RWE npower has renewed its integrated services contract with facilities management company Mitie for three years, with an option for a further two-year extension.
News of the multi-million pound deal comes on the back of a difficult year for the FTSE 250 outsourcer which issued a profits warning in May citing 'price pressures' in its homecare and social housing businesses.
In June the support services giant also faced allegations from the BBC and Corporate Watch that it had failed to pay workers at its homecare subsidiary, MiHomecare, the UK National Minimum Wage - leading to calls for an investigation by Her Majesty's Revenue and Customs (HMRC).
Under the renewed contract 300 Mitie staff will continue to provide a portfolio of integrated facilities management (FM) services that includes cleaning, waste management, security, space planning and engineering across RWE npower's UK portfolio of office buildings and power stations (RWE npower's parent company, RWE, is one of the largest power generation companies in Europe and supplies more than 10 per cent of electricity consumed in the United Kingdom).
Commenting, Phil Holland, managing director of Mitie's Integrated FM business, said:
"We are delighted to be extending our relationship with RWE npower and are passionate about delivering a first-class FM service for them. Our role is to be RWE npower's long-term strategic workplace partner."
In recent months Mitie shares have recovered from a 12-month low of 263.90 pence and remained almost unchanged today at 312.30 pence following publication of the news.
