EU Supply reported its maiden profit in 2018.
The e-procurement software provider moved from a loss of £172,000 to a pre-tax profit of £360,000.
Revenues were 10% higher at £5.1m and more than two-thirds of these revenues are recurring. Net debt was just over £500,000 at the end of 2018.
EU Supply has signed its first contract in the oil and gas sector, which will provide additional opportunities. The phasing out of the EU’s ESPD service at the end of April will also provide additional business.
A profit of £500,000 is forecast for 2019 and £1.1m for next year. At 12.25p a share, the shares are trading on ten times prospective 2020 earnings. The expectations of the 2020 growth are partly based on the expected launch of the micro procurement service.
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