January 30, 2007
eg solutions plc (AIM: EGS), the IT software and services company, announces a further update on trading for the year ending 31 January 2007 and the resignation of its Finance Director.
The Board expects revenues to be up to £500,000 lower than market expectations, which will result in a pre-tax loss for the year.
The Board has identified that as part of this shortfall, revenues of up to £230,000 have been recognised earlier than they should have been, during the last quarter of the financial year. Projects underway in October were modified and extended at the clients’ request, but service fees continued to be recognised on the original timetable and not on the rescheduled basis. These revenues will now be recognised in the first half of the financial year to 31 January 2008.
The Board is confident that these accounting errors will have no long-term material impact and that the financial and cash position of eg solutions is unaffected. The Board has accepted the resignation of Finance Director David Blain with immediate effect and an interim Finance Director has been appointed.
The sales pipeline remains healthy and progress is being made in new territories and sectors. Measures have already been taken to realign the cost base, more details of which will be provided at the time of the Preliminary results due to be published in March 2007.
Despite this temporary setback, the Board remains confident that the Company’s offering remains highly attractive and that the Company continues to enjoy good growth opportunities.
- Ends –
Enquiries
eg solutions plc
Elizabeth Gooch, Chief Executive Officer
+44 (0)1785 715772
College Hill
Carl Franklin/Ben Way
+44 (0) 20 7457 2020
Brewin Dolphin Securities (Nominated Adviser)
Richard Evans
+44 (0) 845 270 8602
