6 Jan 2009 07:01
06 January 2009
SPIRITEL PLC
("SpiriTel" or "the Company")
CONTRACT WIN
SPIRITEL WINS PRIVATE VOICE NETWORK CONTRACT WITH
MAJOR INTERNATIONAL HOTEL GROUP, INCREASES RECURRING REVENUE
SpiriTel Plc, (AIM:STP), the business communications service provider, is pleased to announce that it has won a major private voice network contract with a leading international hotel group. The two year deal, expected to generate £600,000 of revenue, is a significant cross selling success for SpiriTel who will replace BT as the provider of the customer's private UK voice service. In addition, the customer has renewed a three-year maintenance agreement with the Company, which is expected to generate over £2 million of revenue.
This contract win is further evidence of the successful delivery of SpiriTel's "acquire, integrate and grow" strategy, with organic growth being driven from cross-selling the Group's expanded product range covering fixed, mobile, data and networking services. The contract brings the total of cross-sales orders to over £2 million since the April 2008 year end. SpiriTel is also in negotiations to provide an additional, UK-wide voice replacement service covering all the customer's sites.
Commenting on the new contract win and renewal, Alastair Mills, CEO of SpiriTel said: "Following the renewal of their maintenance contract, we were delighted to be awarded a major contract to replace a BT service for this customer, one of our existing global hotel customers. This is another significant cross-sell for the Group, delivering on one of our key strategic objectives. In addition, the deals increase the level of earnings visibility and cash generation in the Group.
"We are operating in a particularly challenging economic environment. However, we expect this to create ongoing opportunities for SpiriTel as customers assess cost saving opportunities more closely. We have a track record of providing cost effective solutions that enhance productivity for customers and, with our expanded product portfolio, we can now provide the full range of converged services that our customers are seeking."
For further information please visit www.spiritelplc.com or contact:
| SpiriTel plc | Tavistock Communications | FinnCap |
| Alastair Mills | Simon Hudson | Geoff Nash |
| Chief Executive | Duncan McCormick | |
| Tel: 020 7160 0100 | Tel: 020 7920 3150 | Tel. 020 7600 1658 |
Notes to Editors
SpiriTel is a business communications group which is taking advantage of the opportunities created by rapidly changing telecoms markets in the UK as the migration to Internet Protocol (IP) based services accelerates. The Group is a consolidator of the highly fragmented UK telecoms reseller market and is building a substantial customer base and scale through selective earnings-enhancing acquisitions. We are organised into two divisions, SpiriTel Technologies - focused on our infrastructure and IP products and services - and SpiriTel Business, which provides our fully integrated range of voice and data services direct to business customers.
Today, the Group offers a broad range of voice and data communications products and services to a customer base of small and medium sized enterprises and an increasing number of larger national and international organisations. We are a recognised leader in the provision of new, but proven, Voice over IP (VoIP) solutions that are firmly based on the old-fashioned service values, which run throughout the Group.