Eg Solutions to beat current expectations for full year

20th Aug 2014 12:49

Shares in Eg Solutions, a back office optimisation software company, saw its share price jump by around a third on Wednesday after the group it now expects its full-year figures to come in ahead of market expectations. Eg said the improvement was due to continued strong trading and a significant new contract win. Looking forward, it expects the market opportunities for its products to grow during the second half and beyond. It said that it has won a new contract with an existing client, which is expected to generate revenue of more than £1.2m, of which £0.63m will be reported in the current year. The group will separately receive additional annually renewable licence revenues.Revenue for the six months to 31 July is expected to total around £4m, up from £2.2m the year before, while pre-tax profit is estimated to be above £0.6m, compared with a loss of £0.7m previously. At the end of July, the gross cash balance totalled £0.8m, up from £0.4m last year."Eg intends to continue to reinvest during the course of the current financial year into growing its operational structure, expanding its revenue pipeline and capitalising upon the market opportunity," the group said. Acting chief executive Elizabeth Gooch continued: "Our board and management team are making tangible progress in seizing the emerging market for back office optimisation and improving the operational performance of the company. We are developing a robust platform for growth and continue to enhance our software which is already identified as the leading product and industry standard in back office optimisation."Shares had climbed 29.48% to 69.92p by 12:05. NR