Notes from the City: Sirius due to launch next stage of York Potash Project; Communisis reports solid performance; Harrogate health contract win for l

Sirius Minerals, the company behind the York Potash Project, is due to launch the next stage of works allowing access to the site.

Highway works required as part of the development ramp-up are due to commence on 30 January 2017

Site investigation works including further geotechnical studies have been underway since the end of 2016. An additional drilling rig, similar to that used during the Company’s exploration campaign, is expected on site at the end of February 2017 in order to gather more detailed information for the upcoming shaft sinking. The full site preparation phase is expected to commence on schedule in Q2 this year, as previously announced.

***

Communication services business Communisis is in a strong position this year following significant new contracts.

The business said that for the year to December 2016, its performance will be in line with expectations, having won a major contract with HMRC for all of its outbound customer communication.

In an update it said that plans are in place to go live in mid-2017.

Its brand deployment division has won a new contract with Sony Europe, for a range of customer communication services starting in October 2016 for a term of 3 years. It is managing the supply chain for marketing collateral and point-of-sale across Europe.

Communisis has also opened an office in Berlin to complement existing operations in Frankfurt and Düsseldorf.

Strong free-cash flow helped reduce net debt by approximately £9m to £30m.

***
Polymer cleaning business Xeros Technology Group said it is optimistic about 2017 after a year consolidating its growth and gaining ‘international commercial traction’.

The company has been awarded approved supplier status for Hilton hotels in the Americas, which comprises an estate of over 4,300 hotels now with access to Xeros’ cleaning technology.

Total commercial washing machine installations by the Group as at 31 December 2016 stood at 316.

In its Tanning Technologies division, the Group recently signed a heads of terms with Wollsdorf Leder Tannery in Austria for a 10-year contract to convert its entire re-tanning processes to Xeros’ technology in 2017.

Four European tanneries also committed to trials in December with two currently underway, including one with a globally recognised brand.

In Textile Technologies, Xeros has started small-scale trials.

The Group ended the year with a cash position of £29m.

Mark Nichols, chief executive of Xeros, said: “We continued to make excellent progress in the execution of our platform strategy. The endorsement of such leading organisations as Hilton and Wollsdorf further validates the benefits of adopting our polymer technology.

“We have identified textiles as the third area of focus. It is a sector which is very water and chemical intensive and therefore holds significant potential for our technology.

“We are in advanced discussions with a number of globally recognised brands as we look to accelerate the adoption of our technology. We look forward to reporting on further progress in 2017. We are confident of increasing the penetration of our chosen markets.”

***

Totally plc, a provider of out-of-hospital services, has announced a £130,000, 12-month contract with Harrogate and Rural District CCG.

The contract was awarded to its subsidiary About Health, a community-based dermatology services company and provider of Referral Management Services under contract to the NHS since 2009. Revenues for the contract are scheduled to commence later this month.

Wendy Lawrence, CEO of Totally, said, “I am pleased to be able to report another significant opportunity for About Health, whom the Group acquired in June 2016 as part of our progressive buy and build strategy. The quality of About Health’s referral management services continue to be a key differentiator in this market and underpins its success supporting NHS Clinical Commissioning Groups to improve the healthcare of their local populations.”