Financial software firm eg solutions sees interim profits rise 92%
FINANCIAL software supplier eg solutions has announced strong interims, driven by a 10% increase in revenue.
The Staffordshire-based firm said pre-tax profit for the first six months of the year had also risen 92% compared with the same period last year.
The company has attributed the strong performance to growth in South Africa and the delivery of projects won at the end of its last financial year.
Figures announced today show revenue reached £2.659m for the six months to July 31, 2011 (2010: ££2.411m), an increase of 10.3%. Pre-tax profit before exceptional items was £279,000 (2010: £145,000), an increase of 92.4%.
Basic earnings per share rose 220% to 1.6p (2010: 0.5p). Additionally, there was a 19% rise in cash reserves at the period end, compared with last year, once total expenditure of £0.73m on investment in product development had taken place, together with the purchase of shares by the Employee Benefit Trust. There was also a 63% increase in operational cashflow.
The firm said the period had also seen substantial progress in the development of core software products which, when completed, would expand eg’s customer base and strengthen its leading market position.
It also benefited from the strengthening of its core back office workforce optimisation market as a result of financial institutions looking to improve operational control and minimise their costs.
Rodney Baker-Bates, non-executive chairman, said: “The demand for back office optimisation solutions continues, with existing and new customers, both in the UK and internationally, responding positively to our existing products as well as those we are developing.
“Given the proportion of anticipated revenues contracted, and with the sales pipeline growing, we remain confident of our prospects for the remainder of the financial year.”
