Malaysia-based cloud computing services provider RapidCloud International has won two contracts which are worth more than £1m in total.
Both contracts are with south east Asian government institutions. The first contract is to develop a cloud management system for a national legislature and the other is for cloud-based application programming interface, RapidAPI, which was launched this year. The revenues should be recognised this year.
To put this into perspective, RapidCloud reported revenues if around £2.1m for 2013. House broker Allenby had forecast 2014 revenues of RM14.5m, equivalent to £2.6m, although the strength of the pound could mean that the sterling figure would be lower.
The balance sheet is strong with net cash of RM12.4m at the end of 2013. RapidCloud raised £1m at 54p a share prior to its flotation in August 2013. A final dividend equivalent to 0.6p a share was announced with the results.
RapidCloud is moving into Indonesia and Singapore.
At 73.5p a share, RapidCloud is valued at £12.9m. Based on the current forecast 2014 earnings per share of 5.5p, the shares are trading on less than 14 times prospective earnings.
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