Synstar PLC
08 April 2004
8 April 2004
Extension to logistics agreement for Fujitsu Services
The Board of Synstar plc ('Synstar' or 'the Group') is pleased to announce that
it has signed a new supplementary contract to provide logistics services for
Fujitsu Services ('Fujitsu').
As announced on 29 September 2003, the primary £200 million contract will begin
in April 2005.
Fujitsu and Logicom, its incumbent logistics provider, have now decided to
outsource the last year of their existing contract to Synstar from 1 May 2004.
This new supplementary contract will have a positive impact on Group revenues in
the second half of the current financial year and the year ending 30 September
2005 and will bring forward of start up costs relating to the main £200 million
contract with Fujitsu. Accordingly, whilst it is not expected to have a material
effect on Group profits in the second half of the current financial year, it
will increase Synstar's profits and earnings in the following financial year.
Synstar CEO, Steve Vaughan, said:
'We are delighted to have been invited to begin work with Fujitsu a year ahead
of initial expectations and are pleased that we will start the main contract
with Fujitsu in April 2005 with a year's operational experience and delivery.
The agreement helps Synstar with the start-up project, provides greater
certainty for Logicom's staff and suppliers, and improved dependability for
Fujitsu's service levels.
As we previously stated, the main contract is the largest deal Synstar has ever
won and provides us the with the foundation to build one of the most significant
IT services-based logistics operations in Europe.'
Steve Vaughan / Stephen Gleadle
Synstar Plc Tel: 01344 662700
Edward Bridges / James Melville-Ross / Juliet Clarke
Financial Dynamics Tel: 020 7831 3113
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