EG Solutions sees continued business momentum year-to-date

EG Solutions's chief sounded a confident note on the company's outlook, pointing to a sustained momentum for contract signings year-to-date and good visibility on revenues.

The workforce optimisation specialist reported a 52% jump in full-year 2016 operating profits on an EBITDA basis to £1.2m as top-line growth improved 8% to £8.2m.

That followed big changes to the company's sales and distributions strategies in mid-2016 which saw the number of "significant" contract wins leap to 16 last year.

"Similar momentum" in the business had been seen year-to-date, chief executive officer Elizabeth Gooch told Digital Look.

AIM-listed EG Solutions saw a step change in both contract signings and in all its main financial metrics between the first and second halves of last year.

Gross margins improved from 54% to 78%, EBITDA came out of the red and grew by 37% in the last six months of 2016 while operating cash flows improved from -£800,000 to £1.5m.

For 2016, the company was targeting EBITDA of £1.7m on sales of £10.2m.

"The Company has a profitable business with excellent products, a strong track record of delivery and good growth prospects. Our forward contracted order book, which now stands at a record £18.55m continues to grow, providing visibility and underpinning to our financial growth targets for the future," added chairman Nigel Payne.

"There is a real sense of momentum within the business and the Board looks forward to the new financial year with renewed confidence."

As of 1301 GMT shares in EG Solutions were up by 1.6% to 63.50p.