LONDON (Alliance News) - EG Solutions PLC saw its shares rise Wednesday after it said a number of new contract wins drove an increase in revenue, and helped it return to profitability.
The software company reported a pretax profit of GBP621,000 for the six months to July 31, compared with a pretax loss of GBP735,000 in the first half of 2013.
Revenue in the period increased to GBP4.0 million, up from GBP2.2 million a year earlier. The company said software licences, maintenance and software services made up 72% of total revenue, with the rest coming from implementation and training services.
EG Solutions said trading in the first two months of the second half has continued to be positive, and it remains confident of achieving market expectations for the full year.
"The company has made a strong start to the financial year, with significant growth in revenue, profits and cash generation," said Chairman Duncan McIntyre in Wednesday's statement. "We will continue to invest to ensure we achieve the true growth potential of the company and remain confident of delivering our full-year financial performance in line with expectations."
The company said in a statement last month that it expects to beat current market expectations for the full year to January 31, 2015, and announced a new contract win with an existing client, which is expected to generate initial revenues of over GBP1.2 million.
EG Solutions said Wednesday that it will continue to invest in the infrastructure of the company to help generate and support new sales.
"There continues to be a number of factors driving the market forward as businesses strive for improved customer service, operational efficiency, cost control and risk management. These factors are driving increased demand for back office workforce optimisation solutions. The board remains focussed on creating a company that can maximise this opportunity and grow profitably, with revenue growth in excess of the market," it said.
Shares in EG Solutions were trading 7.4% higher Wednesday morning at 80.00 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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