19th Mar 2014 11:03
LONDON (Alliance News) - EG Solutions PLC posted a widened pretax loss as revenue declined and gross margin dropped in the year ended January 31.
The back office optimisation software company also named a new non-executive chairman.
EG Solutions posted a pretax loss of GBP1.5 million, widened from a pretax loss of GBP458,000 in the previous year, as revenue declined to GBP4.5 million from GBP5.0 million and administrative expenses rose.
Revenue declined to GBP4.2 million from GBP4.6 million in the UK and to GBP260,000 from GBP395,000 in South Africa.
Gross margin was 45.8%, down from 49.7%, due to the cost of pilot schemes with potential customers and investment in expanding the company's client implementation teams, EG said. This, combined with exceptional remuneration costs of GBP343,000, contributed to the widened loss.
The company expressed confidence in its prospects for 2014, citing a large proportion of its expected revenues that are already under contract and its pipeline of further opportunities.
The company announced that it had appointed Duncan McIntyre as non-executive chairman. Acting Executive Chairman Elizabeth Gooch will continue in her role as acting chief executive officer.
McIntyre was previously chief executive of Morse PLC and chair of Monitise PLC.
EG Solutions also announced Wednesday that it had won a contract with a further utilities sector customer, Business Energy Solutions Ltd, to implement its operational intelligence software across its Operations and Debt Management teams. Revenue from the licences will be recognised in the current financial year, EG said.
Shares in EG were trading up 10% at 48.60 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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