Millennium continues major turnaround with new $41m contract

Cleaning services provider Millennium Services (ASX: MIL) has advanced its New Zealand operations notably, securing a 5-year contract valued at A$41.3 million to provide cleaning services across five NZ shopping centres. 

The contract comprises of new work across 3 shopping centres, and an extension of terms across two others for the repeat client, an ASX-listed shopping centre operator. 

“Over the past years Millennium has forged a strong relationship with this valued client and we are proud to partner with them as they continue to grow and deliver exceptional customer experiences to the New Zealand market,” said Millennium CEO, Darren Boyd. 

“This new contact demonstrates our client’s confidence in Millennium’s ability to quickly mobilise a strong, professional team that delivers quality outcomes and reflects our shared long-term commitment to providing excellent service delivery.”  

The size of the contract is notable with Millennium currently trading on the ASX with a market cap of approximately $12m, having reported FY19 revenues of $294.7m from their integrated services to 1,044 sites and security services to 215 sites. 

The financial performance of the Group has been impaired due to one-off costs associated with acquisitions but has reported to be in talks with ANZ for refinancing of debt facilities which were inherited by the new Board in October 2018, coinciding with Boyd’s appointment in January 2019.

The new appointment netted a significant $4.9m turnaround in EBITDA with Millennium reporting a 1H19 loss of $2.4m before $2.5m earnings in 2H19. 

“Millennium continues to reset and focus on the quality of services to our clients while driving sustainable growth for our shareholders,” said Boyd. 

Following news of the new contract being awarded, shares in MIL rose 20% to $0.33.