Extension and expansion of a key public sector framework contract to deliver sustainable savings through the aggregation of volumes
office2office plc ("office2office" or the "Group"), the managed procurement and business critical services group, is pleased to announce through its Banner Business Services brand, the extension of its key supply framework with HMRC (the "Framework") for at least 12 months. For a number of years the Group has been working alongside HMRC to support its collaborative and progressive efficiencies programme to deliver significant savings in procurement costs.
The Framework is also used by a number of other Government departments which collaborate with HMRC rather than establish their own supply arrangements.
In addition to the supply of essential office products, the Framework provides compliant access to office2office's unique Closed Loop service. This involves the secure shredding of a customer's waste paper, which is then processed by a manufacturing partner to produce 100% recycled photocopier paper. The paper is then sold back to the customer - closing the loop. Closed Loop provides significant commercial benefits and cost savings benefits, as well as meeting the Government's sustainability agenda.
We have, for some time, been engaged with senior public sector managers to help deliver procurement savings targets. We believe that this extension to the Framework, along with the expansion of our Closed Loop service, provides an effective method to deliver real savings to our public sector customers. Our trading volumes are expected to increase as further departments have indicated they will also join the Framework. The Board is confident that, following implementation, the volume increases associated with this Framework will, in time, compensate for the overall softening in underlying public sector sales and the consequential margin erosion reported in our recent trading update.
David Thomas, Commercial Director at HM Revenue & Customs, said: "The Government set a clear challenge to deliver quick wins as part of the pressing and immediate need to reduce the public sector deficit. Banner has been proactive and played an integral part in supporting this and we are now challenging them to replicate this across our collaborative partners.
"This delivers immediate and vital savings through demand management and the aggregation of volumes, allowing the Government time to establish the declared policy that will encompass the centralised procurement of office products and Closed Loop. We believe this allows the market time to adapt to our future needs."
Simon Moate, Chief Executive of office2office, commented: "We recognise that, with our track record and transparent approach, we can both support the Government's deficit reduction plan and positively benefit our business. I am delighted we have been given this vote of confidence and look forward to building on the results we have delivered to date."
office2office plc
Simon Moate, Chief Executive
Mark Cunningham, Finance Director
Tel: 01603 691102
www.office2office.co.uk
Rawlings Financial PR Limited
Catriona Valentine
Tel: 01653 618016
www.rawlingsfinancial.co.uk