Contract cleaning sector ‘set for £150m growth’ - Palmers Solicitors

Contract cleaning sector ‘set for £150m growth’

The contract cleaning market is on course to see sales rise by more than three per cent this year, according to a new report.

The Cleaning Matters website reported on 14 April that the report, produced by MTW Research, had found the sector achieved more positive growth last year and forecast that sales were set to rise by almost £150 million by the end of 2015.

The report quoted MTW director Mark Waddy as saying: “The data strongly suggests that the contract cleaning market will return to pre-recessionary levels by early 2016.

“By 2019, forecast models indicate that total industry sales will rise by more than £700 million, underpinned by both volume and value growth.”

For the report, MTW analysed contract cleaning companies with total sales of more than £3 billion and found 40 per cent grew over the last 12 months, pointing to generally more positive trading conditions.

The report also suggests that merger and acquisition activity is likely to increase, as facilities management specialists seek to increase economies of scale.

More upbeat trading conditions may encourage cleaning sector businesses to move forward with corporate activity that had been put on hold during tougher times.

Palmers can provide commercially-minded legal advice on all aspects of corporate transactions, including acquisitions, mergers and disposals, management buyouts, management buy-ins, along with assistance with corporate finance issues. For more information, please visit our website or contact BJ Chong.