Software supplier set for return to profit

A FINANCIAL services software supplier has forecast a return to profit after enjoying sustained trading during the second part of last year.

Staffordshire-based eg Solutions (EGS) said in its trading update today that the positive trends were likely to generate full year revenues of £4m, up by £0.3m on a year earlier.

This was likely to produce a small profit compared with a loss before tax of £0.75m in the previous year.
 
The AIM listed firm said its net cash deposits as at January 31 were £0.4m which compared with £0.6m in July and £0.3m last January.
 
During the year, eg has won a series of orders from major ‘blue chip’ financial services companies in the UK and internationally.  UK contract wins included several orders from one of the leading life and pensions providers and Nationwide Building Society, culminating in the recent contract for an enterprise-wide software licence.  

International contract wins include one of the largest bancassurance groups in the Nordic region and a leading financial services company in South Africa.  All of these contracts include initial licence fees and a provision for ongoing support and services.
 
The company, which recently received industry recognition for its products at the Financial Innovation Awards 2009, said it had a solid pipeline of potential sales and was expected to benefit from recurring maintenance revenues and the sale of additional services and licences to existing customers.
 
The company expects to announce its final results for the year ended January 31 on March 24.