Smarttech247 Group PLC (AIM:S247) on Tuesday landed a new three-year contract which, along with other recent deals, underlines growing momentum for the small-cap security-tech firm.
The company announced it won a contract worth $925,000 from an existing client in the automotive sector.
It will see Smarttech provide its Endpoint Detection & Response (EDR) solution on top of the current Managed Detection and Response (MDR) service that’s already being provided to the client.
EDR is designed to detect, investigate and respond to cyber threats on ‘endpoint devices’ like team computers, laptops, and servers.
This new business win is an example of Smarttech’s strategy to build upon annual recurring revenue, focusing on long-term contracts and expanding the value of existing agreements.
“We are thrilled to be expanding our provision of services with another existing client, reinforcing our strong, ongoing relationship and highlighting the continued trust our clients have in our MDR expertise to protect their critical infrastructure,” Smarttech chief executive Raluca Saceanu said in a statement.
"As organisations worldwide increasingly prioritise advanced threat detection and response, this latest contract showcases our ability to deliver security solutions at scale as our momentum continues to build."
Andrew Darley, analyst at stockbroking firm Cavendish, noted that Tuesday’s business win underpins Smarttech’s forecasts, where 90-to-95% growth in annualised recurring revenues is anticipated over the next five years.
Moreover, whilst not actually naming names, the analyst highlighted Smarttech’s “growing roster of impressive client logos” as well as the fact that, so far, the firm has seen 0% customer churn.
Cavendish sees Smarttech shares nearly doubling in value, based on the broker’s price target of 16p and yesterday’s closing price of 8.5p (albeit, today’s market sees the share now priced above 9p).
“Our unchanged 16p target price is equivalent to 12x FY26E adj EBITDA in an active M&A environment where 15-20x is the norm, giving plenty of upside,” Darley said in a note.
At a recent price of 8.5p, the shares trade for a "compelling" six times 2026 valuation on an EV/EBITDA basis, the analyst said.
Smarttech shares climbed 7.65% on Tuesday, changing hands at 9.15p each – giving it a value of just over £11 million.