EU Supply PLC Trading Update (1358V)
26 January 2017 - 6:00PM
UK Regulatory
TIDMEUSP
RNS Number : 1358V
EU Supply PLC
26 January 2017
26 January 2017
EU Supply plc
("EU Supply", the "Company" or "the Group")
Trading Update
EU Supply plc (LSE AIM: EUSP), the e-procurement software
provider, announces a trading update ahead of the release of its
audited final results for the year ended 31 December 2016, which
are expected to be slightly ahead of market expectations. All of
the figures included in this announcement are subject to audit.
Revenue is expected to be up 21% to GBP3.4m (2015: GBP2.8m), of
which, as at 31 December 2016, approximately 71% (2015: 73%) was
expected to be of recurring or repeated nature.
Loss before interest and tax is expected to be reduced by
approximately 43% to GBP0.8m (2015: GBP1.4m), despite the negative
impact of foreign exchange movements.
Revenue growth has continued in Q4 2016 and the Group is
expected to have been profitable before tax in the quarter.
The Group also generated positive cash flow in H2 2016 with cash
as at 31 December 2016 of GBP0.97m (30 June 2016: GBP0.91m and 31
December 2015: GBP1.43m).
Business Alerts services continued to grow during 2016 with
anticipated annual revenues of over GBP450k, mainly in Norway. The
paid for enhancement contracts won during H2 2016 and early 2017
are expected to complement the Group's SaaS recurring revenues
going forward.
The Company expects to release its audited final results for the
year ended 31 December 2016 in late April 2017 when the Board will
provide an update on trading and prospects.
Commenting, Thomas Beergrehn, CEO of EU Supply, said:
"I am pleased to report that the actions initiated by the Board
just over a year ago have resulted in the Group's first profitable
quarter. While we expected to reach operating profit on a run rate
basis before the end of the year, we achieved more than that
despite currency movements.
The Group has also built an exceptionally strong order book for
H1 2017 and a promising pipeline for the year and beyond. I look
forward to accelerated revenue growth in 2017 and expect to report
a first annual profit before interest and tax."
FURTHER ENQUIRIES
EU Supply PLC Tel: 020 7127
Thomas Beergrehn, CEO 4545
Mattias Ström, CFO
Stockdale Securities
Tom Griffiths, David Coaten
Tel: 020 7601
6100
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
END
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