29/11/2001
Clarity has signed a deal with the Laurel Pub Company for the supply of EPOS, back office and other software to its estate of 621 public houses. The contract, encompassing both software and hardware, is worth over £2.4m to the group over the next 12 months. York also announced that Clarity's subsidiary, Microtrain, would be providing 'roll out and training services', which should bring in another £1m in revenues. On top of these two deals, Clarity has linked up with Grey Archer, an on-line exchange for the pub trade. Under the terms of a new agreement, Clarity has been appointed by Grey Archer as the sole recommended EPOS system supplier for their clients. Although this is not a contract as such, it is a potentially lucrative endorsement that could generate anything from £2m to £10m in sales over the next two years. News of all of this was released at the same time as the group's results for the half year to September which showed sales up 68% to £2.42m and pre-tax losses down to just £80,000 (£312,000 loss). During this period, the group strengthened its balance sheet via a vastly over-subscribed rights issue that raised £2.56m. Profits of £700,000 are expected in the year to March 2002 on sales of £7m. Buy.
| Market cap: | £12.4m |
| PE Forecast: | 12.3 |
| Share price: | 89p |
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