30 May 2017 07:00
30 May 2017
EU Supply plc
("EU Supply", the "Company" or the "Group")
AGM Statement
At its Annual General Meeting to be held at 11.30 am today, David Cutler, the Chairman of EU Supply plc (LSE AIM: EUSP), the e-procurement SaaS provider, will make the following statement:
"2016 saw the achievement of the Board`s target of monthly run rate profitability by 31 December 2016. The focus for 2017 remains to build revenue on this strengthened base to secure increasing European market share with a profitable future. I am happy to report that in the first four months of 2017, revenues have grown at over 25 per cent. compared to the same period in 2016.
As of 31 December 2016, 71 per cent. of revenues were of a recurring or repeated nature which, together with the Group's promising pipeline of opportunities, gives the Board confidence that the strong revenue growth will continue for the rest of this year.
The strong growth, order book and the encouraging pipeline of opportunities referred to above reassures the Board in the Group's substantial prospects for 2017, including particularly from countries such as Denmark, Norway, Lithuania and Ireland. Furthermore, the first orders from the German market are anticipated to be received in the second half of the year.
The Group continues to see high activity in the European e-Procurement markets where there is a low adoption rate highlighted by many public sector organisations tendering or planning to tender for an e-Procurement solution in the near future.
Group costs continue to be tightly controlled and, with the growing revenue stream and conversion of the pipeline, the Group is making careful investment in key staff to support the continued growth of the Group.
The ratified EU Directives, which before November 2018 require all public bodies and authorities to make available all documents and notices online and to manage essential phases of all higher value tenders electronically, continue to create opportunities for the Group. The Directors believe that the continued strong growth demonstrates that EU Supply is well positioned to take advantage of this expanding market.
The Group sees further upselling opportunities of services and modules in addition to those minimum services required for compliance with the EU Directives. Such demand, and the functional breadth, depth and flexibility of the Company's CTMTM platform, reinforces the Board's view that the underlying market is also continuing to expand also well beyond November 2018 and that EU Supply continues to secure a share of that growth."
FURTHER ENQUIRIES
|
A copy of this announcement is available at www.eu-supply.com.
Notes to Editors
EU Supply is the UK holding company of the EU Supply Group, a Sweden-based e-commerce business, which has an established, market-leading, multilingual e-procurement platform for e-sourcing, e-tendering and contract management, tailored for the highly regulated European public sector market.
Since 2006, the Group has invested heavily in employing specialist programmers to add functionality, legal compliance as required and security features to its Complete Tender Management™ ("CTM™") platform to ensure that the Group is ideally placed to secure new contracts with EU Member States and their Contracting Authorities. The platform is available in 16 different languages.
The Directors believe that the Group's CTM™ platform is one of the easiest to use and most functionally advanced solutions available in the market. The CTM™ platform is used by over 7,000 European public sector bodies in 9 EU/EEC Member States and has National Procurement System status in four Member States (the UK, Ireland, Norway and Lithuania).
The Company's shares were admitted to trading on AIM in November 2013. In August and September 2015, the Company raised a total of £2.061m (before expenses) through a placing of new shares and the issue of first and second tranches of Convertible Loan Notes to institutional and other investors.