eg looks good for solid trading performance

SOFTWARE supplier eg Solutions has said it remains well placed to deliver growth during the current year.

In an AGM statement today, non-executive chairman Rodney Baker-Bates said that having returned to profit this year after a three year hiatus, the Staffordshire company was building on its strong first quarter and optimistic for the future.

“Our ability to sell our products and services more widely and deeply across our customer base is resulting in strong recurring revenues which, combined with new customer wins, gives us a solid order book with approximately 60% of anticipated revenues for the year to January 31, 2011 already contracted,” he said.  
 
Mr Baker-Bates said the company’s South African subsidiary had also made a strong start to the year.  

“Implementation of the £525,000 contract, signed in April 2010, with one of South Africa’s leading investment administration companies, is now underway and we are actively pursuing other opportunities.  

“We anticipate that our South African business will make a positive contribution to profit for the current financial year,” he added.
 
eg’s expectations for the current year have been boosted further with an encouraging performance by XTAQ, the business performance measurement software and associated services company, it acquired in March 2010.  

“Integration is progressing well and there are good indications that the sales pipeline of its Nuqleus 3D product will convert as expected,” said Mr Baker-Bates.
 
The strong trading performance has resulted in a positive cashflow so far this year, with net cash deposits of approximately £0.74m at May 25, up from approximately £0.4m at January 31.
 
“Overall, we remain confident that eg is well placed to deliver profitable growth for the current year and beyond,” added Mr Baker-Bates.