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eg solutions loses £735,000 in second half of 2013

eg says it is a transitional period for the company and claims that a major investment in global expansion was main contributor to loss

Elizabeth Gooch

Midlands-based back office software provider eg solutions lost £735,000 in the second half of this year, compared to a £178,000 profit during the same period in 2012.

Revenue was also down at almost £2.4 million, compared to £2,845,000 in the same period of the previous year, the firm said in its interim results.

However, eg said it was a transitional period for the company and claimed that a major investment in global expansion was the main contributor to the loss.

In February, eg signed an exclusive a strategic distribution partnership, for the Americas and Asia, with Aspect Software Inc, which invested £1.25 million in the company for a 10.69 per cent equity holding.

Since then, eg has invested £500,000 in setting up Aspect’s American and Asian distribution capability, as well as in strengthening its own direct sales and worldwide delivery organisation.

This has enabled eg to target high value international projects and, already, the company’s sales pipeline has grown to a record £24 million. With a number of projects coming to fruition in the second half, the company is confident about the future. New deals have already been sealed in the UK with insurance giant LV= and utility firm nPower.

Elizabeth Gooch, who controls 46 per cent of eg, has stepped down as chief executive, remaining on the board as founder and president. John O’Connell becomes chairman and CEO.

He said: “Our financial results for this period reflect the investment we have made in the exclusive strategic distribution partnership with Aspect as well as in our own direct sales channel. The sales opportunities that have resulted from this investment underpin our confidence in making a quantum shift in the scale and scope of our business. I am looking forward to helping the group achieve this goal in my new role.”

 
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