Synstar issues trading statement and reports £200 million contract win

Synstar plc has issued a statement to the London stock exchange, highlighting the success of most of its European businesses, but flagging-up problems at the company’s French business. This is under-performing and is the subject of an operational review. Synstar warned that its end of year results will be ‘at the low end’ of market expectations.

The trading statement is as follows:
“The second half of the financial year has been characterised by good profit growth in the company's core UK operations. The majority of Synstar's European businesses have performed in line with our expectations, with the exception of France. Our operations in Holland have been performing well and our Spanish operation has made significant progress in terms of contract wins on which we expect to build next year. Our businesses in Belgium and Germany have performed in line with our expectations

"Our operations in France - where, as highlighted in our interim results, our business is under performing - are the subject of a further operational review and Synstar will report on the outcome of this review at the time of its preliminary results in early December 2003.

"Cash generation for the year is expected to be strong, adding to the £19.2 million in net cash reported as at 31 March 2003.

"Synstar expects to be able to report a small year-on-year increase in both
full-year operating profit and earnings. However, the preliminary results for the year ended 30 September 2003 are expected to be around the low end of market expectations.”

£200 million Fujitsu Services contract signed
Synstar also announced that it has won a £200 million seven-year contract from Fujitsu Services. Synstar will be providing Fujitsu with a logistics service to support the maintenance contracts of Fujitsu's operations in the UK and mainland Europe. The arrangement encompasses the delivery of computer parts, and the associated capital purchases, strategic planning, bid support, warehousing and distribution.

www.synstar.com

•Date: 29th September 2003 •Region: UK/W.Europe •Type: Article •Topic: BC markets
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