eg Solutions PLC Regulatory News (EGS)

eg solutions plc

Trading Update

eg solutions plc (AIM: EGS), the back office optimisation software company, announces an update on current trading for the year ending 31 January 2016.The Board expects that full year results will be around breakeven (at the adjusted PBT level*) for the year ending 31 January 2016, in line with current market expectations. However, as a result of a number of sales which will not now close before 31 January 2016, this will be achieved with lower than expected revenues. The sales remain in our pipeline and under negotiation.Turnover is expected to increase by approximately 13% to around £4.0m (2015: £3.55m) for the second half of the year and we expect the full year to reflect sales of approximately £7.6m (2015: £7.54m). As previously disclosed, full year 2015 benefited from one-off sales of approximately £1m. Excluding these, underlying sales growth is approximately 16% over the last 12 months.The Company has returned to profit in the second half of the year as a result of costs being broadly in line with the first six months and the sales improvement outlined above. Our balance sheet remains strong and we expect cash to be approximately £3m at the year end.

We are continuing to focus on multi-year hosting deals and we are pleased to report that our contracted order book, as at 31 December 2015, has risen by a further 11% since September 2015 from £15.4m to £17.1m. Our growing order book provides greater security to the business over the medium term.

The Company will be announcing its results for the year ended 31 January 2016 on 23 March 2016

*Adjusted PBT is pre-tax profit, prior to costs relating to share based payments

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About eg solutions plc

eg solutions is a back office workforce optimisation software Group. eg pioneered this new market space and developed the most complete, purpose built workforce optimisation software for back offices - the only solution that manages work, people and end-to-end processes wherever they are undertaken, anywhere in the world.

Our software is now used by leading UK, international and global companies in multiple industry sectors including financial services, healthcare and utilities.

Using our forecasting, scheduling, real-time work management and operational analytics capabilities, we deliver measureable improvements in service, quality, productivity and regulatory compliance. When supported by our implementation and training services we guarantee return on investment in short timescales.

Regardless of who is serving the customer - call centre, back offices, branches or the field - our solutions provide true insight into the full customer service process and promote world-class operational management capability.

The Group is listed on AIM, the London Stock Exchange's international market for smaller growing companies (EGS).