Acuity RM subsidiary secures three-year contract with 'major organisation' within British Government

Acuity RM said on Tuesday that its Acuity Risk Management subsidiary had secured the £561,000 contract that will see this unnamed client make use of its STREAM software over the next five years.

The AIM-listed group also noted that this deal marked one of three orders from the same customer won so far in 2023, with the aggregate value of which being more than £1.0m.

Acuity RM also added that it has seen "strong" recent growth in orders to £955,000 from 1 April, with more expected before 31 December, while contract renewals, a significant KPI for the company, sat at 96%.

Forward contracted revenue as of 31 October was £2.9m, while its sales pipeline increased to £5.7m as of 15 November from £3.8m in March, with increasing contribution from partners.

"Annual revenues have grown strongly over the past two years and this is expected to continue and further strengthen. With renewals and the expected growth in orders based on the partner programme and general strength of the sales pipeline, the Group is making progress towards cash-generative trading. Profitable trading, under IFRS accounting standards will take longer to achieve, although it remains a realistic objective in the next year," said Acuity RM.

As of 1125 GMT, Acuity RM shares were up 3.84% at 5.09p.

Reporting by Iain Gilbert at Sharecast.com