Smartgroup wins government contract

Company News

Smartgroup Corporation Limited (ASX:SIQ) says it has won approval from the NSW government and will become one of two providers of fleet management/administration service providers that NSW government departments must choose from. 
The three year contract is set to go live on July 1 this year and therefore will not contribute to 2016 earnings. 
The contract is part of a new government initiative to drive down fleet costs and free up $1 billion in capital as the fleet of more than 22,000 vehicles is wound down. 
Smartgroup reported a net profit of $20.20 million for the six months to end of December 2015.