31st Mar 2009 07:00
31 March 2009
Innovation Group plc
Two new multi million contract wins for Innovation Group
Innovation strengthens its position in the motor services sector
Innovation Group plc (LSE: TIG.L) ("Innovation" or "the Company" or "the Group"), the leading provider of enterprise software, business process outsourcing and repair and service network management solutions to the global Property and Casualty industry today is delighted to announce two contract wins in the motor services sector.
Leading European car manufacturer selects Innovation for Accident Management in the USA
A leading European car manufacturer has selected Innovation Auto® to manage its accident management process throughout the United States. This contract, commencing in Summer 2009 is for 3 years and is expected to generate revenues of $1.5m dependent on incident volume. The contract benefits from a minimum volume commitment of approximately $600K.
The program is designed to enhance the premium service experience to customers by establishing a single point of contact for all parties, including the insurance carrier, the roadside service provider and the car rental car company throughout the complete vehicle repair process. This service will be available to any of the manufacturer's customers who have vehicles repaired at a Certified Collision Repair Centre.
Leading Fleet Management Services Company contracts with Innovation in the UK
In addition, Innovation has contracted with a leading fleet management services company which provides a complete range of funding and fleet management products across Europe. The contract, which is volume dependent, is estimated to be worth £3 million over three years, and includes a minimum volume commitment of approximately £600K per annum. The contract will see Innovation Group provide vehicle maintenance and repair services through its National Service Network (NSN) UK service network. NSN, which was acquired in June 2008, manages the largest centrally controlled network of independent maintenance and repair garages in the UK.
Since becoming part of the Group, NSN, which was loss making in 2008 has now turned into profit in the first half of 2009. This contract win will boost volumes and increase margins in the second half of the year.
These contract wins help underpin Board expectations for 2009.
Commenting on the contracts Hassan Sadiq, Chief Executive Officer of Innovation Group, said:
"We are extremely pleased to be announcing these new contracts and are delighted we are gaining market share globally. It is further proof of the attractiveness of our products and services and a mark of our growing strength in the motor services segment.
The acquisition of NSN has enabled the Group to offer a compelling proposition to our customers through the unique combination of a service and bodyshop network resulting in increased volumes from both existing and new customers."
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Enquiries:
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Innovation Group plc Hassan Sadiq, Chief Executive Officer Jane Hall, Acting Group Finance Director |
Tel: +44 (0) 1489 898300 |
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Financial Dynamics Juliet Clarke / Erwan Gouraud |
Tel: +44 (0) 20 7831 3113 |
About Innovation Group
Innovation Group plc (LSE: TIG.L) is the leading provider of enterprise software, business process outsourcing and repair and service network management solutions to the global Property and Casualty industry. Innovation provides contact centres, repair networks, process management, supply chain and technology operations, and decision support analytics, to support accident management, repair and estimation and claims management services.
Innovation has over 1,000 global clients including AXA Insurance, RSA, AAA of Northern California, LeasePlan, The Ford Motor Company, Aviva, Toyota (South Africa) and Zurich (UK). The Group processes more than 4 million claims per year with 20% direct claims cost saving achieved. Our 2,400 people are located in United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, Netherlands, Pakistan, South Africa, Spain, United States. Innovation achieved revenues of UK £143 million in the financial year ending September 2008
Innovation Auto® partners with P&C Carriers, Farm Bureau's, TPA's and Self-Insureds via a robust suite of Auto Physical Damage managed network services. Innovation Auto services are built upon a pro-active, event-driven communication model with the shop, insurer and policyholder, and ensure the highest level of customer satisfaction, cycle time improvement and estimate accuracy.
www.us.innovation-group.com
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