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Escher Group Holdings plc
Annual report 2011
09
Financial statements
Corporate governance
Business review
Overview
services and identity management
to retailers and mobile network
operators alike.
We expect 2012 to be a strong
year with the prospect of further
substantial growth in 2013 as we
benefit from contracts secured in
2011. We will continue to focus on
core markets, existing customers
and expanding our product
offering while strengthening
our geographical penetration.
Status of the market
Our win in Q1 2012, with the
United States Postal Service,
confirms Escher’s position as the
pre‑eminent supplier of software
and services to the global postal
market. The contract, which has
a 54 month base period and
renewal options, is expected to
generate, over a fifteen-year term,
approximately US$50 million in
revenue for the Group but with
scope for substantial additional
revenue. Even in current economic
conditions the global market remains
significant. There are over 650,000
permanent post offices across the
globe employing 4 million personnel
and handling US$327 billion worth
of business.
The world in which postal operators
conduct their business continues
to evolve and develop. The business
of delivering mail is constantly
redefined and as new challenges
arise, postal operators are looking
to their suppliers for innovation in
this ever-changing market space.
The rise of digital technology is
an important factor in this equation
for all postal operators. With new
opportunities offered by digital point
of service, they are diversifying their
businesses to find new revenue
opportunities, particularly from
financial services, mobile money,
e-Government and the increase in
digital mail. Escher sees opportunities
for the branch network to diversify
to device-to-device transactions,
self-checkout and online services.
Overall, with our products,
solutions, innovation and global
position, Escher is strategically
positioned to assist postal
operators to deliver sustainability
in this new commercial world.
Our outlook
Since the year end, the announcement
of our largest ever contract win,
with the United States Postal
Service, coupled with the recent
win of Pakistan Post and contracts
for self service with Jersey and
Namibia validates the Board’s belief
that Escher’s software will continue
to play a significant role in enabling
post offices across the globe to
embrace digital point of service.
Our pipeline of work is growing at
a healthy rate and the opportunities
for our technology continue to
expand. Much planning has already
taken place in the current financial
year and further judicious investment
will be made to take advantage of
these opportunities. The Board
believes that 2012 will be another
exciting year for the company with
further significant progress expected.
As CEO, the day-to-day management
of our company is made that
little bit easier when I look at
the management and staff who
continue to show dedication and
commitment to Escher.
It is their vision and hard work
that makes this a fantastic
company and it is through their
endeavours that the company
will grow into the future.
Liam Church
Chief Executive Officer
Escher Group Holdings plc
12 April 2012
“Our aim is to build on the success that Escher
has established as the world leader in the supply
of digital point of service software. We are an
innovative group that meets and exceeds the
demands of our customers and the market.”