3 Apr 2019 12:25
3 April 2019
EU Supply plc
("EU Supply", the "Company" or the "Group")
Framework Award
EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that, alongside four other businesses, EU-Supply Holding AB, a wholly owned subsidiary, has been awarded a position on a framework agreement. This follows a competitive tender process managed by ESPO, one of the UK's largest public sector buying organisations. As a result, the Company has today signed ESPO's UK-wide 774-19 eProcurement Solutions framework agreement, which will be effective for up to four years. The total value of the framework agreement is estimated by ESPO at £5 million per annum.
The Directors believe that while many of the potential customers across the UK will have existing solutions under previous agreements, a number of them will exercise contractual options to extend such agreements for pre-defined time periods. However, the 774-19 e-Procurement Solutions framework agreement sets out options under the UK Public Contracts Regulation 2015, that allows authorities to either run a further competition between the providers on the framework, or award directly (without further competition) the contract to a service provider on the framework deemed to meet the authority's specific needs, which is an option that the Company believes will be frequently used.
Commenting on the award, Thomas Beergrehn, CEO of EU Supply, said:
"We are pleased to announce the signing of this significant framework agreement following a competitive tender process, in which we achieved a very high score for our proposal. This may lead to substantial business growth across the UK in 2019 and beyond. We also see substantial value added possibilities with new modules and sub-modules, including for micro-procurement, being developed, adding potential further recurring revenue for the Company."
FURTHER ENQUIRIES
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A copy of this announcement is available at www.eu-supply.com.
About ESPO
ESPO is a public sector buying organisation which has been supplying the education and wider public sector for over 36 years. ESPO is jointly owned by six member authorities, Leicestershire County Council, Lincolnshire County Council, Cambridgeshire County Council, Norfolk County Council, Warwickshire County Council, and Peterborough City Council, and seeks to provide value-for-money for its customers by pursuing best practice in procurement, sourcing, supply chain management, contract management and compliance. Providing access to a complete procurement solution, ESPO offers a comprehensive products catalogue, access to over 120 frameworks, and bespoke procurement advice.
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 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. On 25 May 2018, the Company announced that it had raised a further £600k (before expenses) through a placing and subscription of new shares.