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eg solutions

  • BY: Andrew Hore |
  • POSTED: 24/09/2008 |

Operations management software supplier eg solutions returned to profit at the interim stage.

Turnover grew by 10% to £2.27m, while a loss of £638,000 was turned in to a profit of £53,000 in the six months to July 2008. Costs have been cut and the company believes that more savings may be possible. 

There were £112,000 of one-off costs for the head office move and other exceptional charges. Without these costs the profit outcome would have been even better.

Recurring maintenance revenues were 35% of the total, while software services contributed a further 18%. Software licence sales generated 8% of total revenues. The rest comes from implementation services.

Net cash was £1.15m at the end of July 2008.

Lehman Brothers and Merrill Lynch are both customers of eg solutions but they account for less than 1% of revenues.

The shares rose 1.5p to 29p each on the release of the results. That values eg Solutions at £4.15m.

Legal & General reduced its life and pensions admin costs by 20% when the company‘s software was implemented. Nationwide Building Society identified a 30% profit improvement in the department that installed the software.

Chief executive Elizabeth Gooch suggests that some larger financial companies are thinking more seriously about investing in software that will help them cut costs. This could help the company continue to win more contracts in the UK and South Africa.

Brewin Dolphin forecasts full year profits of £200,000. The company has already secured 69% of forecast revenues of £4.6m. 

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