Escher expects revenue to beat expectations

Shares in Escher Group Holdings, a provider of outsourced, point-of-service software to the postal industry, rocketed on Thursday after it revealed that it expects its revenue for the year ended December 31st to be 'materially ahead of market expectations'.

Shares in Escher Group Holdings, a provider of outsourced, point-of-service software to the postal industry, rocketed on Thursday after it revealed that it expects its revenue for the year ended December 31st to be 'materially ahead of market expectations'.

The news came as the company announced a contract win from POS Malaysia to deliver its new postal retail system following a rigorous tender process.

Under the contrat the group will deliver its Riposte licensed software, customisation, data centre hardware and deployment of the solution across Malaysia's network of postal outlets.

The contract is expected to have a material effect on its revenues for the year. The contract also makes provision for two years of maintenance.

Chief Executive Officer Liam Church said: "Escher's vision is to build on its position as the leading provider of platforms for the global postal industry. This contract win with POS Malaysia extends our growing customer base in Asia, demonstrates the strength of our team in this important market and is an endorsement of our vision. We are delighted that POS Malaysia has chosen us to be a central part of their Transformation Plan."

The company also said that earnings before interest, tax, depreciation and amortisation (EBITDA) for the year will be in line with expectations.

Escher's Riposte software is an end-to-end solution for post offices that provides a single platform for the delivery of all services including retail, postal, payments, money transfer, banking and government services.

The share price rose 17.28% to 237.50p by 13:30.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to