Shares in digital mental well-being firm Kooth PLC (AIM:KOO) soared 33% after securing a £148m ($188m) contract to serve all 13-25-year-olds in California.
The four-year deal has led to a significant upgrade in revenue guidance for 2023 to no less than £34m, compared to £20.1m the year earlier.
The London-based company, listed on the AIM, plans to hire more than 200 staff in the next year to support its expanding US infrastructure.
The contract further cements Kooth's growing presence in the US market, following a pilot contract with Pennsylvania State in 2022.
Kooth also intends to raise £10m to accelerate its expansion strategy. Trading for the first half of 2023 was in line with management expectations. The contract win is expected to have a highly material impact on revenues and annual recurring sales from 2024.
Mid-afternoon, the shares were up 87p at 347.9p.