6th Feb 2007 07:02
Watermark Group PLC06 February 2007 Embargoed for release at 7.01 a.m. on 6 February 6 February 2007 Watermark Group Plc ("Watermark" or "the Company") Air Canada Contract The board of Watermark (the "Board") is pleased to announce that the Company hasagreed terms on a three year contract with Air Canada, with an annual salesvalue of approximately £18m, commencing 1 March 2007. This contract, which isexpected to be signed shortly, is to manage the global supply chain for theforecasting, sourcing, procurement and delivery of Air Canada's in-flightproducts and cabin equipment to all its stations in North and South America, theFar East and Australasia. This contract will utilise Watermark's Encompass Asset Management Programme, andis further validation of Watermark's vision of providing an outsourced solutionto airlines for goods and services within the cabin. On a stand alone basis, the programme is expected to generate only a smallpositive return over the term of the contract. However, the establishment of thecontract, and the IT systems and team that will support it, will provide aplatform to form further strategic arrangements with key clients seeking toutilise the Encompass Asset Management Programme. As such, the Board believesthat this is an exciting step toward creating a further outsourcing competencewithin Watermark and generating synergies between the Products and Servicesdivisions. The Board consequently believes that it will deliver long term valuefor shareholders. In a separate RNS announcement today, the Company has provided an update ontrading for the year ended 31 December 2006. For further information contact: Maurice Ostro/Crispin QuailWatermark Group plcTel: 0208 606 1300 Jeremy Carey/Matt RidsdaleTavistock CommunicationsTel: 0207 920 3150 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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