Software firm tells shareholders it’s jam tomorrow

STAFFORDSHIRE back office software supplier, eg solutions has braced shareholders for a lower-than-expected first half.

However, the Dunston-based firm has said it will a case of pain first followed by relief as the second half sees a major pick-up in deals development.

In a trading update, the firm said: “The board maintains its expected adjusted profit guidance for the full year to January 31, 2017 with large deal developments with channel partners and customers continuing to progress positively.

“Due to the timing of the commencement of discussions, this will mean that the first half trading performance and cash generation will be lower than previously anticipated, but we expect this to be offset by a stronger trading performance in the second half of the year.”

The firm said it had continued to drive the investment programme it started last year and it remained committed to developing its sales and marketing capability.

It said it would also be continuing its investment its product development in order to create new market opportunities.

Latest full year results show the firm achieving a break-even position on sales of £7.6m, however, it said interest in its range of back office software packages continue to generate optimism.

The company has exploited market interest by developing new clients in the telecoms, local government and retail banking sectors.