The e-procurement software company EU supply announced at its annual general meeting that, for the first four months of 2018, its unaudited revenues have increased by 28%. The AIM-traded organisation added that it hopes to continue this growth and increase its market share in Europe.
David Cutler, Chairman of EU Supply, informed investors that nearly 66% of the company’s revenue was from repeat customers at the end of 2017, and trends indicate that the company will enjoy a revenue growth throughout 2018.
Cutler pointed out that this revenue growth was primarily due to the compulsory provisions stated in the 2014 EU Directives, which stipulate that all public sector bodies and organisations have to publish tender notices and documents online. By November 2018, these e-procurement standards will become effective across the EU.
The aim of these directives is to make it easier and cheaper for SMEs to bid for public contracts. It is anticipated that this will offer the public sector best value for money for civil works in regards to the procurement of goods and services. Additionally, it is hoped that e-procurement will foster healthy competition and transparency in awarding contracts, while making the entire process of public procurement simpler and more flexible for public bodies, agencies and businesses.
Cutler also stated that the company is keeping its operational costs under control and, with rising revenues, it is investing in key staff recruitment to sustain and support this growth. In 2018, EU Supply expects more customers, especially from Denmark and Norway which have already expanded the organisation’s client portfolio.
With the demand for e-procurement software increasing, it is anticipated that EU Supply will continue to enjoy significant revenue growth in 2018. In 2019, the company will focus on selling modules for compliance with EU Directives besides upselling of integration work, other services and licenses.
Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.