Software firm on track to break even
Staffordshire-based office software company EG Solutions says it is on track to break even this year, thanks to a return to profit in the last six months.
The return to break even, in line with market expectations, comes despite a number of sales not completing before the end of its financial year, on January 31. As a result, revenues will be lower than expected.
But the company says the sales remain in its pipeline and are under negotiation.
Turnover for the year is still up by around 13% to £4 million for the second half of the year, and EG Solutions expects its full year sales to be around £7.6 million – marginally up on last year's £7.54m. It benefited from around £1 million of one-off sales during 2015. Excluding those, underlying sales growth rose around 16% over the last 12 months.
Eg Solutions, headed by founder Elizabeth Gooch, provides back-office software to enable companies to keep track of their operations and customer service processes. Its software is used by leading UK, international and global companies in sectors including financial services, healthcare and utilities.
It is based at Dunston Business Village but said last year it was looking for a new home in the area after major recruitment left it 'bursting at the seams'. It has around 60 of its 90 staff based at Dunston, near Penkridge.
In its trading statement EG Solutions said: "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 £3m at the year end."
It is continuing to focus on 'hosting deals' that run over several years and says its contracted order book had risen by 11% between September and the end of December, from £15.4m to £17.1m. "Our growing order book provides greater security to the business over the medium term."
