eg Solutions PLC Regulatory News (EGS)

30 Jan 2007 07:00

EG Solutions plc30 January 2007 30 January 2007 eg solutions plc Trading update and Board change eg solutions plc (AIM: EGS), the IT software and services company, announces afurther update on trading for the year ending 31 January 2007 and theresignation of its Finance Director. The Board expects revenues to be up to £500,000 lower than market expectations,which will result in a pre-tax loss for the year. The Board has identified that as part of this shortfall, revenues of up to£230,000 have been recognised earlier than they should have been, during thelast quarter of the financial year. Projects underway in October were modifiedand extended at the clients' request, but service fees continued to berecognised on the original timetable and not on the rescheduled basis. Theserevenues will now be recognised in the first half of the financial year to 31January 2008. The Board is confident that these accounting errors will have no long-termmaterial impact and that the financial and cash position of eg solutions isunaffected. The Board has accepted the resignation of Finance Director DavidBlain with immediate effect and an interim Finance Director has been appointed. The sales pipeline remains healthy and progress is being made in new territoriesand sectors. Measures have already been taken to realign the cost base, moredetails of which will be provided at the time of the Preliminary results due tobe published in March 2007. Despite this temporary setback, the Board remains confident that the Company'soffering remains highly attractive and that the Company continues to enjoy goodgrowth opportunities. Enquiries: eg solutions Rodney Baker-Bates, Chairman 01785 715772Elizabeth Gooch, Chief Executive Officer College Hill 020 7457 2020 Carl Franklin/Ben Way Brewin Dolphin Securities (Nominated Adviser) Richard Evans 0845 270 8602 About eg Solutions eg Solutions uses a combination of proprietary software and operationsmanagement methodology to deliver significant improvements in the performance ofits clients. Current operations are focused on the financial services sectorwith clients that include Norwich Union, Portman Building Society andCo-operative Financial Services. This information is provided by RNS The company news service from the London Stock Exchange