eg solutions

http://egsplc.com/ TICKER: EGS     EXCHANGE: AIM

eg solutions is a leading provider of software solutions which improve the efficiency of the corporate back office.

LATEST REPORTS

 
Board change points to strategic refocus
Published: Jun 13 2016

eg solutions is a leading provider of software solutions which improve the efficiency of the corporate back office. It has sold over 100,000 licenses worldwide to major companies in industries including financial services, healthcare, telecoms and retail, as well as outsourcers and local government. 
EGS confirmed this morning that it expects shortly to be able to announce Nigel Payne's appointment as its new chairman (subject to NOMAD due diligence), and that four existing board members, including the FD and three non-execs, have resigned. The FD will remain in place and assist an orderly transition to a replacement when found. 
Nigel Payne has a 30 year plus track record as a director of both listed and private companies and his quoted sector experience includes current roles as Chairman of AIM-listed Gateley (Holdings) plc and Stride Gaming plc, and director of Gama Aviation plc. He was previously CEO of Sportingbet plc, one of the world's largest internet gambling companies. 
From a practical perspective the executive team i.e. EGS founder Elizabeth Gooch as CEO and outgoing CFO Jonathan Kay is still in place providing temporary continuity. The addition of a highly experienced listed company director would be positive and our inference (not confirmed in the RNS) is that Nigel Payne would rapidly seek to reinvigorate the focus on profitable sales growth.
Just last week, on 9 June, EGS maintained its expected adjusted profit guidance for the current year and if it achieves our current forecasts we regard the shares as very attractively rated. 
 
View the Results Webinar
Published: Mar 24 2016

You can now hear Elizabeth Gooch, CEO, present the FY16 results on behalf of eg solutions and answer investors questions.
To view simply click on the video below.
 
Hitting the straps
Published: Mar 23 2016

eg solutions is a leading provider of software solutions which improve the efficiency of the corporate back office. It has sold over 100,000 licenses worldwide to major companies in industries including financial services, healthcare, telecoms and retail, as well as outsourcers and local government.
Results to end January 2016 confirm delivery against core strategic targets. A £3.1m equity issue in January 2015 funded investment in software, and in-house sales & marketing capabilities. That enabled eg to (a) launch significant enhancements to its product lines in September and (b) grow the order book across the year.
Minimal headline growth concealed a material improvement in recurring revenues, which adds to earnings visibility and quality. Recurring revenues grew 35% y-o-y while the order book of multi-year contracts currently stands at £17.4m, to be recognised over the next four years.
With costs under control and initial investment in product development broadly complete, that structure points to faster growth in adjusted profit and EPS.
Indeed, based upon the operational leverage inherent in a combination of higher recurring revenues and recent shift to higher margin products, underpinned by the certainty provided by the order book, we maintain our view of intrinsic value at c. 100p/share, nearly twice the current level. 
NB a recording of the CEO's webinar is now available on the ED site
 
Earnings outlook intact
Published: Mar 09 2016

eg solutions (eg) is a leading provider of software solutions which improve the efficiency of the corporate back office. It has sold over 100,000 licences sold worldwide to leading organisations in financial services, outsourcing, healthcare, government, utilities, telecoms and retail.
Their announcement today put in context the news that one of its resellers, Aspect Software Inc. had submitted a petition for bankruptcy protection in the US. That potentially provides Aspect with time to refinance/restructure existing debt and equity.
It should, however, have no impact on eg's earnings outlook, according to its management's initial assessment. Since February 2013 eg has had a strategic partnership with Aspect and what was initially a 3 year reseller agreement, the latter renewing annually unless terminated by either party.
eg will make comment further as appropriate. Regarding market communication, the next relevant date is 23 March 2016, when it is due to announce full year results for the year to end Jan 2016. 
The above developments do not impact our earnings forecast or view of intrinsic value at c 100p/share. That's underpinned by a growing order book, improved delivery vs sales targets and an operationally leveraged financial model which will mean higher revenues result in a step up in profit/EPS. 
 
eg solutions - Equity Development Investor Forum January 2016
Published: Feb 02 2016

Elizabeth Gooch, CEO, gives an overview of eg solutions and explains how they are transitioning into a period of high growth.
 
Behind every successful company..
Published: Jan 26 2016

eg solutions is a leading provider of software solutions which improve the efficiency of the corporate back office: it already provides industry-leading workforce optimisation solutions for c. 50 global brands and over 100,000 users worldwide.
The company extended the functionality of its product suite this year to enhance its appeal to a large, loyal client base which already included leading financial services, utilities, telcos and business process outsourcers. New management and sales teams have embarked on an energetic marketing push, already reflected in growth in the order book (recurring revenues) from £6m in 2013 to £17.1m currently.
A recent update confirmed that adjusted FY14/15 pre-tax profit will be breakeven, in line with forecasts. It will be achieved on lower than anticipated revenues as certain sales under negotiation will now complete early in FY 16/17, but it added another 11% to the order book since September. Significant new business this year include new utilities verticals, first wins in telecoms and Local Government, and the insurance division of a challenger bank. Net cash at end January was £3m.
The shares at 53p are trading materially below our view of intrinsic value at c. 100p/share, supported by a growing order book and increasing evidence that new management can access the full potential. The valuation assumes that operational leverage inherent in the financial model translates into a step up in profit/EPS on the back of revenue contributions from a growing order book, which provides three to four years' visibility.

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