eg Solutions reveals record second half after tough H1
Staffordshire back office software supplier, eg solutions, has recovered from a difficult start to 2016 by generating record second half revenues.
In the half-year to July 31, 2016 revenue at the Dunston-based company was £2.5m (H1 2015: £3.6m), with losses widening to £1.5m (H1 2015: -£0.33m).
It was further rocked by the departure of four directors, including its chairman and chief financial officer.
However, in a trading update for the year ended January 31, 2017, the second half of the financial year had been strong, generating record revenues for the six months of not less than £5.69m (H1: £2.50m) and yielding adjusted EBITDA of over £2m (H1: loss of £0.89m). Cash at the end of the period was at least £2.40m.
Accordingly, the board said the company now expected its financial results for the full year would be in line with market expectations on revenues of not less than £8.19m and an adjusted EBITDA of over £1.20m.
The company also confirmed that it had signed several major new contracts with global firms in America, Asia and Europe, and a new master services agreement with a leading business process outsourcer.
Under the terms of this contract the company’s eg operational intelligence software will be marketed within the utilities sector to improve the operational performance of existing and new clients of the outsourcer. The agreement has already yielded an immediate deployment of licences worth around £762,000 within the UK’s largest energy supplier.
The company is also in a positive mood for 2017 with a record contracted forward revenue order book of £18.50m (H1: £16.20m).
Nigel Payne, non-executive chairman, said: “At the beginning of the second half of the financial year, the board embarked upon a strategy to profitably scale the business through increased focus on sales, broadening and increasing the company’s distribution channels and efficiency deploying internal resources.
“I could not be more pleased with how the chief executive (Elizabeth Gooch) and her management team have embraced and risen to this challenge. The management team is highly focused and there is now real momentum within the business whilst at the same time our customers continue to provide excellent feedback on our products.”
eg Solutions will announce its full year results on March 22.