Software firm remains upbeat despite slower sales and US problems

SOFTWARE company eg Solutions expects its performance to continue to improve despite the impact of slowing sales in the UK and the crisis at its US partner which has seen it file for bankruptcy protection.

It reached a break-even position on sales of £7.6m in the year to January 31, but the company highlighted its underlying growth and increased demand for its products.

The previous financial year had benefitted from one-off sales of £1.1m, while it said that towards the end of the period a number of sales “did not close as expected resulting in lower than expected revenues”.

Duncan McIntyre, chairman of eg Solutions, said the company had “continued to strengthen its market position and establish a platform for sustained profitable growth” during the financial year.

He added: “Market demand, together with our ability to develop and deliver products which meet our customers’ needs, provides a firm foundation for the group.”

Earlier this month Aspect Software, which has a 9.5% equity interest in eg, filed for Chapter 11 bankruptcy protection in Delaware, United States.

It is seeking approval to restructure its near $800m debt burden and to offer a fully underwritten rights offering of $60m of first-lien debt.  However eg Solutions has said it does not expect Aspect’s problems to impact on its own performance.