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CEO Update – July 2020

By 28th July 2020Uncategorised

As we are now over half-way through 2020, I would like to take a moment to reflect on the last six months and look forward to the impact we all can make in the remainder of the year.

COVID-19

This year has been a very difficult time for everyone in and outside of business as a result of Covid-19. Firstly, I would like to offer my condolences to the friends, families and colleagues of individuals in our business who have sadly passed away as a result of the Covid-19 virus. They will remain in our thoughts.

Whilst some areas of our business, such as our Cleaning and Security divisions, have not been impacted as severely, we have seen other divisions impacted significantly. However, thanks to the efforts of all colleagues, we believe we have now got through the worst period and things are slowly returning to a form of normality.

I would like to thank everyone for playing their part:
– Thank you to our colleagues who have continued to work on the front line throughout this period. The whole world now realises and appreciates how important our industry, our roles and our responsibilities are in keeping the country running. More importantly, the FM industry is now recognised as being critical in keeping the public safe.
– Thank you to our colleagues who have worked from home, we know that some of you have found it hard to work remotely, but thank you for doing so, we hope to welcome you back to the office by the 1st September, when all of our offices will be fully re-opened.
– Thank you to our colleagues who have been on furlough leave as this allowed us to access the Government’s Coronavirus Job Retention scheme, reducing our costs and helping us financially through this tough period for the business. If you are currently on furlough, your line manager will be in contact in the coming weeks to discuss your return to work.

Annual Leave

There have been changes to the 2020 holiday year. We are extending the period, lasting until 31st March 2021. This will ensure colleagues can utilise any unused annual leave up until this date. The 2021 holiday year will run for 12 months as usual.

Launching CHROMA

Our HR Director, Kelly Howell, recently announced the launch of CHROMA to drive our commitment to a diverse and inclusive workplace. Thank you for the huge number of responses and volunteers to join our LGBTQ+ network and please look out for the official launch of all 3 CHROMA networks; LGBTQ+, Race, Ethnicity & Faith and Physical & Mental health.

Find out more about the CHROMA click here.

Race at Work Charter

Words cannot describe the shock and upset we all felt about the appalling killing of George Floyd in the US. We have taken time, as a board and organisation, to reflect. We have the opportunity to implement clear actions to remove deep-rooted discrimination, that sadly, is still present in our country towards the BAME community. Racism, whether from an individual or institution, should not exist in our society. We will continue to operate our zero-tolerance approach to discrimination of any kind.

As a national organisation, built of an amazing diverse workforce, we understand the responsibility that we have to make a real difference. All lives should have infinite value but supporting our BAME community focuses the mind and reminds us that this is urgent, that we all need to actively stand up to racism, that this affects the daily lives of our BAME colleagues and their loved ones. In support to tackling racism, we have also signed the ‘Race at Work Charter’ and will continue to build on these commitments.

Find out more about the Race at Work Charter click here.

Financial performance

Our financial performance for the first quarter of this year (three months ended 31st March) was very strong, with revenue growth of 5% and profit increasing by 9% compared to the same period last year.

Our results for the second quarter have not yet been finalised but Covid-19 did cause our revenue to drop from £65m per month to a low of £40m in April (40% decrease). We expect revenue to return to pre-Covid-19 levels from September onwards.

Business Wins

Although a lot of sales opportunities have been put on hold during the last few months, we have won some fantastic new contracts during the first half of this year and we anticipate a strong second half of the year, with a number of large opportunities in the sales pipeline.

New business wins this year have included Ocado (catering), London South East Rail (cleaning), further contractual work with Morrisons (cleaning), Costain-Skanska HS2 (security) Queen Margaret University Edinburgh (technical). In addition to our contractual wins, we have refocused our business on Covid-19 products and services. Through our Atalian Servest Hygiene and Security divisions, we have seen an increase in sales, that includes innovative technology such as thermal cameras, occupancy tracking, along with PPE and hygiene cleaning products and services.

Thank you once again for everything you have done to help the business during the last few months, please stay safe and I look forward to welcoming everybody back in the near future.

Daniel Dickson
Chief Executive Officer, UK & Ireland

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