Half Yearly Results for the Six Months Ended 31 July 2008

eg solutions plc (“eg solutions” or “the Company”; LSE-AIM: EGS), the business software application vendor, is pleased to announce its unaudited half yearly results for the six months ended 31 July 2008.

Key points:

• Revenue increased 10% to £2.27 million (H1, 2007: £2.07 million).
• Gross margins were 59.1% (H1, 2007: 65.1%).
• Turnround to profitability in three periods – as promised to shareholders – with pre-tax profit of £0.05m (H1, 2007: loss before tax: £0.64m)
• Earnings per share were 0.4p (H1, 2007: loss per share: 3.3p).
• Positive cash flow generation from operations during the half year of £0.6m (H1, 2007: cash outflow of £0.8m) with net cash balances of £1.2m at 31 July 2008.
• Cost reductions implemented in 2007 flowed through to the bottom line. Costs now below pre-IPO levels.
• Investment in R&D was £0.3m (H1, 2007 : £0.3m).
• Appointment of Violetta Parylo as Finance Director.
• New Proof of Concept contract wins in major Financial Services companies in South Africa.

Please click here to download the full announcement.

CONTACTS

eg solutions plc
Elizabeth Gooch, Chief Executive Officer
Violetta Parylo, Finance Director
Tel +44 (0) 1785 715772

Bankside
Steve Liebmann or Andy Harris
Tel +44 (0) 207 367 8888

Brewin Dolphin Ltd (Nominated Adviser)
Richard Evans, Director Corporate Finance
Tel +44 (0) 845 213 4853