14 October 2016
EU Supply plc
("EU Supply", the "Company" or the "Group")
EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that the Company has signed an addendum (the "Addendum") to the agreement with the Minister for Public Expenditure and Reform in Ireland to develop certain enhancements to the Irish Government's national eProcurement platform, www.eTenders.gov.ie, which is powered by the Company's CTM™ platform and in use by over 2,500 public sector bodies in Ireland. As announced on 13 September 2016, the Minister for Public Expenditure and Reform recently executed its option to extend the existing agreement between the parties until May 2020.
The Addendum is on a time and materials basis and EU Supply expects it to generate revenues, in aggregate, of approximately €450,000, with up to €50,000 being generated in 2016 and the remainder in 2017.
While the signing of this Addendum underpins the Board's confidence in the forecasted revenue growth in 2017, for the year ending 31 December 2016 the continued weakening of sterling (versus mainly Swedish Krona and the Euro) is expected to increase the Company's reported revenues (as well as reported costs) ahead of consensus forecasts resulting in an overall loss marginally higher than the bottom of the range of consensus forecasts. However, based on the Company's current pipeline of opportunities, including several enhancement projects under discussion, and its order book, the Board still anticipates that the Group will reach operating profit on a monthly run rate basis in the last quarter of 2016.
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 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.
This information is provided by RNS