LONDON (Alliance News) - EU Supply PLC shares rose on Tuesday after it said its pretax loss narrowed in 2014, after revenue was boosted by new sales teams whilst costs fell, and the company said the strong revenue growth has stretched into the start of 2015.
EU Supply shares were up 14% to 16.50 pence per share on Tuesday morning.
The electronic tender management and contract management service provider reported a pretax loss of GBP2.1 million in 2014, narrower than the GBP3.4 million loss in 2013 as revenue increased and its administrative costs fell.
The company generated GBP2.5 million in revenue from GBP1.8 million a year earlier, whilst total administrative expenses fell to GBP4.6 million from GBP5.0 million.
"The investments made in our sales team during 2014 has generated an encouraging pipeline of opportunities for 2015 and beyond as well as contributing to the 41% revenue growth to GBP2.5m delivered in 2014," said Chairman David Cutler.
"As EU Member States seek means to reduce costs and better control and transparency of procurement processes, the market opportunity thus provided gives us confidence that we are addressing a growing market," said Cutler.
During 2014, the company recruited new sales teams in the UK, Denmark and Sweden, which have boosted sales with "primarily small- and mid-sized contracts and opportunities in both the public and private sector," it said, adding that the stronger performance has stretched into the first quarter of 2015.
"With a team of dedicated and professional staff with clear and strong leadership, the board anticipates strong recurring revenue growth in the current year and beyond which will provide the foundation for sustained revenue growth and profitability in the future," the chairman added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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