Red Star loses big dea
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• Red Star has lost a multi-million-pound UK distribution contract with US parcels company Airborne Express to Panic Link.
A spokesman for the British Rail parcel carrier confirms that it is about to lose the business. "Apparently Airborne Express was happy with our quality, but got a better offer on price." he says.
Panic Link director Ernie Lindsay says his Leics-based company will take over the contract next week.
He adds that the new deal with Airborne Express will substantially increase Panic Link's turnover, which stands at some 5m. "In the long term, we are expecting this to be worth about £3m to £.4m," he says.
Panic Link has spent £1.5m on new vehicles and equipment to service the contract.
From next week the company will be linked with Airborne Express's global satellite tracking system, Focus, which Linday says will allow it to trace its parcels anywhere in the world.
The three new vehicles taken on for the work are two Leyland-Daf 400s and a Renault 50-Series van, with an option to buy a further five. The remainder of Panic Link's investment has gone into its own national computer network, which is due to come on line on 1 October.
Panic Link is due to go ahead with its employee share offer in September. The company says it will not be charging a premium on the shares, and that any money raised will amount to an insignificant percentage of the investment we are making" in new business.
Linday says Panic Link has a long-term plan to invest £18m in a new hub in Leicestershire, "but that's well in the future", he adds.