LONDON (Alliance News) - EU Supply PLC Thursday said it expects to report a smaller loss for 2014 than it did in 2013, supported by revenue growth of around 41% during the year, on the back of a number of contract renewals and extensions.
In a trading update, the software-as-a-service provider said revenue for 2014 is around GBP2.5 million, which would mark a 39% increase on the GBP1.8 million in revenue it recorded in 2013.
The company said its loss before interest, tax and exceptional costs is expected to be approximately GBP2.1 million, compared with a GBP2.6 million loss in 2013, when it booked more exceptional costs.
EU Supply said it continued to generate a pipeline of leads during the year from a diversified portfolio of primarily small- and mid-sized contracts and opportunities in both the public and private sectors.
"All of EU Supply's long-term contracts that were due to expire during the year have been renewed or extended. This provides a strong basis for future revenue growth, underpinned by the new EU directives coming into force over the next two to three years," the company said in its statement.
EU Supply said it held around GBP1.1 million in cash at the end of the year, and remains debt free.
"The number of small and mid-sized opportunities in the pipeline for 2015, together with the new service offerings, give the board confidence that, without winning a single large contract, the revenue growth in 2015 will match that just achieved for 2014," said Chief Executive Thomas Beergrehn.
EU Supply shares were up 1.5% at 17.00 pence mid-morning Thursday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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