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'.

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.

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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