VAN Vanco

RNS Number:1510H
Vanco PLC
07 November 2007



Vanco - Interim Management Statement


Vanco plc, the global Virtual Network Operator (VNO), today publishes its
Interim Management Statement as required by the revised Listing Authority
Disclosure and Transparency rules. This statement relates to the period from 1
August 2007 to 6 November 2007.





Current Trading



Trading in the period has been in line with management's expectations. Since 31
July 2007, new contracts with a value of #26.8 million have been signed with new
and existing customers (#24.4 million in the quarter to 31 October 2007 compared
to #8.1 million in the quarter to 31 October 2006). This includes deals with
Royal Vopak, SigmaKalon and DTZ Holdings Plc.



In the quarter we won a five year contract with Royal Vopak, the world's largest
independent tank terminal operator, for a WAN covering 83 sites in 28 countries.
We also won an incremental four year "Consolidated Communication" contract worth
more than Euro10 million with an existing data network customer, SigmaKalon. They
selected Vanco to manage the fixed, mobile voice and PBX services for their
converged global voice estate. The converged network covers approximately 400
sites across more than 16 countries globally. This contract win serves as an
excellent example of how Vanco can continue to leverage the significant
opportunity in Consolidated Communication services out of its traditional data
networking customers.



Subsequent to the quarter end, we also won a 45 month #2.5 million contract with
DTZ Holdings Plc, a leading global property management company, for a scaleable
global WAN solution covering an initial 35 sites in Europe and Asia.



We continue to benefit from having a substantial base of contracted revenue ("
TCV") amounting to #421 million as at 31 October 2007. A net #9.8 million of TCV
was consumed in the quarter to 31 October 2007 compared to net consumption of
#16.2 million in the equivalent quarter last year. While the third quarter is
traditionally a weak quarter interrupted by significant holiday periods, this
outturn represents a significant performance, ahead of last year's equivalent
quarter, and in line with management's expectations.



Average Net Debt



Cash generation remains a key metric of the Company and we highlighted in our
Interim Results statement that the inherent volatility surrounding cash flows,
associated with the timing and structure of contracted deals, makes average net
debt a better metric for following the underlying cash performance of the
business.



Although the early part of the second half is generally a weak period for new
contracts and associated cash inflows, the average net debt for the period 1
August 2007 to 31 October 2007 was just #70 million. This is only #4 million
more than the average net debt for the first half.



Outlook



The markets in which we operate remain buoyant and we believe that many
opportunities exist to extend and develop our customer base. We have not
experienced any change to the market environment in the light of the recent
global credit squeeze. We remain committed to delivering the best possible
service to our customers and to developing our business via direct sales to
enterprise customers and in collaboration with our channel partners. We remain
confident that the trading performance for the year ending 31 January 2008 will
be in line with expectations and that the longer term prospects for the business
remain encouraging.



For further information please contact:



Vanco plc



Peter Johnston, Group Finance Director

T. +44 (0) 20 8636 1700



Morten Singleton, Director of Corporate Communications

T. +44 (0) 20 8636 6529

morten.singleton@vanco.co.uk



Katie Tzouliadis, Biddicks

T. +44 (0) 20 7448 1000






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IMSFGMGMNVMGNZM

Vanco (LSE:VAN)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Vanco (LSE:VAN)
Historical Stock Chart
Von Jun 2023 bis Jun 2024