19 Feb 2015 10:08
19 February 2015
EU Supply plc
("EU Supply", the "Company" or "the Group")
Contract Win
EU Supply plc (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that it has received its first significant order within the humanitarian organisation sector.
EU Supply's partner Global eSourcing ("GeS") has entered into a 7 year Service Provider Agreement (SPA) with the Norwegian Refugee Council ("NRC") as well as the roll-out of EU Supply's CTM platform in six countries until the end of July 2015. The order comes following the successful piloting during the last six months of 2014.
The first phase of the roll-out will be for NRC's headquarters in Oslo and six countries in two of NRC's regions (Horn of Africa and the Middle East) during February-July 2015, all representing about 1/3 of NRC's spend. Insights from the rollout in the 6 countries will be used to potentially roll-out the CTM platform in other countries. The initial phase of roll-out and usage will contribute to revenues primarily from mid-2015.
A plan for a phase 2 roll out in additional countries where NRC has operations will be agreed between GeS and NRC during autumn 2015. The Board therefore expects the increased usage of CTM by NRC will generate a larger revenue stream for EU Supply in 2016.
The Board of EU Supply expects a gradual adoption across NRC's regions over the next 12 months and that full adoption is achievable by mid-2016 with revenues for EU Supply growing towards a contribution of up to £250,000 per annum at the time of full adoption.
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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 10 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 when the Company raised £5.0 million before expenses. In July 2014, the Company raised a further £1.35 million by way of a placing of new ordinary shares, the proceeds of which were mainly used to strengthen the Company's balance sheet, provide working capital to support the growth of the business as it expands and aims to gain market share and to provide additional funds for sales and marketing.