16 Feb 2017 09:19
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Don't have an account? Click here to register.eg solutions warns on profits
Tue, 28th Feb 2012 13:04
Software supplier eg solutions sprung a profit warning on the market as the roll-out of a new software suite took longer than expected. The back office optimisation software company said revenue in the year to the end of January was at the £4.6m mark compared to £5.1m the year previous, while profit before tax is expected to be 'significantly below' the £0.5m achieved last year.This was due to the firm undertaking pilot projects with a new product suite in order to win new contracts, as well as finalising client commitment to the roll-out of these contracts, the company said. In the closing days of the financial year the firm won five new orders which include three new customers in the financial services sector in the UK.The majority of the revenue from these orders will be recognised within the current financial year. Each contract has significant potential for further roll-out and scope for recurring revenue, the company said. "Current trading is strong and this reflects demand for our re-engineered software products from both new and existing enterprise clients. We start the year with an excellent UK and international order book, which already constitutes 50% of market expectations for revenue for the current year and continues to grow," the firm said in a statement. Elizabeth Gooch, Chief Executive Officer, added: "Whilst we are disappointed about the impact on last year's performance, the developments have created strong demand from both existing and new customers in the UK and overseas. Even at this early stage, we are confident of our financial prospects for the remainder of the year."The share price fell 8.33% to 55.00p by 13:13, hitting a 52-week low.NR
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