EU Supply extends agreement with Ireland government

E-procurement software provider EU Supply announced on Friday that it has signed an 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.

The AIM-traded firm said the platform is powered by the its CTM platform and in use by over 2,500 public sector bodies in Ireland.

As announced on 13 September, the Minister 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,” the board of the company said in a statement.

“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 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.”