Disruption within its product set means AIM-listed back office optimisation software supplier eg Solutions expects to end the year (to January 31 2012) with revenue “significantly below” market expectations of £4.6m (vs £5.1m in 2011). Profit before tax will also be significantly below the £0.5m achieved last year.
The problems stem from work the company had to do to reengineer its product set to replace a third party component that was built into the real time performance management application it gained when it made its Xtag acquisition (see here). Even though it was expected to have little impact on the results for the year, the work clearly disrupted sales. The effect seems to have been short term however – in the closing days of the year EG Solutions won 5 new orders on the back of the reengineering work and additional investment in sales. 2012 has started well in the UK and elsewhere with the order book equal to 50% of market expectations for revenue for the current year.
This warning spoils a good run for the company, which has been benefitting from enterprises’ desire to invest in products that support better insight and decision-making.