21 Nov 2017 07:00
21 November 2017
EU Supply plc
("EU Supply", the "Company" or the "Group")
Contract win
EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that it has received its fourth contract (the "Contract") pursuant to the framework agreement entered into with an existing customer (the "Customer") for additional services to its CTMTM platform which was announced by the Company on 16 June 2017 (the "Agreement").
The Agreement is for 3 years with a further year at the Customer's option and has a total value of up to €3.6m. The Contract comprises customer-paid enhancements and is expected to generate revenues of approximately €675k, bringing the total value of the contracts called-off under the Agreement to date to, in aggregate, approximately €1.9m.
In order to free up capacity to deliver the anticipated increased growth in enhancements and integrations for existing and new customers expected in 2018, the Company will accelerate the delivery of half of the Contract in the remainder of this year. As a result, the Board expects that the Group's revenues for the year ending 31 December 2017 will slightly exceed market expectations while, due to the increased cost of delivering the Contract by using consultants, the Group's operating profit for the year ending 31 December 2017 is expected to be in line with market expectations.
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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 esourcing, 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 8,000 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.