If it performs up to scratch, Mitie expects the extended contract to generate revenues of approximately £170m a year through the end of 2024.
Mitie has been delivering integrated facilities management (IFM) services to Lloyds since 2012. The extended contract is being described as a step change from the traditional input-based service model, to an output-based model, where the payments received by Mitie are determined by the outcomes delivered.
Services include engineering, security, cleaning, catering and data centre services across Lloyds Banking Group’s nationwide branch network and office estate.
Mitie chief executive Phil Bentley said: "I'm delighted that we have agreed to extend our contract with LBG, our largest client, until 2024 and that we have done so under a breakthrough 'payment by results' structure which will ensure that all LBG's branches and facilities are maintained to the very highest levels.