Shares in IDE Group Holdings (IDE ) soared during early morning trading after the cloud and IT managed services provider signed a significant new contract with an existing customer.
The London-listed group said the existing partner, whose name remains undisclosed, has now committed to procure services from IDE to a value of £22.5m over the next three years with the opportunity to extend for up to another two years if the commitment is not met.
IDE said the contract - which adds £22.5m to the existing c.£5m per annum of revenue - was awarded ‘based on the excellent service provided by IDE’ to the partner over the years ‘with a commitment from IDE to reduce the cost of services across the partner's customer base.’
Andy Parker, Non-Executive Chairman of IDE said the contract win “further enhances” IDE’s existing relationship and is a testament to the “excellent services” provided by IDE.
Shares in IDE Group Holdings have increased by 40% since the beginning of December 2020 to open this morning 74.19% higher at 1.35p following the announcement.
He added, “We continue to believe that IDE is well positioned in the market with a product offering that is well aligned to customer requirements, and this contract is evidence thereof.
The global pandemic led to many challenges, and it is in this context we are pleased to report that underlying trading has been satisfactory in the second half of 2020."
IDE will publish a trading update for the year ended 31 December 2020 at the end of January.
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