"When good news strikes at LSE:EGS:eg Solutions, the share price reaction tends to be dramatic. And so it was on Monday when the back office software company reported a record second half and a new contract in the utilities sector. A 29% rally ..."
"A weak H1 was salvaged by a raft of large contract wins which should drive a strong H2. A strange first half was poor financially (loss-making) but encouraging operationally: three new contracts were won through the renewed JV with the US giant, Aspect Software. These include a ground-breaking deal with the worlds leading Social Network. There has also been a contract from one of the UKs largest life assurance funds; a proof-of-concept with a major Singapore financial services group; as well as repeat orders from UK BPOs and a large European Investment Bank. With those secured, it is now a matter of delivery to see an exceptional H2. While we cut our FY sales forecasts on these results, management is confident on the earnings and we actually lift EPS expectation due to the H1 tax credits."
finnCap published a note this morning: "Four months into FY 2017, a trading update has reaffirmed the management teams FY earnings guidance - of £0.5m adj. PBT and 2.2p FD adj. EPs - but also flags up a more dramatic H2 weighting than seen last year, due to lengthy discussions ahead of the closure of some particularly large deals. While this naturally increases risk of slippage, we are reassured by managements confidence in the positive progress on these deals and in delivering a strong H2 profit. It proved its ability to do so last year (FY 2016 swinging from an £0.3m H1 loss to a £0.4m profit in H2). At this relatively early stage, we acknowledge a concern but make no change in FY 2017 earnings forecasts and will review the situation once we have better visibility on the six months trading to July and the order book at the time of the Interims." took this from Research tree.
"Laying the groundwork for sustainable profit growth after a tricky period is never easy. And LSE:EGS:eg solutions had already warned that near-term earnings had been sacrificed to get the company back in shape. Yet after a year of heavy ..."
Having looked at EGS as a potential investment, I have decided against it. Purely becuase I think it is being run for the benefit of Elizabeth Gooch and no one else.
Her greed is just staggering! When you look at at a small company which made a loss of £1.4m, yet the CEO was paid £1.65m!!!!
This company is just a joke! Shareholders are just being mugged
"After a challenging 2013, back office software company LSE:EGS:eg solutions is going from strength to strength, with its January fundraising driving product development and its order book looking full. Wait until September's interim results for a ..."
"A series of boardroom dramas in 2013 left LSE:EGS:eg Solutions in a mess, but reinstated CEO Elizabeth Gooch has turned the back office software company around. An impressive number of contract wins shows demand is there and a year of further ..."
g solutions, the back office optimization software company, now expects results for the full year to 31 January to be ahead of current market forecasts following a significant new contract win and strong momentum in trading.
Ha! I was wondering if you would see the statement, Spidey. Yes - all very encouraging.
"As a result, eg anticipates reporting revenue for the first six months of the financial year ahead of the comparative periods in 2012 and 2013, and that its financial performance for the full year to 31 January 2015 will be ahead of the Board's expectations"
Good to see some interest. There has been a change. An upgrade in management and the CEO now focused on driving the value of her 60% stake up, rather than extracting maximum salary. That will benefit all us shareholders.
Hi Alltold - looks like it might be just you and me watching this stock right now! But I defo sense momentum improving - reassuring talk of 'shareholder value' in the announcement yesterday (thats a first from EG!) and, as you say, it looks like scope for upside surprises from new orders. Chart starting to look solid now I just wish the spread wasn't so wide!
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