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eg solutions upgrades full-year forecasts after “strong” first half of trading

Last updated: 10:33 20 Jul 2017 EDT, First published: 02:33 20 Jul 2017 EDT

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The new numbers are well ahead of current consensus expectations

Back-office workforce optimisation specialist EG Solutions plc (LON:EGS) has enjoyed a “strong” first half of trading, so strong in fact that it has upgraded its full-year guidance.

For the 12 months to 31 January 2018, the AIM-quoted group is now forecasting revenues of at least £10.5mln (2017: £8.2mln) and adjusted underlying earnings (EBITDA) of not less than £1.9mln (2017: £1.2mln).

Both of those numbers, which could edge even higher, are well ahead of what the markets are currently forecasting. House broker finnCap had previously pencilled in sales of around £9.5mln and adjusted EBITDA of £1.4mln.

The outperformance is set to roll into 2018 as well, with contracted orders of revenues to be recognised beyond the current financial year end jumping by a further 14% to not less than £21.1mln (31 January 2017: £18.5mln).

READ: eg secures US$2.7mln contract with unnamed global bank

READ: eg solutions' 2017 order book already trumps 2016's

The solid pipeline is largely due to the increase in sales of the company’s managed cloud services, contracts for which are generally longer-term in nature

Shares jumped 15% to 95p, a new high for the year.

-- adds share price --

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