24th Apr 2007 14:00
Britvic plc24 April 2007 Britvic plc ("Britvic") Outsourcing Proposals - 24 April 2007-------------------------------------------------------------- As a result of a review focused on its strategic goal of driving efficiency andreducing cost, Britvic has today entered into a consultation process with itsemployees on the following proposals: • the outsourcing of its secondary retail distribution network to KN Drinks Logistics • the outsourcing of its vending and chiller remanufacturing operations to Apollo Vending Services As a result of these proposals it is anticipated that up to 450 employees wouldbe transferred from Britvic to KN Drinks Logistics and Apollo VendingServices in FY08. Both proposals are subject to the employee consultationprocess, due diligence and any contract finalisation. It is currentlyanticipated that these operational changes would be implemented by October 2007. Related to these proposals, Britvic has exchanged contracts for the disposal andshort term lease back of its depot in Tamworth, the only freehold site withinthe secondary retail distribution network, at a net cash consideration of £9.0m.This compares to a NBV of £5.8m as at 15 April 2006. Over the last two years Britvic has driven a number of significant efficiencyprogrammes delivering £11m of sustainable overhead cost savings with anadditional £4m of savings identified for FY07 and £3m for FY08. The actionsdetailed in today's announcement are expected to add an incremental £5-6m inannualised savings at an operating profit level by FY09 at a one off exceptionalcost of £3-4m in FY08. The proposals would also reduce capital expenditurerequirements by £2-3m from FY08. For further information please contact: Investors: John Gibney /Jo Guano +44 (0)1245 504 330 Media: Britvic main switchboard +44 (0)1245 261 871Julian Mears +44 (0)7834 962 542 Notes to editors---------------- Britvic is one of the two leading soft drinks businesses in Great Britain. Its broad portfolio of leading brands includes established names with high brandrecognition such as Robinsons and Tango and highly successful innovations suchas J20 and Fruit Shoot. Included within the portfolio are the Pepsi and 7UPbrands, which Britvic produces, markets, sells and distributes under itsexclusive appointment from PepsiCo which runs until December 2023. This brandand product portfolio enables Britvic to target and satisfy a wide range ofconsumer demands in all major soft drinks categories, via all available routesto market. KN Drinks Logistics is a wholly owned subsidiary of Kuehne + Nagel Ltd. The Kuehne + Nagel Group is one of the world's leading logistics companies. Apollo Vending Services provides outsourced vending operations which include anational machine delivery service and a remanufacture operation. It has been thenational brand partner for Cadbury's vending operation since 1998. Cautionary note regarding forward-looking statements---------------------------------------------------- This announcement includes statements that are forward-looking in nature.Forward-looking statements involve known and unknown risks, uncertainties andother factors which may cause the actual results, performance or achievements ofthe Company to be materially different from any future results, performance orachievements expressed or implied by such forward-looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Britvic