eg solutions sees revenues rise 21% on strong orders
FINANCIAL software firm eg solutions has announced a 21% increase in revenues to £5.1m, with pre-tax profits up 400% based on strong demand for its back office optimisation products.
The Staffordshire company said its flow of new orders was strong and it was confident it would achieve further growth this year.
Its acquisition of Bristol firm XTAQ was also cited as a major factor in the improving performance, which saw pre-tax profits rise to £0.5m from £0.1m. Costs relating to the acquisition totalled £96,000 – the bulk being in professional fees.
The company has now been fully integrated and its pipeline converted, helping to generate £1.1m closed sales.
Positive cash generation at the year end of January 31, 2011 was £0.5m, up from £0.4m, and basic earnings per share rose to 3.7p from 0.7p. The company, keen to steal a march on competitors also invested £0.6m in R&D of new products.
eg said it was also pleased to have seen an increase in orders from its South African operation, with a number of key deals completed during the year.
Rodney Baker-Bates, non-executive chairman, said: “The momentum of last year has continued. We have a strong sales pipeline and expect to continue to win new contracts from existing and new customers, as well as benefiting during 2011/12 from contracts won last year.
“Current trading is positive, with contracted and recurring revenues accounting for 54% of our expected revenues for the year (2010: 52%).
“The board plans to build on this success and we are confident that the company will achieve further profitable growth in the coming year.”
