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Induction (AIM: INHC) shares are gaining Tuesday after it announced that a 2-year contract has been awarded by the Department of Work and Pensions (DWP) to its partner, Involve Visual Collaboration Limited.
The virtual care platform said the deal will see Involve provide communications services to support the virtualisation of the UK benefits system.
The contract includes options for the DWP to extend the agreement for up to a further two years.
The contract value to Involve is up to £3.95 million for the initial 2 years, totalling £7.79 million for the full 4 years. The contract value to Induction is up to £2.6 million for the initial 2 years, based on usage, totalling a maximum of £5.2 million for the full 4 years, if the contract is extended.
Induction said there will be a small contribution of around £150K to its revenue in the current financial year.
As part of the deal, Induction will provide DWP with its web-based video consultation platform, Induction Attend Anywhere.
James Balmain, CEO of Induction, commented: “This is our first major contract outside of the healthcare space and exemplifies the versatility of Induction's platforms as we look to expand from the secondary healthcare market.”
Idduction shares are trading at 50.4p, up 4.8% at the time of writing.
Induction shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Induction shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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