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).
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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.
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