2 Jun 2011 07:00
FOR IMMEDIATE RELEASE
2 June 2011
Managed Support Services plc
("MSS" or the "Group")
Contract Gain, Trading Update
The Board of MSS is pleased to confirm that terms have been agreed in respect of a substantial contract extension with an existing key customer generating additional contracted, recurring revenues of approximately £700,000 per annum for three years. Delivery is expected to commence in June 2011.
The Group continues to pursue an encouraging range of potential contracts of a similar size and is forecasting to increase the overall value of the contract book modestly this year, net of contract losses.
The results for the year ended 31 March 2011 are expected to be announced in early July. As previously indicated, these results reflect the lower level of discretionary customer spend in the last quarter and the cost of rectifying failures by operational management, which led to a short term reduction in customer service and a consequential write off of Work In Progress. The Board dismissed the relevant senior management for negligible cost and is pleased to report that the upgraded team is performing well.
Trading in the first quarter of this financial year has seen a weak start from the Group units dependent on capital expenditure by customers, coupled with low utilisation rates in April. Visibility and activity levels for the second quarter appear to be improving.
The Group continues to concentrate on the development of recurring revenues from both Building Services and Environmental Compliance to further dilute the Group's exposure to the more volatile, capital related revenues that arise within our customer base.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Managed Support Services plc: | |
Simon Beart, Chief Executive Piers Wilson, Finance Director | 07710 444370 01483 735703 |
Cenkos Securities plc: | |
Nick Wells / Stephen Keys | 020 7397 8900 |
Buchanan Communications: | |
Richard Darby / Nicola Cronk / Helen Chan | 020 7466 5000 |
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Notes to editors
Managed Support Services plc is a leading supplier of Environmental Compliance and technical Building Services. The Group provides a broad range of Environmental Compliance services and HVAC building maintenance services for commercial properties. MSS operates in a range of diverse markets with customers managing or owning commercial property, hotels and retail buildings. Further information is obtainable from www.mssplc.com.
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