While Spotless’ cleaning services delivered an impressive sales hike of 35% to $434 million for the 2010/2011 year, EBIT was constrained by tight industry margins to an 11% increase to $15.4 million. Organic revenue growth of some 19% came from significant new business wins while the Cleanevent acquisition continues to be a major positive.
The company held its annual general meeting in Melbourne late last week against the backdrop of an acquisition overture by Pacific Equity Partners (PEP).
Managed services saw a sales revenue jump of 5.4% to $1088 million with Spotless being a leading provider to Public Private Partnership (PPP) contracts in Australia, securing nine new contracts, including the New Royal Children’s Hospital and the New Royal Adelaide Hospital. PPP current annual revenue is about $60 million with the managed services order book standing at $11.2 billion as at June 2011, an increase from $7.7 billion in 2010.
CEO Josef Farnik observed that the facility services’ EBIT to date is running above the prior year and ‘transformation is on track’ with the outlook of ‘less mobilisation costs’ in the first half relative to the previous year, and the expectation that Australia and New Zealand facility services will deliver substantial earning growths in the second half of 2012 financial year.