BES registers improvement across all performance dimensions

BES includes organisations involved in facilities management, real estate management, security, catering and waste management. The sector’s 2025 index score reached 114 (normalised to the base year of FY19 = 100), marking a 4-point year-over-year improvement. This gain was broad-based across multiple dimensions, with growth being the key contributor.

Built environment services sector performance, by dimension, is as follows: 

• Growth: Waste management companies led revenue growth, fuelled by strong organic expansion and strategic acquisitions. Security providers sustained their growth momentum, driven by increasing demand for digitally enabled services.  
• Profitability: Margins remained broadly stable compared to the previous year, as firms implemented a range of cost-control measures to mitigate inflationary pressures. These initiatives include process standardisation, optimising headcount in non-core functions, and divestment of underperforming businesses. 
• Productivity: Accelerated pace of technology adoption across the sector supported productivity gains, with revenue per employee improving despite an overall headcount growth. Firms are increasingly leveraging solutions such as AI, robotics, automation, and Internet of Things (IoT) to streamline operations and enhance internal efficiency. 
• Cash Flow: Liquidity ratios showed moderate improvement, reflecting a cautious approach to spending and strategic reinvestment of rising income streams. Looking ahead, firms are focused on increasing their share of recurring revenue through subscription-based services to further strengthen cash flow stability.