Infonic wins 8.3 mln stg software contract from UK Ministry of Defence

LONDON (Thomson Financial) - Infonic PLC said it has won a contract worth 8.3 mln stg to supply software licence and maintenance to the UK Ministry of Defence.

The information management software company said software worth 4.1 mln stg will be delivered within the first 90 days of the contract and the balance, comprising contracted maintenance and services worth 4.2 mln stg, will be delivered over 7 years.

Under the terms of the contract, Infonic will provide the EDS-led ATLAS Consortium with its Geo-Replication software which will be used in the UK Defence Information Infrastructure (Future) project, which is managed by ATLAS.

Infonic also said it is in talks with shareholders regarding financing options to help it to develop its sales and marketing infrastructure to meet the increasing global demand for its technology.

In light of the companies need for additional capital there will be an issue most likely, however i doubt if they going to issue lower than 9 or 10 p considering the current share price.

taking into account the growth in revenue to june from 1.8m to 4m. and the 8.7m MOD contract, I believe the share has only one way to go in the long term.

8.25p - 8.5p maybe a good level to top up however no idea if it will go there.

I am personally staying put my new target price is 12p. Have bought additional shares. hoping for 12p by christmas. and maybe a lot higher by mid next year since JM Finn target was set prior to the MOD contract.