CLTV Cellcast Plc

TIDMCLTV

RNS Number : 2152M

Cellcast plc

27 July 2017

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

27 July 2017

Cellcast plc

("Cellcast", the "Group" or the "Company")

New supplier agreement

Cellcast plc (AIM: CLTV) announces that the Company has today entered into a new agreement with one of its core suppliers (the "Supplier").

As announced by the Company on 24 May 2017 in its annual results, the Company has been undertaking a major review of costs with a number of its key suppliers who have a commonality of interest in the sustainability of the Group's core business. Cellcast operates in the digital broadcasting and the mobile money market segments, and its key supplier contracts are made up of Telecom companies and those who supply large bandwidth services. Following a review of operations, and in conjunction with the Supplier, Cellcast has renegotiated the terms of the contract with this Supplier, covering the provision of multiplexing, distribution and transmission services to the Company.

Whilst the specific terms are subject to strict confidentiality, the new agreement (the "Agreement"), which replaces with immediate effect the previous agreement in place with the Supplier, is expected to lead to a substantial and material reduction in the annual costs payable by Cellcast in respect of the services provided to the Company under the Agreement. The Agreement is for an initial 3-year term, with a one-year break clause.

Commenting on the contract, Mike Neville, Chairman, stated: "Infrastructure and associated costs of this nature are a significant part of our cost base. We are delighted that we have been able to re-negotiate the terms of this contract, and give ourselves increased flexibility to cope with what is currently a complex and difficult market place."

For further information:

 
 Cellcast plc                              020 3376 9420 
 Mike Neville - Non-Executive Chairman 
  Craig Gardiner - Chief Executive 
  Officer 
  Emmanuelle Guicharnaud - Finance 
  Director 
 
 Allenby Capital Limited (Nominated 
  Adviser and Broker)                      0203 328 5656 
 Nick Naylor / James Reeve 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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