News blog

eg solutions

BY: Andrew Hore |
POSTED: 23/03/2012 |
COMMENTS: Add yours

Back office optimisation software supplier eg solutions was hit by delayed orders last year but the company has got off to a strong start in this financial year as these orders arrive.

A third party component of the Nuqleus data capture software was replaced and this meant that sales did not come through in the second half. It also meant that R&D spending increased from £646,000 to £861,000. Five orders have been gained and two made some contribution to last year. The latest contract win is with a large international bank , which initially covers 3,250 users but could be many times that number.

Revenues fell from £5.15m to £4.71m in the year to January 2012, while underlying profit slumped from £451,000 to £146,000.

Recurring revenues account for 49% of total revenues.

At the end of January 2012, there was £64,000 in the bank but since then there has been a significant cash inflow. There is also a convertible loan note of £141,000 which is repayable in the autumn.

At 60.5p a share, eg solutions is valued at £8.65m.

The company has switched nominated adviser and broker from Arbuthnot to Panmure Gordon but there is no profit forecast yet.

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