Escher scoops deal bigger than itself!

Dublin-based, postal industry software firm, Escher Group, the most recent software and IT services company to list on AIM (see here), has scored a deal whose total value is worth over three times its revenue and even more than its market capitalisation! The contract with an unnamed postal authority is expected to be worth at least $50m over a 15 year term. Escher has also signalled that revenues for 2011 will be around $14m. The company is worth around £27m on the stock market. Escher has been digging deep to win this and other recent contracts, and management anticipates that ‘adjusted’ net earnings for last year will be $2.4m. We will have to wait till the end of March to see the extent of the ‘adjustment’! Nonetheless, well done them!