January 23, 2009
eg solutions plc (“eg solutions” or “the Company”; LSE-AIM: EGS), the business software application vendor, is issuing an update on trading ahead of the end of its financial year on 31 January 2009.
At the time of reporting the half-yearly results in September 2008, the Company noted that current trading was in line with management expectations. The Company also expressed its belief that ’spend to save’ projects incorporating eg solutions’ software applications would attract continued investment as the financial services sector seeks to reduce its cost base.
However, as a result of the well publicised issues affecting the financial services sector, decision times on new projects have lengthened during the past three months. Sales which had been expected to close during the current financial year will now be delayed beyond the year-end. As a result, revenue for the year to 31 January 2009 is expected to be below market expectations, resulting in a loss before tax, although this is expected to be lower than that incurred in the year to 31 January 2008. The final result will depend on the outcome of a number of customer contract negotiations which are in the process of being finalised.
Currently the Company’s pipeline of potential sales is stronger than at any time in the past 24 months and the delayed contracts are expected to contribute towards an improved performance in the first half of the next financial year when compared with the same period of the previous year.
The Company expects to announce its final results for the year in late March 2009 in accordance with its usual timetable.
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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
