Update on Managed Services Contract Wins
16 December, 2011
At the time of our Interim Results announcement on 30 August 2011 and again, at our Interim Management Statement on 14 October 2011, we referred to a substantial new business pipeline for our Managed Services business, predominantly in the UK. We are pleased to announce that the majority of these prospects have now reached a satisfactory conclusion. When fully operational, these Managed Services contracts will deliver cumulative revenue of approximately £60 million per annum and may lead to additional revenues from services projects and product pull through. The contractual revenue will grow from now, reaching the full run rate by the second half of 2012, with the majority of these contracts lasting for five years, when fully operational.
There are six material Managed Services contracts that we have won across a number of industry sectors, including both domestic and multinational customers. These contracts include a desktop outsource with a large UK retailer, a desktop outsource with a major international bank in the UK, a global client support contract, including helpdesk, with a leading pharmaceutical company, another global client support contract with a global manufacturer with a head office in the UK, a pan European desk-side services contract with a global industrial company and a comprehensive infrastructure outsource with a UK mutual insurer.
These Managed Services contract wins, together with others secured in France and Germany, clearly demonstrate Computacenter's ability to deliver cost effective and robust outsourced solutions for customers and help to underpin the Board's expectations for 2012 and beyond. The wins announced today however, will make little contribution to 2011. While much remains to be done in the critical last weeks of the year, the business remains on track for the Board's 2011 expectations.
Our next scheduled trading update will be the pre-close briefing, scheduled for 12 January, 2012.
Mike Norris, Chief Executive 01707 631601
Tony Conophy, Finance Director 01707 631515
Tessa Freeman, PR Manager 01707 631514
Tulchan Communications 020 7353 4200
James Macey White