Plexure Group's shares shot up 53% after the mobile software developer announced that McDonald's has renewed its contract with the company to use its digital customer engagement platform for the next five years.
Plexure was up 53% to 28 cents when the market opened this morning.
McDonald’s is Plexure’s biggest customer and under the new contract, the mobile phone marketing company will continue to provide McDonald’s with its platform over the next five years – subject to operational performance.
Chief executive Dan Houden said he was excited about the “continued partnership” with the fast-food chain and was looking forward to working towards their mutual goal of delivering “excellent experiences” for McDonald’s customers.
In its announcement to the NZX, Plexure said the renegotiation of the contract meant the transformation of the Plexure division has been completed. It is under new management following its merger with transaction platform provider Task in September last year.
“The transformation immediately underpins group profitability and enables the business to focus on driving profitable growth by leveraging its combined technology stack to provide an end-to-end cloud engagement and transaction platform at scale for the global QSR [quick service restaurant] and hospitality sector,” Houden said.
The software developer will be required to pay service credits if the company fails to meet the applicable service levels.
The company said it expects total revenue for the year to March 31, 2023, to be $56 million – up from $32.6m in the previous period.
Plexure’s earnings before interest, taxes, depreciation and amortisation (Ebitda) are expected to be around $3.7m for the year, after adjustment for non-cash employee share charges of $5.2m.
This compares to an adjusted Ebitda loss of $13.1m in the previous financial year.