- BUSINESSSPECTATOR
- DECEMBER 18, 2015 2:44PM
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Services firm Broadspectrum has secured its third major contract extension for the week, with a five-year deal to continue maintenance and other services at the NSW government’s public housing stock.
The agreement extends a 13-year relationship with the NSW Land and Housing Corporation, and will be worth up to $950m over the five years, with an option to extend it a further two and take the value of the deal to $1.6 billion.
Broadspectrum said the deal was nearly double the annual revenue it had received under its previous contract.
Broadspectrum chief executive Graeme Hunt said the contract would “significantly” strengthen the company’s work in hand.
“We are very excited to extend and expand our relationship with this key government client. This enhances our reputation as an innovative provider of asset and business solutions within the social and property sectors,” he said.
Broadspectrum shares were up 1.97 per cent to $1.295 at 2.53pm (AEDT), against a benchmark rise of 0.13 per cent.
Mr Hunt said the contract would deliver on the company’s strategy of growing its portfolio in essential services.
The expanded scope of work, which begins immediately, includes delivering planned and responsive maintenance and engineering services to approximately 70,000 dwellings throughout Sydney and regional NSW.
The announcement comes after Broadspectrum announced this week its 50-50 joint venture maintaining AGL Energy’s Loy Yang A power station had been extended for five years, and would reap $200m for the JV, while another 50-50 JV, Utilita Water Solutions, won a five-year $170m deal with Queensland Urban Utilities to deliver electrical, civil and mechanical maintenance services.
Broadspectrum — previously known as Transfield Services — recently received an unsolicited $715m takeover offer from Spain’s Ferrovial after its shares fell sharply over the last year.
http://www.theaustralian.com.au/bus...t/news-story/16d6ecca97cbe0a154419b34b5dd5b7f
