£1bn online tax deal lifts Fujitsu

THE UK Government has awarded a contract worth close to £1bn to Japanese computer giant Fujitsu to enable people to file some of their tax returns online.

A spokesman for the group confirmed the award of the £929m deal to reporters, but declined to give more details on the specifics of the new system, or how long the contract would last.

The mammoth deal, which was first reported in the Japanese Press, lifted the company's shares almost 7% to 618 yen (£3.30).

The win will be a much-needed boost for Fujitsu, which last month had its credit rating cut to junk status by agency Standard & Poor's. S&P cited Fujitsu's deteriorating earnings for the move.

The British deal comes just one day after Fujitsu said it had appointed a new managing director - John Wheeler - of its UK commercial business.

Fujitsu has been steadily winning orders this year as it recovers from a series of setbacks that led it to cut jobs and slash costs.

In the summer it won an order worth several hundred million dollars for fibre-optic transmission equipment from Verizon Communications of the US.

It has also been increasing sales of its PCs as the global market improves.