EG Solutions (EGS) has said it expects its first-half revenues to grow to about £2.3 million, in line with market expectations.

The Staffordshire software firm attributed the improved profitability to cost savings implemented throughout 2007.

The company, which has recently moved to a new site at Dunston Business Village between Stafford and Penkridge, also said it had made solid progress in achieving the turnaround promised to shareholders.

In a statement, the company said: “In an update statement issued at our Annual General Meeting on June 17, 2008, we reported that trading in the current financial year had been positive. This trend continued for the remainder of the period.

“Our interim results are expected to show growth in revenue in line with market expectations to approximately £2.3 million (H1 2007: £2.07 million), with the cost savings implemented throughout 2007 resulting in improved profitability.”

“We remain committed to this strategy for the second half of the current financial year and beyond,” it added.

The company said it was also pleased to announce that another Proof of Concept project had been signed since the end of the period with a major short-term assurer in South Africa.

The company is increasingly focused on opportunities in the emerging markets, especially South Africa but also in India.

“This contract win demonstrates continued expansion within the territory,” added the statement. In South Africa the firm said it had identified around one thousand potential users of its software.

The company’s first half results will be published on September 24.