Contract win for eg solutions as it reports positive outlook
STAFFORDSHIRE back-office optimisation software supplier eg solutions has won a new contract with an unnamed existing client which it says could provide revenue in excess of £1.2m.
The contract win is said to be with a major third party outsourcing company.
The announcement coincides with the Dunston-based firm releasing an interim trading statement for the six months ended July 31.
It said that trading during the period continued strongly and the firm now expects to report financial performance for the full year to 31 January 2015 ahead of current market expectations.
The firm said there has remained a strong market for eg’s product suite during the first half of the year and it expects the market opportunity to grow during the second half and beyond.
eg secured nine new contract wins from new and existing clients during the first half, contributing to its recurring and repeat revenue base and a forward order book of £13m.
The company expects to report revenues for the first half of approximately £4m and profit before tax above £0.6m. On 31 July it had a gross cash balance of £0.8m.
eg said it intends to continue to reinvest during the course of the current financial year into growing its operational structure, expanding its revenue pipeline and capitalising upon the market opportunity.
Elizabeth Gooch, acting CEO of eg, said: “We are pleased to report that the confidence we have in the market opportunity is being borne out by performance during the first half, and that the outlook is sufficiently positive to lead us to revise our expectations of performance for the full year.
“Our board and management team are making tangible progress in seizing the emerging market for back office optimisation and improving the operational performance of the company.
“We are developing a robust platform for growth and continue to enhance our software which is already identified as the leading product and industry standard in back office optimisation.”
