Cloud eCommerce marketplace operator @UK (LON:ATUK) was sky-high on Wednesday morning after three delayed contracts came home to roost.
The three contracts, referred to in the group’s mid-December profit warning, are expected to generate revenues of £500,000 over a three-year period. To put that into context, the market expects the company to report revenue of £2.2mln in 2012.
The company has received firm purchase orders for £190,000, of which £112,000 has already been paid. The company added that it has collected over £220,000 in cash so far in 2013 relating to these and other contracts and expects to see strong positive cash flow in the coming months.
The three delayed contracts are for: an extension of the Hertfordshire County Council marketplace to enable trading with schools and academies; the return of Bristol City Council as a customer for @UK’s eCommerce marketplace; a contract for an eCommerce marketplace for Work Based Learning, extending the GeM online contracts database system used by higher and further education institutions.
Ronald Duncan, chairman of @UK commented, "We are delighted with these early sales successes in 2013, demonstrating the breadth of demand for our ecommerce marketplace and services. While it is always difficult to be certain of the timing of public sector contracts, we are confident that the market for our services is expanding and we view the future with confidence."
Shares in @UK were up 12.7% to 12.4p in late morning trading.