- MCS Services (MSG) wins a contract with Vicinity Centres to supply security services to 13 of its shopping centres in Western Australia
- MCS is the current security provider at six of those shopping centres and the additional centres strategically expand its portfolio
- The contract has an initial three-year term with the option to extend to five and has an annual value of $4.8 million including $1.3 million per annum from the newly added centres
- On the market this afternoon, MCS is 13.3 per cent and is trading at 6.8 cents per share
MCS Services (MSG) has won a contract to supply security services to 13 shopping centres in Western Australia.
The shopping centres include Belmont Forum, DFO Perth, Galleria, Midland Gate and Rockingham Centre, and are all owned and managed by Vicinity Centres.
Notably, MCS is already the security provider at six of those shopping centres. Its services include mobile patrols and response vehicle services as well as a vast range of electronic security services.
The initial contract term of the shopping centres is for three years from October 1, with an option to extend the contract for a further two years.
The annual core value of the contract is $4.8 million per annum, including $1.3 million per annum from the seven newly added centres.
From the contract, MCS will employ up to 20 staff to service its expanded portfolio.
MCS expects about $5 million to its income in the first 12 months and around $26.5 million if the contract option period is used to extend the contract to five years.
CEO Paul Simmons commented on the contract win.
“The awarding of this contract is testament to the professionalism of the company and the high regard that the centre operator has for MCS security and its staff,” he said.
“The winning of the company’s entire Western Australian portfolio is a brilliant result. We intend to exceed the clients’ expectations.”
On the market this afternoon, MCS was up 13.3 per cent and to trade at 6.8 cents per share at 3:01 pm AEDT.