IDE Group shares surge after securing 'significant' contract win

Cloud and IT managed services provider IDE Group has signed a "significant" new contract with an existing customer within its partnership channel.

IDE said on Monday that its mystery partner had committed to procure services up to a value of £22.5m over the next three years, with the opportunity to extend for up to another two years if the commitment is not met.

The AIM-listed group added that the £22.5 million was in addition to the existing £5.0m in annual revenues of revenue contracted with the partner.

Chairman Andy Parker said: "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."

As of 0940 GMT, IDE shares had skyrocketed 301.29% to 3.11p.