United Utilities boosted by M&S deal

United Utilities today said an expansion of the home shopping business of Marks & Spencer will deliver a £35m (€52m) revenues boost to its outsourcing arm.

United revealed its Vertex subsidiary has clinched a new five-year deal to handle calls, orders and billing on behalf of the high street retailer.

It builds on an existing contract in place since 2001 and will help M&S cope with greater demand driven by new product ranges introduced to its catalogue wing.

United specialises in treating and supplying water to almost three million homes in the north west of England, but also provides customer services to a host of other firms.

The group was formed in 1996 from the merger of north west England’s water and electricity companies – making it the UK’s first multi-utility group.

Just under half of its 14,000 workforce are employed by Vertex, which has bases in 30 locations around the UK including Liverpool, Manchester, Edinburgh and Whitehaven in Cumbria.

Vertex, which has overseas operations in Canada and India, handles more than 204 million customer contacts a year for companies in sectors ranging from retail to power supply.

Current deals include the management of pay-as-you-go contracts for mobile phone group Orange and a ten-year agreement worth £280m (€415m) with Westminster City Council to handle enquiries of local residents.

Nigel Wood, retail operations manager at M&S, said: “Vertex can assist us by using its expertise to help us gain an even greater understanding of our customers and their needs.”

Prospects of further business were bright as Mr Wood said Vertex would be considered for any customer services work outsourced by the retailer in future.

United chief executive John Roberts said: “This contract demonstrates further how Vertex is able to grow by securing new work from its existing clients, as well as by winning new customers.”

Details of the contract come just just days before United Utilities, based in Warrington, Cheshire, is due to announce its results for the year to March 31.

Analysts expect the group to unveil pre-tax profits of £344m (€510m) on Thursday, against £330m (€489m) a year earlier. Annual revenues are expected to top £2bn (€2.96bn) for the first time.