Universe Group (LON: UNG) announced Tuesday that it has entered into an agreement worth approximately £4.4 million with an existing retail customer.
The agreement will see the company supply outdoor payment terminals for the forecourt estate of a “major existing retail customer.”
Universe Grup shares have jumped 19.5% to 5.5p following the news.
Revenue from the contract will be recognised on delivery Universe Group said, with the timing remaining subject to further discussion. However, they did state that the revenue and profit would be incremental to management's existing expectations.
Neil Radley, CEO of Universe, commented: “We are very pleased to announce this contract, which emphasises our strong market position in this area.
“This contract will deliver either an outperformance to our expectations for this financial year or, dependent on timing and the outcome of other customer proposals, provide a firm foundation as we enter the next financial year. We remain a business committed to a transition to a SaaS model focussed on recurring revenues and look forward to reporting further progress in that regard in due course.”
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.