In an announcement to the stock market this morning ATC Group has announced contract wins for two of its three divisions, AT Solutions and Servassure but noted that the third division, Rocom, looks set to be sold in order to reduce group debt levels.
The wins include a two year Network Services Voice Contract with Carpetright, Europe’s leading carpet and floor specialist retailer. The contract will result in significant cost consolidation and streamlining of Carpetright’s entire UK and Ireland estate of nearly 600 stores. It also represents another major client win for ATC Solutions’ retail portfolio, which includes HMV and Somerfield.
In addition, the Group’s Servassure division has won a three year voice and data estate maintenance contract with BT for Comet, the electrical goods retailer. The contract which covers over 250 stores, distribution centres and head office sites across the UK is worth in excess of £1million over the period.
Both contract wins are working capital positive and are expected to make partial contributions to the current financial year but will make full contributions in 2009 and beyond.
ATC also confirms that it has received unsolicited potential interest in a subsidiary of the Group. Since the Group’s continued priority is to reduce debt levels, the Company is exploring this interest, together with its advisers. Discussions are at a very early stage, and a further announcement will be made in the event there are material developments.
Alex Tupman, CEO commented:- “I am delighted that our recent investments have delivered these multi-million contract wins, which will help underpin the Group’s future revenues. In addition, an approach for one of our subsidiaries is currently being considered with initial discussions underway. Shareholders will be updated on this development as soon as appropriate.
The Board remains confident of the Group’s long term prospects, which are underpinned by a solid new business pipeline, and I expect to announce further new contract wins shortly.”