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Railhub Archive 1995-12-05 DoT-001 Department of Transport0
Telecom sale rings up another rail privatisation success
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       Telecom sale rings up another rail privatisation success _______________________________________________________________

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type Press release note 407
The Government rang up another rail privatisation success today as Transport Secretary, Sir George Young, announced the sale to Racal Electronics Plc of BR Telecommunications Ltd (BRT). The agreement is conditional on the approval of Racal Shareholders at an extraordinary general meeting on 21 December 1995. Believed to be the biggest non-public, non-military telecommunications operator in the country, BRT provides a nationwide fixed and mobile network for the rail industry in addition to an extensive maintenance, project engineering, design and installation service. The company, which employs about 2,800 staff, had a turnover of #174.2 million and made a profit of #17.6 million in 1994/95. Welcoming the sale, Sir George Young said: "I am delighted that BRT has now made the successful transition to the private sector. Its acquisition by Racal Electronics Plc, a highly regarded blue chip company with nationwide resources and technical expertise, is excellent news for the railway industry and confirms the continuing success of the rail privatisation programme. "Telecommunications in Britain is undergoing rapid growth and technological development, and under Racal's ownership BRT will enjoy the opportunity to share in the future, along with its customers in the railway industry." Within Racal, BRT will form a stand-alone part of the Racal Network Services Group, which provides managed telecommunications services for household names such as ICI, Zeneca, W H Smith and the National Lottery. Commenting on the acquisition, the Chairman of Racal Electronic Plc, Sir Ernest Harrison said: "This is a tremendously exciting opportunity for Racal, representing the largest ever acquisition in our core activity of voice and data communications which already accounts for over 50 per cent of the groups turnover. "We have identified transportation as a key area for strategic expansion. There is considerable growth potential for BRT in both the rail community and other related markets within the fast-moving managed telecommunications sector, where Racal has an outstanding track record." Sir George Young welcomed the proposed benefits which Racal expects the sale to bring to BRT staff and railway passengers. Racal consider that the opportunities for BRT's future growth arise from: -an increased requirement for telecommunications capacity arising from pressures to improve efficiencies as part of the railways restructuring; -the anticipated need for the railway network and signalling systems to be upgraded with new telecommunications, infrastructures, and technologies; -an increased need for communications to provide more user based information to railway passengers; and -opportunities to expand BRT's Network and Carrier Services businesses into other related markets. Sir George Young said: "The acquisition of BRT by Racal follows hard on the heels of last month's #1.8 billion sale of the rolling stock leasing companies. Moreover, the sale of a major BR signalling company yesterday to a subsidiary of BTR - one of Britain's leading industrial firms - refutes criticism that the private sector is not alive to the very real opportunities that the privatisation of the rail industry brings." Notes to editors 1. BRT's core network consists of approximately 11,000 route kilometres of trunk cable, 4,000 of which are fibre optic, and an additional 16,000 route kilometres of cable delivering information to users. Its voice network has over 72,400 extensions with 269 exchanges, while its data network has over 39,100 terminal connections. 2. With total revenues last year of #174.2 million, BRT has four strategic business units including Networks (turnover #116.8 million); Carrier Services (turnover #6.7 million); Maintenance (turnover #37.5 million); Projects and Works (turnover #13.2 million). 3. An information memorandum was issued for BRT in late May. Final bids for the company were received in late October. 4. Former British Rail businesses for which sales contracts have already been signed for transfer to the private sector include the three rolling stock leasing companies, Signalling Control (UK) Ltd, OBS (formerly On Board Services) Ltd, Railways Occupational Health Ltd, and the Ditton Timber Treatment Works. # = pounds sterling
Railhub Archive ::: 1995-12-05 DoT-001
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