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IPS Securex lands contract worth S$19.1m

IPS Securex Holdings announced on Tuesday that it has received a letter of acceptance (LOA) from an undisclosed government agency in South-east Asia for a contract worth S$19.1 million.

Out of the S$19.1 million, up to S$10.1 million is for IPS to supply, deliver, install, commission and test an integrated security solution (System A) and provide maintenance support services for seven years for System A following its complete implementation, as well as other System A support and professional services.

The balance of up to S$9 million is an option exercisable by the agency for IPS to supply, deliver, install, commission and test a second integrated security solution (System B) following the complete implementation of System B, as well as other System B support and professional services.

Under the LOA, System A and - if the option is exercised - System B are to be completed within 12 months of the LOA and notice of exercise of the option respectively. Payment is expected to be made by the agency to IPS upon completion of each agreed milestone.

The LOA is not expected to have a material financial effect on the earnings per share and net tangible assets per share of the group for the financial year ending June 30, 2019.