A substantial contract win relative to the market capitalisation of IDE Group ensured that the IDE Group Holdings share price (LON: IDE) became the first multi-bagger of the year!
The cloud and IT managed services provider today announced a contract which could see an existing customer purchase additional £22.5m worth of services over the next three years, in addition to an existing purchase of around £5m per year.
IDE noted that the contract could be extended for a further two years if the £22.5m is not fully met over the the three years.
A catalyst for the contract award was a a desire from the customer to lower the overall cost of services to its own customer base.
Commenting on the substantial win that sent the IDE share price soaring by over 270% in early afternoon trading was Andy Parker, Non-Executive Chairman:
“This contract win further enhances our existing relationship with a long-standing partner and is testament to the excellent service provided by IDE. 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.”
A full year trading update is due to be published at the end of this month.
The IDE share price is currently at 2.90p.