11th Mar 2008 07:01
Southern Bear PLC11 March 2008 Southern Bear plc Support Services Division - new contract win Southern Bear plc ("Southern Bear" or the "Company") is pleased to announce thatits wholly owned subsidiary, BGC Limited ("BGC"), has entered into a subcontract agreement (the "Agreement") with Kier Stoke Limited. In 2005, Stoke-on-Trent City Council announced its intention to hand over themaintenance of its 20,000 domestic and 500 commercial properties to a jointventure company that would partner with its own direct labour organisation. Inlate 2007, it was announced that the Kier Group plc ("Kier Group") had beensuccessful in its bid and, with Stoke-on-Trent City Council, it would form a newjoint venture company called Kier Stoke Limited. ("Kier Stoke"). Kier Stoke'scontract with Stoke-on-Trent City Council is estimated to be worth £400 millionover a ten year period. BGC is a key partner to Kier Stoke for this project. Under this Agreement, BGC will initially provide a central heating installationservice (circa 1,000 per annum) and a landlord's service and gas safetyinspection program (circa 6,000 per annum). Subject to performance, theDirectors believe that further opportunities to deliver other services, such asbathroom replacements, kitchen replacements, mini-modernisations, electricalworks and other maintenance services may be available in the near future withinthe Kier Group. The Agreement runs for an initial three year term, expiring 31 March 2011. Speaking today, Southern Bear's Chairman Jon Pither stated: "We are delighted to have secured this opportunity to build our relationshipwith Kier Group and significantly expand our support services business inStoke-on-Trent. Not only does the signing of this agreement directly provide anopportunity to grow our support services business, it also significantlyincreases our customer diversity and profile within the sector." For further information, please contact:Southern Bear plcSteven Hancock, Director Tel: +44 (0) 1782 826939 Nominated Adviser:Grant Thornton Corporate FinanceGerry Beaney Tel: +44 (0) 20 7383 5100 Nominated Broker:SVS Securities plcPeter Manfield Tel: +44 (0) 20 7638 5600 Financial PR:Bishopsgate CommunicationsJenni Herbert Tel: +44 (0) 20 7562 3355 About Southern Bear plc Southern Bear is a holding company focusing on investments in the supportservices, industrial and engineering sectors of the UK and Europe. It has fivemain operating subsidiaries namely Tarvail Limited, Tarvail Design Limited,Towerinput Distribution Limited, BGC and Phoenix Dynamics Limited. SouthernBear is actively seeking complementary acquisitions in the support services,engineering and industrial sectors with turnover of up to £10 million, theproprietors seeking an exit, but with strong second tier management, and anhistoric track record of profit. About BGC Limited BGC was acquired by Southern Bear in September 2007 for an acquisition price ofup to £6.5 million. Southern Bear paid an initial consideration of £4.25million, with a further consideration of £2.25 million being paid subject to BGCachieving certain future operating targets. BGC is a UK-based support services company targeting the social housing sector. It provides domestic gas heating and electrical installation, maintenance andafter-hours breakdown services throughout the North West, Midlands and NorthWales. About Kier Group Kier Group is a leading construction, development and service group specialisingin building and civil engineering, support services, private house building,property development and the Private Finance Initiative. Kier Group employs over9,000 people worldwide and has annual revenue in excess of £2.2bn. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kier