Eg solutions signs five-year contract worth at least £8m

Back-office workforce optimisation company eg solutions has entered into a master supplier agreement with "a leading provider of business process management" in the UK worth at least £8m.

Under the agreement with an existing customer, the company has been appointed as the preferred supplier of back office workforce optimisation solutions for a minimum of five years. All of the pre-existing annual and three-year term contracts will be replaced by the new agreement along with new licence subscription sales made in the last month which will continue through the five year term.

The total contract value over the term will be a minimum of £8.12m including £1.4m incremental revenue.

Eg said the impact on licence revenues I the current year will not be significant, but the extended term of the agreement means the company's order book of recurring revenues to be recognised beyond the current financial year end will rise 24% from the year ending 31 January 2017 to £22.93m.

Chief executive officer Elizabeth Gooch said: "We are pleased to announce another significant long-term contract win which not only underpins our future revenue streams but also creates an exciting partnership with a major customer in the UK."

At 1000 BST, the shares were up 1.5% to 138p.