VAN Vanco

RNS Number:2511Y
Vanco PLC
13 June 2007

Vanco PLC

13 June 2007



Vanco wins new business with a Total Contract Value (TCV) of #9.7 million



Vanco, the pioneering global Virtual Network Operator (VNO), announces it has
signed a series of contracts with enterprise customers around the world, worth a
total contract value of #9.7 million. The most significant of these is with a
global packaging group, the global leader in metal packaging technology, which
includes the design, implementation and management of its EMEA-region Wide Area
Network. The five-year agreement, which includes application performance
management, managed remote access services and managed security services, is
worth over #6.2 million.



These deals take the total contract value signed by Vanco since 1 February 2007
to #89.5 million. Of this, it is estimated that around #15.6 million of revenue
is recognisable in the year ending 31 January 2008, and around #12.6 million
will be received in cash before 31 January 2008. The revenue that is estimated
to be recognisable represents 32 per cent of the new business revenue that needs
to be recognised this financial year in order to achieve the consensus revenue
expectation for the year. This is significantly ahead of the position at the
same point in previous financial years. This also excludes the full effect of
any additions or changes to these networks which would be expected and, in
addition, these statistics exclude the effect of moves, adds and changes (MACs)
with existing customers.



The current position is that the ratio of recognisable revenue in the year
ending 31 January 2008 to the total contract value signed in the year to date is
17% compared with 14% as at the announcement on 3 May 2007 (when it was
estimated that around #11.3 million of revenue would be recognised on a total
contract value signed by Vanco of #80 million). The increase in ratio is due to
the profile of the new contracts and a re-assessment of the amount of work that
we expect to be done prior to 31 January 2008 on new contracts signed during
this financial year.



We expect the contractual profile of the cash payments to work done on the deals
signed in the year to date to contribute to long term debtor growth being at a
lower rate than in the year ended 31 January 2007. This is in line with our
expectation that the business will be Free Cash Flow neutral to slightly
positive in the year ending 31 January 2008.



Allen Timpany, CEO Vanco plc, commented,



"This continues our strong start to the year. We continue to be confident about
achieving the full year expectations."



For further information please contact:



Vanco plc



Simon Hargreaves, Managing Director, Vanco Solutions & Group Finance Director

T. +44 (0) 208 6361700



Michael Piddock, Marketing Manager

T. +44 (0) 208 6361721

michael.piddock@vanco.co.uk



Katie Tzouliadis, Biddicks

T. +44 (0) 207 4481000




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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