News blog
eg solutions
- BY: Andrew Hore |
- POSTED: 24/03/2010 |
A much-improved second half performance helped eg solutions to return to profit in the year to January 2010.
The operations management software supplier reported a 13% increase in revenues to £4.15m. A loss of £753,000 was turned into a profit of £99,000. Higher gross margins and cost cutting were behind the improvement. More software licences were sold in the most recent period.
It was recently announced that eg solutions is acquiring XTAQ for up to £233,000. XTAQ lost money in its last full financial year but it should not hold back eg solutions’ profits this year.
There was net cash of £410,000 at the end of January 2010 but £33,000 of that will have been used on the XTAQ acquisition. Up to £150,000 of the payment is in the form of convertible unsecured loan notes and the rest in shares.
XTAQ’s data capture software fits well with the group’s software and eg solutions would have needed to develop its own. There are cross-selling opportunities and XTAQ will also be part of a much stronger financial group which will make it easier to gain new customers.
The group has already contracted 52% of expected revenues for 2010-11. New contract wins with Legal & General, Nationwide Building Society and Vital Forsikring in Norway have given the company a good start to the year. House broker Arbuthnot Securities has edged up its 2010-11 profit forecast to just over £300,000.
At 54.5p a share, eg solutions is valued at £7.79m.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|