15th Jan 2016 08:15
LONDON (Alliance News) - EG Solutions PLC on Friday said revenue has taken a hit because a number of sales which "will not now close" before the end of January.
Despite the delays and the lower than expected revenue, the back office optimisation software company said it expects full-year results will be around breakeven in terms of pretax profit adjusted to exclude costs relating to share based payments.
Sales are expected to edge up to about GBP7.6 million in the year ended January 31, versus about GBP7.5 million the prior financial year,
As previously reported, the figures include one-off sales of about GBP1.0 million, excluding which the company reported "underlying" sales growth of about 16% over the last 12 months.
"The company has returned to profit in the second half of the year as a result of costs being broadly in line with the first six months and the sales improvement outlined above. Our balance sheet remains strong and we expect cash to be approximately GBP3.0 million at the year end," EG said.
"We are continuing to focus on multi-year hosting deals and we are pleased to report that our contracted order book, as at December 31, 2015, has risen by a further 11% since September 2015 from GBP15.4 million to GBP17.1 million. Our growing order book provides greater security to the business over the medium term," EG said.
The company will be announcing its results for the year ended January 31 on March 23.
Shares in EG were down 12% to 48.0 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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