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Ideagen PLC (IDEA)

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Friday 10 May, 2013

Ideagen PLC

VA Contract Update

RNS Number : 3944E
Ideagen PLC
10 May 2013
 



 

Ideagen PLC

("Ideagen" or the "Company")

 

VA Contract Update

 

Ideagen PLC (AIM: IDEA), a leading supplier of Compliance based Information Management solutions, announces that the Company has received notification from the US Department of Veterans Affairs (VA) to 'terminate for convenience' year two of the Prism contract expected to complete during November 2013. The cancellation of this contract has no effect on market expectations for the current financial year.

 

As notified in the announcement of 29 November 2012, approximately 70% of the anticipated revenue from year two of the contract of approximately £1.05 million was recognised in the financial period ending 30 April 2013.  Given the current nature of the US Federal budgets the Company had made ample contingency within its business plan to ensure that in the event of this programme discontinuing following the second year of the contract there would be no impact on the current market expectations for the financial period ending 30 April 2014.  The Company therefore remains confident in meeting market expectations for the financial period ending 30 April 2014.

 

The decision to terminate year two of the Prism contract was made for budgetary reasons and the Company remains a trusted and important supplier to the VA and will continue to support the existing deployment of Proquis Enterprise™ at 40 VA hospitals across the USA and to market its products to VA hospitals at a local and regional level.

 

The notice to 'terminate for convenience' the Company's Prism contract is a no fault termination right held by the US Government over all Federal Contracts and, as the Company has complied fully with all commercial and technical contractual obligations, it is entitled to a settlement under Federal Acquisition Regulation (FAR) 52.2124 (i) in respect of the second year of the contract to November 2013. The VA has requested a proposal for settlement from the Company which will be submitted as soon as possible.

 

David Hornsby, Chief Executive of Ideagen, commented, "Whilst we are disappointed that year two of the Prism contract has been terminated, I am pleased to report our  budgetary processes were robust. The business continues to trade strongly and the Company remains confident of delivering further revenue and profit growth in the current financial period."

 

Enquiries:

 

 

Ideagen Plc

 

Tel: 01629 761590

David Hornsby, Chief Executive

 

 

Graeme Spenceley, Finance Director

 

 

 

 

 

finnCap (Nominated Adviser and Broker)

 

Tel: 020 7220 0500

Matt Goode/Charlotte Stranner (Corporate Finance)

 

 

Stephen Norcross (Corporate Broking)

 

 

 

 

 

Walbrook PR Ltd

 

Tel: 020 7933 8780

Helen Westaway

 

[email protected]

Paul Cornelius

 

[email protected]

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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