Universal Salvage PLC
7 February 2001
7 February 2001
UNIVERSAL SALVAGE PLC
Universal Salvage plc ('Universal'), the vehicle salvage and services group,
is pleased to announce that it has commenced three new contracts with Equity
Red Star, Saga, and Safeway plc to handle the disposal of salvage vehicles,
representing approximately 30,000 units per annum. As part of the new
agreements, Universal will be working closely with its new insurance customers
to examine ways of removing cost from the claims process for the benefit of
both parties. A key component of this will be the adoption of StatUS, the
group's on-line salvage management system, which enables more efficient
processing of vehicles, settling claims and carrying out vehicle inspections.
Salvage vehicles will be disposed of both through Universal's traditional
routes and through its newly upgraded website, www.universal-salvage.com.
The group's current salvage contract with Norwich Union ends on 31 March 2001.
This change follows the CGU merger with Norwich Union. The contract yielded
approximately 40,000 vehicles per annum albeit at reduced margins.
Martin Hynes, chief executive, commented,
'It is, of course, disappointing to part company with Norwich Union, with whom
we have worked for the last four years. While Norwich Union wished us to
consider taking on increased business, we felt unable to agree mutually
acceptable terms based on the projected volumes.
However, I am delighted to announce the three new contract wins. We have been
making pleasing and steady progress in enhancing our service levels and in
particular our new internet-based, salvage management product, StatUS, offers
our insurance customers the potential for significant cost savings as well as
other operational benefits. This investment in the group places us in a good
position to attract further new business, and we remain optimistic about our
financial prospects for the future.'
Universal Salvage plc: Martin Hynes Tel: 01234 762283
WestLB Panmure Ltd: Rupert Krefting Tel: 020 7860 3885
Biddick Associates: Katie Tzouliadis Tel: 020 7448 1000