23rd Sep 2015 09:23
LONDON (Alliance News) - EG Solutions PLC said Wednesday it swung to a loss in the first half due to lower revenue, but the back-office software company said it now expects to achieve breakeven for the full year as its order book and revenue visibility strengthened.
EG said its pretax loss for the half to the end of June was GBP330,000, compared to a GBP620,000 profit a year earlier. Revenue was down to GBP3.6 million from GBP4.0 million, mostly due to one-off deals it won a year ago not repeating. The loss was also driven by investments the company made in its product portfolio, and it has now launched its EG Forecasting and EG Mobile products.
The company said its order book has strengthened in the first half, with its multi-year contract order book now at GBP15.5 million, up from GBP13.0 million a year earlier.
"The business has developed in line with our strategy of driving growth and further enhancing our market position in the expanding back office optimisation market. We have invested in both sales and marketing as well as developing two flagship products. These products will extend our market leading position and the board is excited about the opportunities they present," said Duncan McIntyre, EG's chairman.
"We have strong visibility and a building order book and look forward with confidence to the rest of 2015 with full year expectations now ahead of previous guidance," McIntyre added.
Shares in the company were down 3.0% to 65.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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