Record figures produce stock market spike

Investors responded favourably to an announcement of record second half growth from software firm eg Solutions.

Shares in Dunston-based business leapt more than 25% in early trading after the firm revealed it had made a dramatic recovery from a poor start to 2016. Despite it later falling back, it closed the day up 13% at 45p.

In a trading update for the year to January, the company said trading in the second half of the financial year had been strong, generating record revenues for the six months of not less than £5.69m.

Its adjusted EBITDA – a measure of operational profitability – for the six-month period was £2.50m, compared with a loss of £0.89m a year earlier. The company also revealed that it had a record contracted forward order book of £18.5m.

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 more than £1.20m. 

The company also confirmed that it had signed several major new contracts with global firms in America, Asia and Europe; and signed a new master services agreement with a leading business process outsourcer.

Broker N+1 Singer said: “eg solutions has issued a positive full year trading update indicating that results will be in line with market expectations.

“We are highly encouraged by the outlook for the business given the strength of current trading and a record order book.”

Close