2014 proved to be the most successful year to date for Norse Commercial Services in terms of forming new local authority Joint Venture Companies (JVC).
The company added three new JVCs in the twelve month period, together adding to the company’s annual turnover to the tune of £32 million. Norse’s turnover from these partnerships with councils around the country now accounts for around £108 million a year.
New agreements with Great Yarmouth Borough Council and Newport City Council, together with a partnership with seven Norfolk Councils for waste recycling, mean that the company now operates 14 such commercial arrangements with local authorities.
These innovative business models deliver a diverse range of services including cleaning, catering, building and grounds maintenance, caretaking, household and trade waste collection, recycling, facilities management, street cleansing, security, transport, printing and car parks.
Sales director Geoff Tucker, commented:
“With local authority budgets under ever-increasing pressure, the Norse partnership model offers them significant cost efficiencies whilst securing hard-pressed front line services.
“Over the last five years we have saved the public sector more than £70 million, protected vital services and secured thousands of jobs.”
And Norse’s growth in this market seems set to continue, with managing director Peter Hawes confidently forecasting further JVC announcements over the coming year. He said:
“Our public sector ethos combined with commercial flair is proving so attractive that we are constantly in discussion with councils looking at new ways of squaring the cost reduction/service delivery circle. We are at advanced stages of negotiation with a number of local authorities across the country and we expect to set up more partnerships in 2015.”
With these agreements usually set up for a ten-year term, along with its contractual work Norse now has a forward order book in excess of £2 billion.