18 Aug 2010 07:00
| IMMEDIATE RELEASE | 18 August 2010 |
eg solutions plc
Trading update
eg solutions plc ('eg' or 'the Company'; LSE-AIM: EGS), the back office optimisation software company, is pleased to issue a period-end trading update for the six months ended 31 July 2010.
During the period, having established a strong platform for growth, eg has continued to expand profitably as well as making further progress with the strategic development of the Company. A key development during the period was the acquisition in March and subsequent successful integration of XTAQ Limited, a developer and supplier of business performance measurement software.
The financial performance for the period was in line with the Board's expectations, with revenues up 15 per cent. on the same period last year to £2.41 million (H1 2009: £2.09 million) and profit before tax and acquisition costs ahead of last year. The growth in underlying profitability resulted in an increase in net cash to £0.7 million at 31 July 2010 (31 July 2009 : £0.6 million).
Overall, 71 per cent of anticipated revenues for the full year are under contract.
Growth in revenue reflects the efforts made to broaden and deepen existing customer relationships, as well as the result of new customer wins, with a significant benefit to recurring revenues. The Company's achievements during the first half include:
·; a contract extension with one of the largest bancassurance groups in the Nordic region, for the use of the eg operational intelligence® suite in its Customer Services division, following the successful implementation of an initial project in the Claims Areas of the same group during the second half of 2009;
·; following the sale of an enterprise-wide software licence, a significant additional order from Nationwide Building Society for support and implementation services associated with roll-out across all back office functions;
·; the roll-out, by a major UK life and pensions company, of eg's operational management software, to a further 400 staff, to support improved capacity and work flow management and to provide consistent operational management information, and taking the total number of users to over 2,125; and
·; a contract with a new customer, one of South Africa's leading investment administration companies, to provide eg's solutions across its organisation to implement capacity planning, work and resource scheduling
These contracts are expected to have a positive impact on revenues for the second half of the current financial year with an additional benefit to full year performance expected from eg's South African office which is now trading profitably.
In June, the Company announced a contract worth £430,000, with the general insurance division of an existing eg client, for XTAQ's Nuqleus 3D software to provide management information supporting a broad range of Operational Excellence initiatives including Resource Optimisation, Process Excellence and Continuous Improvement, through a phased deployment to 2,500 users. In addition, XTAQ's existing sales pipeline is converting as expected with total contracted revenues for the year so far of approximately £750,000.
eg's growing reputation within the financial services industry and the excellent performance of its software and solutions, was also recognised in May when the Company received an Accredit UKquality accreditation.
Date of interim results announcement
The Company expects to announce its unaudited interim results for the six months ended 31 July 2010 on Wednesday, 22 September 2010.
END
| eg solutions plc | 01785-715772 |
| Elizabeth Gooch, Chief Executive Officer | www.eguk.co.uk |
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| Bankside | 020-7367-8888 |
| Simon Bloomfield or Rose Oddy |
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| Arbuthnot Securities Limited | 020-7012-2000 |
| Tom Griffiths |
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About eg solutions plc
eg solutions plc is a global operations management software company. Our software provides historic, real-time and predictive Operational MI. When implemented with our training programme for managers and team leaders to use this intelligence, we guarantee improvements in operational results in short timescales.
The Company, which is listed on the Alternative Investment Market ('AIM') of the London Stock Exchange, is committed to customer satisfaction and the ongoing development of its operations management solutions.