News blog

eg solutions

• BY: Andrew Hore |
• POSTED: 06/12/2013 |

John O’Connell has resigned as a director of back office optimisation software supplier eg solutions.

O’Connell took on the role of chairman and chief executive just over 11 weeks ago. His departure was described by George O‘Connor of Panmure Gordon as being “due to a mix of business and personal reasons”. The share price slumped 13p to 77.5p, which values eg solutions at £12.4m.

Founder and former boss Elizabeth Gooch will become acting executive chairman. A chairman and a chief executive are being sought.

The company has announced a new managed services contract with a major third party outsourcing company. The contract is worth £750,000 over three years with £300,000 recognised in this financial year. These type of contracts improve revenue visibility.

An interim loss was reported in September and eg solutions is forecast to make an underlying loss of £760,000 in the year to January 2014, and then a £365,000 loss in the following year. There was £405,000 in the bank at the end of July 2013 so eg solutions may need to raise more cash if it makes the expected losses.

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