eg solutions plc (AIM: EGS), the back-office workforce optimisation company, is pleased to announce that it has entered into a five-year Master Supplier Agreement (the “Agreement”) with a leading provider of business process management in the UK.
Under the agreement with an existing customer, the Company has been appointed as the preferred supplier of back office workforce optimisation solutions for a minimum of five years. All of the pre-existing annual and three-year term contracts will be replaced by the new Agreement along with new licence subscription sales made in the last month which will continue through the five year term. The total contract value over the term will be a minimum of £8.12m including £1.4m incremental revenue.
The net impact on licence revenues in the current year will not be significant. However, the extended term of this Agreement means that the Company’s order book of recurring revenues to be recognised beyond the current financial year end will rise to £22.93m, an overall increase of 24% from the financial year ending 31 January 2017. This new five year fixed term contract provides significantly greater visibility of future revenue for all of the Company’s stakeholders.
Elizabeth Gooch, CEO of eg solutions, commented:
“We are pleased to announce another significant long-term contract win which not only underpins our future revenue streams but also creates an exciting partnership with a major customer in the UK.”
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned