eg Solutions trades in line with expectations
FINANCIAL software supplier eg solutions has said first half trading was in line with expectations with revenues up 15%, supporting the company’s platform for growth.
Compared to the first six months of last year, revenue for the Staffordshire-based firm grew from £2.09m to £2.41m with pre-tax profits ahead of last year.
eg said the growth in revenue reflected the efforts made to broaden and deepen existing customer relationships, as well as the result of new customer wins, with a significant benefit to recurring revenues.
In a trading update, the company said: “During the period, having established a strong platform for growth, eg has continued to expand profitably as well as making further progress with the strategic development of the company.
“A key development during the period was the acquisition in March and subsequent successful integration of XTAQ Limited, a developer and supplier of business performance measurement software.”
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The growth in underlying profitability resulted in a net cash increase to £0.7m, compared with £0.6m in the same period last year. It also said that 71% of anticipated revenues for the full year were now under contract.
The company said key highlights had included a contract extension with one of the largest bancassurance groups in the Nordic region and following the sale of an enterprise-wide software licence, a significant additional order from Nationwide Building Society for support and implementation services.
It also secured a deal with a major UK life and pensions company for the use of its operational management software, while its overseas operation won a contract with one of South Africa’s leading investment administration companies to provide solutions software.
“These contracts are expected to have a positive impact on revenues for the second half of the current financial year with an additional benefit to full year performance expected from eg’s South African office which is now trading profitably,” added the statement.
In June, the company announced a contract worth £430,000 with the general insurance division of an existing eg client for XTAQ’s Nuqleus 3D software to provide management information supporting a broad range of Operational Excellence initiatives. In addition, it said XTAQ’s existing sales pipeline was worth around £750,000.
The company publishes its interim results for the six months to July 31, 2010 on September 22.
