, underscoring our high-quality customer value proposition.”

New and renewed contracts

During the half, Millennium was awarded several new and renewed contracts, including:

  • Scentre Group – renewal of cleaning contract at Westfield Doncaster; expansion of scope to include security services at Westfield Geelong, Westfield Airport West and Westfield Plenty Valley; and new cleaning contracts at Westfield Newmarket and Westfield St Lukes in New Zealand
  • Vicinity Centres – renewal of several cleaning contracts in Victoria, New South Wales and Queensland
  • Renewal of major cleaning contracts in Queensland;
  • New cleaning contracts in Canberra, South Australia and New South Wales

Security division

Millennium’s board has a stated strategic imperative to grow the security division to circa 30 per cent of total group earnings.

The enhanced security division will be led by Craig Hanley, who commenced as chief operating officer of Millennium on 1 February 2017.

“Our first half result, together with the company’s bias of earnings towards the second half, demonstrates that we are on track to deliver on our full year revenue and earnings expectations,” said Baldwin.

New technology

In addition to “rapidly” growing Millenium’s security division, Baldwin said the company will also prioritise innovation and technology.

Baldwin announced during Millennium’s results presentation that the cleaning and services group has secured preferential supply of Avidbot Neo Robotic Floor Scrubbers in Australia.

The AvidBots will be deployed across Millennium’s client base from April this year.

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