MoD contracts make Aramark's year

A batch of naval and army contract wins in the past three weeks has given Aramark's combined services division its best year, with turnover topping £25m and a total of 41 MoD contracts.

The company has won food service contracts at HMS Heron in Yeovilton, the Royal Marines Norton Manor Barracks in Taunton, Culdrose Royal Naval Air Station, the Centurion Naval Establishment at Gosport and Beachley Army Barracks in Chepstow. Together, the contracts are worth £3.5m a year in turnover.

"Aramark and Gardner Merchant vie for first place in the MoD market. We are about the same in turnover terms but we now run more sites than them," Jim Reeves, managing director of Aramark Combined Services, told Caterer.

"We've had an excellent year. Our area of operations is highly competitive and although a market retention of 40% is acceptable, we have achieved 70%," he added.

Mr Reeves predicted the market for MoD contracts would become increasingly competitive, with the forces beginning to favour large facilities management (FM) contracts for their sites rather than separate ones for each service. "All RAF sites are now going to giant FM contracts and long-term the Army will do the same," he said.