eg solutions plc (AIM: EGS), the back-office workforce optimisation company, is pleased to announce an update on trading for the year ended 31 January 2017.
Trading in the second half of the financial year has been strong, generating record revenues for the six months of not less than £5.69m (H1: £2.50m) and yielding adjusted EBITDA of over £2.0m (H1: loss of £0.89m). Cash at the end of the period was at least £2.40m. Accordingly, the Board anticipates that the Company’s financial results for the full year will be in line with market expectations on revenues of not less than £8.19m and an adjusted EBITDA of over £1.20m.
In line with its strategy to expand into other verticals and to broaden its distribution channels the Board is also pleased to report that the Company has:
- signed several major new contracts with global firms in America, Asia and Europe; and
- signed a new Master Services Agreement with a leading Business Process Outsourcer
(“BPO”). Under the terms of this contract the Company’s eg operational intelligence® software will be marketed within the Utilities sector as part of an integrated solution to improve the operational performance of existing and new clients of the BPO. The agreement has already yielded an immediate deployment of licences worth circa £762,000 within the UK’s largest energy supplier.
The Company’s continued focus on multi-year hosting deals now provides for a record contracted forward revenue order book as of 31 January 2017 of £18.50m (H1: £16.20m). The Company will be announcing its results for the year ended 31 January 2017 on 22 March 2017.
Commenting on the results, Nigel Payne non-executive Chairman said: “At the beginning of the second half of the financial year, the Board embarked upon a strategy to profitably scale the business through increased focus on sales, broadening and increasing the Company’s distribution channels and efficiency deploying internal resources. “I could not be more pleased with how the Chief Executive and her management team have embraced and risen to this challenge. The management team is highly focused and there is now real momentum within the business whilst at the same time our customers continue to provide excellent feedback on our products.
“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. “I look forward to updating shareholders in March."
eg solutions is a back office workforce optimisation software Group. eg pioneered this new market space and developed the most complete, purpose built workforce optimisation software for back offices - the only solution that manages work, people and end-to-end processes wherever they are undertaken, anywhere in the world.
eg solutions' software is now used by leading UK, international and global companies in multiple industry sectors including financial services, healthcare and utilities. Using its forecasting, scheduling, real-time work management and operational analytics capabilities, eg delivers measureable improvements in service, quality, productivity and regulatory compliance. When supported by eg's implementation and training services eg guarantee a return on investment in short time scales.
The Group is listed on AIM, the London Stock Exchange's international market for smaller growing companies (EGS).