EU Supply PLC Contract wins and update on expectations for 2017 (5452U)

TIDMEUSP

RNS Number : 5452U

EU Supply PLC

19 January 2017

19 January 2017

EU Supply plc

("EU Supply", the "Company" or the "Group")

Contract wins

and

Update on expectations for 2017

EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that it has entered into a contract with Vest-Agder County Council in southern Norway for up to 35 local authorities and other public sector bodies to use EU Supply's CTM(TM) platform.

The contract is expected to generate total revenues of approximately GBP250k over 8 years, including licenses and support, implementations and integrations, of which approximately GBP65k of revenues is anticipated to be received in 2017.

In addition, EU Supply has entered into three new contracts for customer-paid enhancements of its CTM(TM) platform with two existing customers, which are expected to generate over GBP80k in revenues in 2017.

While the Board expects to release a trading update for the year ended 31 December 2016 ("trading update") later this month in accordance with its usual timetable, it is already apparent to the Board that the new contract wins detailed above combined with the recent currency exchange rate movements will result in the Group's expected revenues being ahead of, and its operational costs being higher than, market expectations for the year ending 31 December 2017. The Board continues to expect that the Group will report underlying operational profitability in FY 2017 in line with market expectations.

A further update will be provided at the time of the trading update.

FURTHER ENQUIRIES

 
    EU Supply PLC                  Tel: [phone] 
     Thomas Beergrehn, CEO 
     Mattias Ström, CFO 
 
     Stockdale Securities           Tel: [phone] 
     Tom Griffiths, David Coaten 
 

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(TM) ("CTM(TM)") 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(TM) platform is one of the easiest to use and most functionally advanced solutions available in the market. The CTM(TM) 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 GBP2.061m (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.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 19, 2017 02:00 ET (07:00 GMT)