Strong second half boosts software group
A strong second half has helped to salvage a positive year for Staffordshire software firm, eg solutions.
The Dunston firm, which supplies back office software suites, experienced its best ever performance in the last six months of its financial year, which helped offset the slower start to the year in H1.
H2 revenues were £5.7m (H1: £2.5m) and EBITDA reached £2.1m (H1: loss of £0.9m). Total revenues for the year increased to £8.2m (2016: £7.6m) while its order book of repeat and recurring revenues grew to a record £18.5m (2016: £17.4m). This revenue will be recognised over the next four years, with the company said provided a firm foundation for sustained future revenue growth.
Partner revenues increased substantially over the year and accounted for £1.45m of total revenues (2016: £0.34m), also contributing to its growing international business which increased to 37% of total revenues (2016: 24%).
Elizabeth Gooch, CEO of eg solutions, said: “I am delighted with the performance of the business, particularly in the second half of the year. In generating revenues of £5.7m and an adjusted EBITDA of £2.1m in a six-month period, we demonstrated just what the business is capable of.
“Our realigned strategy of focusing on sales and distribution channels is paying great dividends. We have over the past few months delivered multiple new contract wins, expanded our international business, increased our partner distribution channel and achieved sales of our new mobile platform.
“There is real momentum within the business and I look forward to the new financial year with confidence.”
The company said the board’s focus on direct sales and distribution via both in-house resources and partners was beginning to reap rewards.
It said as the company entered its new financial year it was in a good position, with a solid base of which to build growth and capitalise on attractive market opportunities.
The company said it had a profitable business with excellent products, a strong track record of delivery and good growth prospects.
“Our forward contracted order book, which now stands at a record £18.55m continues to grow, providing visibility and underpinning to our financial growth targets for the future,” said chairman Nigel Payne.
“There is a real sense of momentum within the business and the board looks forward to the new financial year with renewed confidence.”
