Escher wins big contract with leading postal authority

published 8 February 2012

Shares in Escher Group, the provider of outsourced, point of sale software to the postal industry, leapt on Wednesday following the announcement it has won its largest contract in the group's history, to provide its software and maintenance services to a leading postal authority.

The contract, which has a 54-month base period and renewal options, is expected to generate, over a 15-year term, around $50m in revenue for the group, but with scope for substantial additional revenue. The first revenue from this contract win, worth approximately $4m, is expected in the year ending December 2012, with increasing revenue in 2013 as the software is rolled out across the network.

The company also released a year end trading update which estimated that revenue for the year ended December 31st was in excess of $14m, while adjusted net earnings for the year were in the region of $2.4m.