Mortice loses 18pc of UK revenue as it fails to renew major contract

27th Sep 2018 14:39

(Sharecast News) - Security and facilities management company Mortice announced on Thursday that its subsidiary Tenon FM lost a competitive bid for its existing UK contract with University College London (UCL).The AIM-traded firm had announced in its final results on 23 August that one of its largest contracts was set to expire on 31 October, and was up for renewal.It confirmed on Thursday that it lost a competitive bid to a "large multinational company" for its UK contract UCL, representing 18% of UK revenue, with effect from November.However, it said it was confident to recover that loss "soon" with various business activities currently in the pipeline.The group sait it remained focussed on cost and bidding discipline, and remained "highly active" in bidding for appropriate contracts, expecting a return to like-for-like growth from its UK operations in the medium term."The UK market is experiencing tough trading conditions," said executive chairman Manjit Rajain."The group is taking significant corrective action in order to ensure a more profitable and sustainable margin in this changing and challenging environment."