EG Solutions on the up as full-year revenue to be in line with expectations

13th Feb 2017 10:02

(ShareCast News) - Shares in EG Solutions soared on Monday as the back office software company anticipates that revenue for the year will be in line with expectations after the implementation of its strategy to profitably scale the business.At the beginning of the second half of the year, the company embarked on a strategy to profitably scale the business through a focus on sales, broadening and increasing its distribution channels and efficiency deploying internal resources.This resulted in "strong" trading in the six months ended 31 January, as the company generated record revenue for the period of no less than £5.69m, up from £2.5m compared to the previous year, and yielded adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of over £2m, up from £890,000.Cash at the end of the January was at least £2.4m.Subsequently, EG Solution expects its results for the full year to be in line with expectations on revenue of no less than £8.19m and an adjusted EBITDA of over £1.2m.During the year, the company signed several new contracts with firms in the US, Asia and Europe, as well as a new master services agreement with a business process outsourcer, which has already yielded a deployment of licences worth about £762,000 with the UK's largest energy supplier.Multi-year hosting deals have now provided a record contracted forward revenue order book of £18.5m, up from £16.2m last year.Non-executive Nigel Payne said: "The second half of the financial year was busy and the board is encouraged by the company's performance. We are delighted with the successful signing of a number of high-profile contracts and our pipeline as we enter the new financial year is strong."Shares in EG Solutions were up 25.12% to 51.30p at 0819 GMT.