In a filing with Bursa Malaysia, Redtone said that Rens received the letter of award today with a commencement date of Feb 1, 2024.

“The contract covers the government’s unified communications including electronic mail system, calendar system, audio and video conferencing, chat and chat spaces, directory management as well as change management including user training, software support, security operation centre, network operation centre and helpdesk covering information security management,” it said.

It said that the contract would not have any effect on the issued share capital and substantial shareholders’ shareholdings of Redtone, as well as any material effect on the net assets, earnings and gearing of the group for the current financial year ending June 30, 2024.

However, it said the contract is expected to contribute positively to the future earnings of the Redtone group.

“Save for normal business and global economic risks, the management of Redtone is not aware of any other risk factors which may arise as a result of Rens’s participation in the contract.

“None of the directors or major shareholders of Redtone and/or persons connected with them have any interest, direct or indirect, in the contract,” it said.

At market close, Redtone’s share price was up by 4.5 sen or 5.08% at 93 sen, giving it a market capitalisation of RM727.7 million.