Last month eg Solutions warned that FY11 profits and revenue were going to be below market expectations (see Product rework scuppers eg Solutions’ revenue, profits) so today’s results did not come as a surprise. The company delivered a profit of £0.13m on revenue of £5.1m (vs £4.7m and £0.48m).
Normally we are dismissive of ‘exceptional items’ but eg was hit by a true exceptional item – having to rip and replace third party software from its acquired XTAQ asset. This is complete and operational signs are now good. At the end of the year it signed up five new financial services customers in the UK, South Africa and new territories. They included an investment bank and a business process outsourcer, which are new areas for eg. It is also gaining new customers and expanding business with existing ones as a result of the XTAQ acquisition. Last month it signed the most significant deal in its history.
The business process client is intriguing because eg Solutions’ business is back office process optimisation. We’ll find out how significant this move is when we talk to eg Solutions management over the next few days.