Year-end trading update

Year-end trading update

eg solutions plc ('eg' or 'the Company'; LSE-AIM: EGS), the back office optimisation software company, announces an update on trading for the financial year ended 31 January 2012.

We are pleased to announce that, in the closing days of our financial year ended 31 January 2012, we won 5 new orders as a result of the re-engineering of our products and our investment in sales. These include 3 new customers in the financial services sector in the UK and new territories as well as expansion within existing UK and international clients. The majority of the revenue from these orders will be recognised within the current financial year. Each contract has significant potential for further roll-out and scope for recurring revenue.

During the year the Company successfully completed the re-engineering of its back office optimisation software suite. This involved replacing a third party component within the Nuqleus data capture software (acquired with XTAQ in March 2010) and integrating this into eg work manager®. This re-engineering was expected to have minimal impact on the outcome for the year ended 31 January 2012 and these software developments have been well received by both new and existing enterprise clients. However, due to undertaking pilot projects with the new product suite in order to win new contracts, as well as finalising client commitment to their roll-out, revenue and profit before tax for the financial year ended 31 January 2012 is expected to be significantly below market expectations at £4.6 million (2011: £5.1 million), with profit before tax expected to be significantly below the £0.5 million achieved last year.

Current trading is strong and this reflects demand for our re-engineered software products from both new and existing enterprise clients. We start the year with an excellent UK and international order book, which already constitutes 50% of market expectations for revenue for the current year and continues to grow.

Elizabeth Gooch, Chief Executive Officer, commented:

"Whilst we are disappointed about the impact on last year's performance as a result of re-engineering our software product suite, these developments have created strong demand from both existing and new customers in the UK and overseas. In addition to significantly strengthening our leading competitive position our new software is generating major new orders and revenues. As a result, even at this early stage, we are confident of our financial prospects for the remainder of the year."

Announcement of results

The Company will announce final results for the year ended 31 January 2012 on Thursday 22 March 2012.

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About eg solutions plc

eg solutions plc is a global back office optimisation software company. Our software provides historic, real-time and predictive Operational MI. When implemented with our training programme for managers and team leaders to use this intelligence, we guarantee improvements in operational results in short timescales.

The Company, which is listed on the Alternative Investment Market ('AIM') of the London Stock Exchange, is committed to customer satisfaction and the ongoing development of its operations management solutions.