4th Mar 2014 11:04
LONDON (Alliance News) - Shares in Ultrasis PLC jumped 18% Tuesday after it announced that it had won a three-year UK public sector contract which it estimates to have a potential value in excess of GBP8.0 million.
Shares in Ultrasis were up 17% at 1.20 pence Tuesday morning.
Ultrasis said that the detailed terms of the contract are confidential due to its nature, but it expects it to involve the assessment of over 80,000 people over the three year period.
It expects the services to go live in April, and for the contract to generate income from July.
Ultrasis provides healthcare products and services. It said the contract is to provide services to 10 locations in England initally. As the new contract is substantial it requires additional working capital to establish infrastructure in the set-up period, Utrasis said.
As a result, the company's largest shareholder Paul Bell, who has a 22.2% interest in the company, has agreed to provide a non-transferable GBP450,000 convertible debt facility.
Bell has agreed that all amounts of interest owing to him under other existing loan facilities he has with the company will be rolled up into the principal amount of those loans in order to reduce short-term cash working capital requirements of the company during the periods whilst those loans remain outstanding.
"We are delighted to be chosen to provide this major public sector contract over the next three years and will begin the set up phase immediately," said Chief Executive Officer John Smith in a statement Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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