During the period, having established a strong platform for growth, eg has continued to expand profitably as well as making further progress with the strategic development of the Company. A key development during the period was the acquisition in March and subsequent successful integration of XTAQ Limited, a developer and supplier of business performance measurement software.

The financial performance for the period was in line with the Board’s expectations, with revenues up 15 per cent. on the same period last year to £2.41 million (H1 2009: £2.09 million) and profit before tax and acquisition costs ahead of last year. The growth in underlying profitability resulted in an increase in net cash to £0.7 million at 31 July 2010 (31 July 2009 : £0.6 million).

Overall, 71 per cent of anticipated revenues for the full year are under contract.

Growth in revenue reflects the efforts made to broaden and deepen existing customer relationships, as well as the result of new customer wins, with a significant benefit to recurring revenues.  The Company’s achievements during the first half include:

• a contract extension with one of the largest bancassurance groups in the Nordic region, for the use of the eg operational intelligence^® suite in its Customer Services division, following the successful implementation of an initial project in the Claims Areas of the same group during the second half of 2009;
• following the sale of an enterprise-wide software licence, a significant additional order from Nationwide Building Society for support and implementation services associated with roll-out across all back office functions;
• the roll-out, by a major UK life and pensions company, of eg’s operational management software, to a further 400 staff, to support improved capacity and work flow management and to provide consistent operational management information, and taking the total number of users to over 2,125; and
• a contract with a new customer, one of South Africa’s leading investment administration companies, to provide eg’s solutions across its organisation to implement capacity planning, work and resource scheduling

These contracts are expected to have a positive impact on revenues for the second half of the current financial year with an additional benefit to full year performance expected from eg’s South African office which is now trading profitably.

In June, the Company announced a contract worth £430,000, with the general insurance division of an existing eg client, for XTAQ’s Nuqleus 3D software to provide management information supporting a broad range of Operational Excellence initiatives including Resource Optimisation, Process Excellence and Continuous Improvement, through a phased deployment to 2,500 users.  In addition, XTAQ’s existing sales pipeline is converting as expected with total contracted revenues for the year so far of approximately £750,000.

eg’s growing reputation within the financial services industry and the excellent performance of its software and solutions, was also recognised in May when the Company received an Accredit UK quality accreditation.

Date of interim results announcement

The Company expects to announce its unaudited interim results for the six months ended 31 July 2010 on Wednesday, 22 September 2010.

-Ends-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Simon Bloomfield or Rose Oddy

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

Work will commence immediately and it is expected that the majority of revenues contracted will be recognised in the current financial year.

Elizabeth Gooch, Chief Executive Officer, commented:

“We are delighted to have won this contract, the first since eg acquired XTAQ.  It underpins our confidence in the sales potential of Nuqleus 3D, identified when we bought the business, and strengthens our position to deliver profitable growth over the next year and beyond.  In addition, the complementary product set acquired through XTAQ will enable eg to satisfy the growing demand for real-time data capture”.

 -Ends-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Simon Bloomfield or Rose Oddy

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

“When we reported results for the year ended 31 January 2010, we indicated that, having returned to profit after three tough years, eg was well placed to deliver growth for the current year and beyond.  I am delighted to report that the Company’s trading performance for the first quarter of the current financial year continues to support that optimism.

Our ability to sell our products and services more widely and deeply across our customer base is resulting in strong recurring revenues which, combined with new customer wins, gives us a solid order book with approximately 60% of anticipated revenues for the year to 31 January 2011 already contracted.

Our South African subsidiary has made a strong start to the year.  Implementation of the £525,000 contract, signed in April 2010, with one of South Africa’s leading investment administration companies, is now underway and we are actively pursuing other opportunities.  We anticipate that our South African business will make a positive contribution to profit for the current financial year.

Expectations for the current year are further underpinned by an encouraging performance by XTAQ, the business performance measurement software and associated services company, we acquired in March 2010.  Integration is progressing well and there are good indications that the sales pipeline of its Nuqleus 3D product will convert as expected.

The strong trading performance has resulted in positive cashflow so far in the current year, with net cash deposits of approximately £0.74m at 25 May 2010 up from approximately £0.4m at 31 January 2010.

Overall, we remain confident that eg is well placed to deliver profitable growth for the current year and beyond.”

- ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Simon Bloomfield or Rose Oddy

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

The meeting will commence at 10.30am on Wednesday 26 May 2010. The Company will be writing to all its shareholders to notify them of the change of venue.

-ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

eg solutions plc (the “Company”: AIM: EGS), the back office optimisation software company,  announces that copies of its annual report and accounts for the year ended 31 January 2010 have been posted to shareholders and are available on the Company’s website: www.eguk.co.uk.

-ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

The new customer is one of South Africa’s leading investment administration companies, providing back office outsourced services to many South African investment companies with some £24 billion of assets under administration.  Employing over 300 people, the customer will be using eg’s solutions across its organisation to implement capacity planning, work and resource scheduling.

The contract is valued at approximately £525,000 at current exchange rates and is expected to be recognised during the current year.

Elizabeth Gooch, Chief Executive Officer, commented:

“This latest contract demonstrates our continued penetration of the South African market and the value of our solutions to back office outsourcers..”

-ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

eg solutions plc ( “the Company”; LSE-AIM: EGS), the back office optimisation software company, was notified today that Elizabeth Gooch, Chief Executive Officer of the Company, has granted a charge over 3,000,000 ordinary shares of 1 pence each in the Company (”Ordinary Shares”), representing approximately 20.1 per cent. of the Company’s issued share capital, as security against a bank loan made to Elizabeth Gooch.  This charge is in addition to the one granted by Elizabeth Gooch over 2,000,000 Ordinary Shares and which was announced on 29 July 2009.

Elizabeth Gooch remains the beneficial owner of all of these Ordinary Shares which are subject to a charge and retains the associated voting rights which represent approximately 36.9 per cent. of her beneficial holding, including family interests.

As a result, Elizabeth Gooch’s beneficial interest in the Company remains unchanged at 8,128,720 Ordinary Shares, representing approximately 56.9 per cent. of the Company’s issued share capital.

-ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

Financial Highlights:

• Revenue increased 13 percent to £4.2m (2009: £3.7m)

• Pre-tax profit of £0.1m (2009: loss of £0.8m)

• Positive cash generation with net cash at year end of £0.4m (2009: £0.3m)

• Costs further reduced by £0.4m (9 percent) on prior year

Operational Highlights:

• New contract wins include Nationwide Building Society, Legal & General, one of the largest Nordic bancassurance groups and the healthcare division of one of South Africa’s leading financial services groups

• Awards won:

-    Technology vendor with the ‘Most Innovative Financial Services Solution’ at the prestigious IFS Financial Innovation Awards 2009; and

-    Highly commended in the Best Added Value Project category of the ICT Excellence Awards

• Post-year end, announced acquisition of XTAQ for up to £0.23m adding blue chip customer base, complementary products with an encouraging sales pipeline

On Current Trading and Outlook, Rodney Baker-Bates, non-executive Chairman stated:

“In recent months new orders signed with existing customers have demonstrated eg’s ability to sell more deeply and widely into our existing customer base.  We have started this year with a solid order book which, together with contracted recurring revenues, account for over 50 percent of our expected revenues for the year (excluding XTAQ) as at today’s date.

“The acquisition of XTAQ should be earnings enhancing in the current year, based on contracted recurring revenues and expected immediate product sales.  XTAQ has a significant sales pipeline; if satisfactory progress can be achieved in converting these prospects into firm orders, the potential for the enlarged group is good.

“After a very tough three years, eg is now well placed to deliver growth over the next year and beyond.”

Download the full announcement

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

Founded in 1993 XTAQ is a privately owned business based in Bristol employing eight people.    XTAQ has developed its Nuqleus business performance measurement software which it distributes with support services to deliver improved operational performance and effectiveness.  Customers deploy Nuqleus strategically throughout the enterprise or as a point solution to address particular operational management information requirements. XTAQ is currently deploying the latest version of its software product, Nuqleus 3D, and has created long-term relationships with its customers which, typically, use Nuqleus within processing centres, call centres and mobile professional workforces.  XTAQ’s current customers include Aegon, Barclaycard, Citibank, GE Capital, Principality Building Society and Royal Bank of Scotland as well as a number of public sector clients.

In the year to 31 March 2009 XTAQ’s audited turnover was £0.55 million, on which it incurred a loss before tax of £0.15 million.  As at the same date XTAQ had a deficit on net assets of (£0.05m).

The consideration payable by the Company for XTAQ comprises: £33,333 in cash and the balance by the issue of up to £150,000 in 5 per cent Convertible Unsecured Loan Notes 2012 (“Loan Notes”), and up to 90,909 new ordinary shares of 1p each in the Company (“New Ordinary Shares”).  The total maximum consideration equates to the approximate level of current contracted maintenance revenues for the 12 months ending 31 March 2011.  The consideration will be adjusted on a £-for-£ basis for any actual increase in the deficit on net assets which has been estimated by XTAQ as at 28 February 2010.  On the second anniversary of their issue the Loan Notes are repayable or convertible into New Ordinary Shares at a share price of 82.5p.  The Company may require holders to convert if, for at least 20 consecutive business days, the average share price of an ordinary share in the Company shall be 82.5p. No premises or property lease liabilities are being acquired.

Following completion of the acquisition of XTAQ its employees will be granted an aggregate of up to 1,393,938 options to subscribe for new ordinary shares in the Company, at an exercise price of 55p, the closing mid-market price of an ordinary share in the Company on 10 March 2010, being the last business day prior to the acquisition.  The number of options that may be exercised will depend, on a sliding scale, on the achievement of pre-determined XTAQ revenue performance in the 12 months ending 31 March 2011 and are subject to a 4 year vesting period from the date of issue.

The Board considers that the acquisition of XTAQ brings together two companies with complementary products and customer bases.  XTAQ’s Nuqleus 3D product provides real-time data capture and additional dashboard functionality that the Company had been planning to develop for its own product range during 2010.  The combined businesses’ active client base will increase to about 40 from 25 for eg, providing increased recurring revenues and opportunities for cross-selling.  In addition, XTAQ’s sales, development and implementation staff will strengthen the Company’s existing team.

Elizabeth Gooch, Chief Executive Officer, commented:

“We believe that the acquisition of XTAQ is an excellent ‘bolt on’ to eg.  It strengthens our position in the back office optimisation market, extends our product range, expands our customer base and adds to our recurring revenues. Furthermore, we consider that the sales prospects for Nuqleus 3D will be significantly improved by XTAQ being part of a larger and stronger business.“

Application will be made for the New Ordinary Shares to be admitted to trading on AIM once the final consideration and the number of shares to be issued has been determined.

-ENDS-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.

-Ends-

Contacts

eg solutions plc
Elizabeth Gooch, Chief Executive Officer

01785-715772

www.eguk.co.uk

Bankside

Steve Liebmann, Simon Bloomfield or Andy Harris

020-7367-8888

Arbuthnot Securities Limited
Tom Griffiths

020-7012-2000

About eg solutions plc

eg solutions plc is a global back off ice 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.