LONDON (Alliance News) -Shares in EG Solutions PLC were trading up by a quarter Wednesday morning after it said it expects to beat current market expectations for the full year to January 31, 2015, and it announced a new contract win.
Shares in EG Solutions were trading up 26% at 67.81 pence Wednesday morning.
The software company said it had won a "material" new contract with an existing client, which is expected to generate initial revenues of over GBP1.2 million. Some GBP630,000 of these revenues will be recognised in the current year. It expects to receive a further amount per year from the contract in additional annually renewable licence revenues.
The company said it expects to report a pretax profit of over GBP600,000 for its first half ended July 31, on revenue of around GBP4 million. It said it has won nine new contracts with new and existing clients in the first half, and its forward order book is worth GBP13 million.
It plans to continue reinvesting in the current year to grow its operational structure, expand its revenue pipeline, and capitalise on market opportunities.
EG Solutions said it will release its interim results September 17.
"We are pleased to report that the confidence we have in the market opportunity is being borne out by performance during the first half, and that the outlook is sufficiently positive to lead us to revise our expectations of performance for the full year," said Acting Chief Executive Elizabeth Gooch in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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