19th May 2008 07:00
FOR IMMEDIATE RELEASE
19th May 2008
THE DAVIS SERVICE GROUP PLC
"Contract to provide surgical decontamination services for
North West London cluster signed"
The Board of The Davis Service Group Plc ("Davis" or "The Group") is pleased to announce that financial close has been achieved on a 15 year contract for provision of surgical decontamination services for the North West London cluster.
Capital expenditure on building the new facilities for this contract will begin in the second half of 2008 and operations are expected to commence under this contract in the first half of 2009. (See note 1). This is the second contract Davis has signed under the National Decontamination Programme.
The Group continues to be involved in the bidding process for a number of additional contracts, which are at various stages of the tendering process. Further updates will be released, as and when appropriate.
Roger Dye, Chief Executive of Davis, commented:
"We are delighted to have won this second contract under the National Decontamination Programme following the acquisition of our sterile medical consumables and decontamination businesses in June 2007. We continue to build on our existing strengths in UK healthcare".
For further information contact:
|
Davis Service Group |
Financial Dynamics |
|
Roger Dye, Chief Executive |
Richard Mountain |
|
Kevin Quinn, Finance Director |
Harriet Keen |
|
Telephone 020 7259 6663 |
Telephone 020 7269 7121 |
Note:
|
1 |
Davis announced on 12 June 2007 the acquisition of the sterile medical consumables and surgical decontamination businesses of InHealth Group for £43 million with further cash consideration of up to £22.5 million dependent on future contract awards under the National Decontamination Programme ("NDP"). Typically, contracts awarded under the NDP are expected to have a life of at least 12 years, with the potential for extension, and generate annual revenues of approximately £7 million within three years of commencing operations. Each contract will require an upfront investment to build additional plant capacity, which typically could amount to approximately £8 million but will vary depending on the size and complexity of the contract. |
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