LONDON (Alliance News) - Back-office software company EG Solutions PLC on Wednesday posted lower pretax profit in its recently completed financial year due to investments in sales and marketing, as revenue increased only marginally.
EG said its pretax profit for the year to the end of January was GBP9,000, down from GBP407,000 a year earlier. EG said the small profit actually was better than it expected, as it had anticipated swinging to a loss.
Revenue was GBP7.6 million, slightly up from GBP7.5 million in 2014 but weaker than expected due to a number of sales not flowing through by the end of the year. The growth came from software licence, maintenance and software services sales, EG said.
Meanwhile, administrative expenses increased to GBP5.5 million in financial 2016 from GBP4.8 million in financial 2015, following increased investment in sales and marketing.
EG said it won a series of contracts with telecommunications, local government and retail banking clients in the year and said its performance improved in the second half thanks to higher software sales.
"We have had a solid year with a continued increase in our order book and a strong increase in recurring revenues. We have invested in our product and it remains the market leader. This lays solid foundations for the future and we will continue to work to develop our sales and marketing capability to deliver on the clear and substantial market opportunity," said Chairman Duncan McIntyre.
EG Solutions shares were down 3.2% to 50.83 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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