M&S UK Contract
March 27 2003 - 2:10AM
UK Regulatory
RNS Number:2614J
Tibbett & Britten Group PLC
27 March 2003
27th March 2003
TIBBETT & BRITTEN GROUP PLC
MARKS & SPENCER UK CONTRACT
Tibbett & Britten Group plc ("TBG"), the leading UK based international contract
logistics and supply chain company, announces that its UK general merchandise
warehousing contract with Marks & Spencer plc ("M&S") will cease from 29th March
2003.
Under the terms of the contract, M&S will make a cash payment of approximately
#23 million to T&B for the assets to be transferred and will, in addition, pay
the contract termination costs.
This UK warehousing contract covers three facilities that represent less than 2%
of T&B's turnover. The cessation of this contract will not materially impact on
Group profitability in 2003 and 2004. The affected employees will be
transferred to the new logistics contractor. T&B will continue to provide other
services to M&S including its wine operations and the Joint Retail Logistics
joint venture.
John Harvey CBE, Chairman of T&B, said: "M&S have confirmed that their decision
was not based on operational performance. As M&S consolidates operations, our
proposals would have delivered significant on-going cost savings whilst
generating appropriate returns for our shareholders. We are disappointed that
M&S did not find these proposals acceptable, although we are naturally pleased
that M&S will remain a significant customer."
Enquiries:
Tibbett & Britten Group plc 020 8327 2000
Mike Arrowsmith, Chief Executive
Hudson Sandler Limited 020 7796 4133
Andrew Hayes/Jessica Rouleau
This information is provided by RNS
The company news service from the London Stock Exchange
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