The Lindsay Fox family and Linfox Armaguard: A Cost-Plus Deal Secured
The Lindsay Fox family and Linfox Armaguard have successfully secured a cost-plus deal with their major customers, primarily the four major banks. This significant development comes after Deloitte Access Economics recently recommended a regulated pricing model for Armaguard’s Cash-in-Transit services, as announced by the Australian Banking Association.
Deloitte’s Independent Pricing Mechanism Report
The final independent pricing mechanism report has been shared with Armaguard, major banks, and major retailers, marking a crucial step in ensuring the continued availability of cash services across Australia, even amidst decreasing cash usage. Last year, CBA CEO Matt Comyn acknowledged that banks had been underpaying for cash services for over a decade.
Ensuring Financial Viability and Sustainability
Armaguard had expressed concerns about the risk of going out of business if its major clients did not pay more for their services. However, an interim support package has now been replaced with a permanent solution. The proposed model will need authorization from the ACCC to support the financial viability of cash distribution nationwide, with a focus on regional and remote areas.
Collaborative Efforts for Success
All parties involved have collaborated in good faith to reach this milestone, with a commitment to ensuring the ongoing sustainability of Cash-in-Transit services. Deloitte, in line with the ACCC and the Productivity Commission, may consider imposing efficiency dividends on Armaguard to further enhance operational effectiveness.
