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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The board believes that the prospects for the group remain strong.
The share price rose 27.48% to 225.00p by 14:39.
NR
-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down
