eg solutions plc
Annual report and accounts
for the year ended 31 January 2008
Stock exchange code: EGS
eg solutions plc, The Roller Mill, Teddesley Road, Penkridge, Staffordshire, ST19 5BD, UK
t: +44 (0) 1785 715772 f: +44 (0) 1785 712541
ask@eguk.co.uk www.eguk.co.uk
eg solutions plc Annual report and accounts 2008
eg solutions plc is a global business software
application vendor. Our software provides historic,
real-time and predictive Operational MI. When
implemented with our training programme for
managers and team leaders to use this
intelligence, we guarantee improvements in
operational results in short timescales.
The Company, which is listed on the Alternative
Investment Market (‘AIM’) of the London Stock
Exchange, is committed to customer satisfaction
and the ongoing development of its operations
management solutions.
corporate statement
contents
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 4
Board of Directors 10
Advisers 11
Directors’ Report 12
Corporate Governance Statement 16
Directors’ Remuneration Report 19
Directors’ Responsibilities in the Preparation
of the Financial Statements 21
Independent Auditors’ Report 22
Consolidated Balance Sheet 24
Company Balance Sheet 25
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 26
Consolidated Cash Flow Statement 27
Company Cash Flow Statement 28
Consolidated Financial Statements
Summary of Significant Accounting Policies 29
Notes to the Consolidated Financial Statements 34
Notice of Annual General Meeting 53
Form of Proxy 55 eg solutions plc
Annual report and accounts
for the year ended 31 January 2008
Stock exchange code: EGS
eg solutions plc, The Roller Mill, Teddesley Road, Penkridge, Staffordshire, ST19 5BD, UK
t: +44 (0) 1785 715772 f: +44 (0) 1785 712541
ask@eguk.co.uk www.eguk.co.uk
eg solutions plc Annual report and accounts 2008
eg solutions plc is a global business software
application vendor. Our software provides historic,
real-time and predictive Operational MI. When
implemented with our training programme for
managers and team leaders to use this
intelligence, we guarantee improvements in
operational results in short timescales.
The Company, which is listed on the Alternative
Investment Market (‘AIM’) of the London Stock
Exchange, is committed to customer satisfaction
and the ongoing development of its operations
management solutions.
corporate statement
contents
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 4
Board of Directors 10
Advisers 11
Directors’ Report 12
Corporate Governance Statement 16
Directors’ Remuneration Report 19
Directors’ Responsibilities in the Preparation
of the Financial Statements 21
Independent Auditors’ Report 22
Consolidated Balance Sheet 24
Company Balance Sheet 25
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 26
Consolidated Cash Flow Statement 27
Company Cash Flow Statement 28
Consolidated Financial Statements
Summary of Significant Accounting Policies 29
Notes to the Consolidated Financial Statements 34
Notice of Annual General Meeting 53
Form of Proxy 55 Our software provides real-time, consistent operational intelligence across a balanced
range of performance indicators to enable you to make the right operational decisions
— providing capacity planning, line balancing and timely reporting at multiple levels so
you can effecitvely measure, manage and improve your business operations.
Over 40,000 users trust eg — Our software is working hard for client businesses
across the globe.
  A global
operational
intelligence system
  What we do
eg operational intelligence
®
— the definitive software for
producing real-time Operations Management Information
(‘MI’), provides the most comprehensive Operations MI
available, supports the achievement of operational excellence
and enables organisations to achieve dramatic improvements
in service, efficiency and reduced costs in weeks —
guaranteed.
The eg principles of operational management
®
are based
on tried, tested and proven methodologies taken from
industry. They form the basis of a Manager and Team Leader
training and development programme in Operations
Management. Through training and skills transfer, Managers
and Team Leaders learn how to use eg operational
intelligence
®
to provide a consistent approach to
actively managing work, resources and performance.
eg operational excellence™ can be achieved by
using improved Operations MI and the eg principles of
operational management
®
to improve the end-to-end
customer service and quality experience.
operational management
practice you can measure
operational excellence
improvement you can measure
operational intelligence
performance you can measure
www.eguk.co.uk
Key
 eg offices
 eg operational intelligence
®
users
eg is the only business software application vendor that guarantees return on
investment and is paid based on the results delivered — implementations will pay
for themselves, typically within 6 months.
With over 40 current client sites, we have a wide range of reference sites to assure
you of our ability to deliver real performance improvement into your organisation. Our software provides real-time, consistent operational intelligence across a balanced
range of performance indicators to enable you to make the right operational decisions
— providing capacity planning, line balancing and timely reporting at multiple levels so
you can effecitvely measure, manage and improve your business operations.
Over 40,000 users trust eg — Our software is working hard for client businesses
across the globe.
  A global
operational
intelligence system
  What we do
eg operational intelligence
®
— the definitive software for
producing real-time Operations Management Information
(‘MI’), provides the most comprehensive Operations MI
available, supports the achievement of operational excellence
and enables organisations to achieve dramatic improvements
in service, efficiency and reduced costs in weeks —
guaranteed.
The eg principles of operational management
®
are based
on tried, tested and proven methodologies taken from
industry. They form the basis of a Manager and Team Leader
training and development programme in Operations
Management. Through training and skills transfer, Managers
and Team Leaders learn how to use eg operational
intelligence
®
to provide a consistent approach to
actively managing work, resources and performance.
eg operational excellence™ can be achieved by
using improved Operations MI and the eg principles of
operational management
®
to improve the end-to-end
customer service and quality experience.
operational management
practice you can measure
operational excellence
improvement you can measure
operational intelligence
performance you can measure
www.eguk.co.uk
Key
 eg offices
 eg operational intelligence
®
users
eg is the only business software application vendor that guarantees return on
investment and is paid based on the results delivered — implementations will pay
for themselves, typically within 6 months.
With over 40 current client sites, we have a wide range of reference sites to assure
you of our ability to deliver real performance improvement into your organisation. Key Business Highlights
 Continued expansion into new international
markets and demonstration of applicability
of our solutions in the global marketplace.
Secured clients in three of our five target
international markets. Sales revenues of
three times the original expectations for
the first year of international business have
been achieved.
 Launched new and improved versions of our
eg operational intelligence® software
suite which have been adopted by over 5,000
users across seven companies, including our
important home market. Also completed
development of eg activity manager™, a
new module of our software.
 Successful application of a Software as a
Service (“SaaS”) licence model based on the
hosted solution launched last year and
secured first long-term licence agreement for
a minimum of £330k of licence revenue
spread over the next three years.
 Strategic review undertaken to achieve cost
reductions; £900,000 on an annualised basis.
 Four new contract wins secured since the
start of the new 2008 financial year:
 Nationwide Building Society — a further
implementation in a core UK market.
 Co-operative Financial Services —
integration to automate the processing of
inbound and outbound correspondence
with three other partners.
 Co-operative Travel Group which
demonstrates another successful
application outside of financial services.
 A major South African life office employing
approximately 5,000 people; an initial
proof of concept project.
   Highlights
eg solutions plc 
annual report and accounts 2008  
www.eguk.co.uk
1
Our solutions are tried, tested and proven to work in
any organisation where process driven operations are
critical to business performance — we have completed
implementations and improved performance in blue
chip companies throughout the world.
“The cost savings made possible by eg were
considerable. eg promised to deliver a cost benefit of 
at least 20% — the actual cost benefit was 29%.”    Chairman’s Statement
eg solutions plc 
annual report and accounts 2008  
2
Introduction
As previously stated in our last Annual Report, during
2007 we intended to concentrate on reducing costs and
strengthening the fundamentals of our business in order
to return to profitable growth. We did not expect to
achieve this overnight and, whilst our financial
performance has been disappointing, our core objectives
have remained on track. There are clear signs of recovery
across the Group. 
We have also given particular attention to business
development within new markets and have made further
investment in our core products in order to meet our
customers’ requirements of improving operational
effectiveness in a global marketplace.
The work we have done will enable us to secure more
stable and sustainable growth in the future. With the
launch of new and improved versions of our software we
have also enjoyed some success in securing a number of
new contracts during the period. It is pleasing to note
that this new business also reflects our progress in
developing international markets. 
Financial Review
Financial performance for the full year ended 31 January
2008 was below expectations, but improvements in
profitability across the Group during the second half of
the year are clearly visible.
The financial year was one of operational transition and
margin recovery. We have undertaken initiatives to
reduce costs, whilst ensuring that overheads remain
under strict control. As a result costs are now below pre-
flotation levels. 
Although these measures resulted in the Company
returning to profit in the closing months of the financial
year, revenues from the majority of sales closed in the
same period were not recognisable until after the
financial year end. Therefore, these sales will contribute
towards revenues in the current financial year ending 
31 January 2009.
Revenue in the period was maintained at the same level
as the previous two half year periods at £4.1m for the
year (down by £1.3m on the previous year). The Loss
before Tax was £815,000 including one-off investment
costs of £392,000 (2007: £41,000). The retained loss for
the financial year was £656,000 (2007: Profit £6,000).
Loss per share was 5.0 pence per share (2007: 0.0 pence
per share).
Cash balance was £0.88m (2007: cash £2.43m).
Gross margin was 65.3%, which is in line with our target
and better than the average for the software sector.
“. . . during 2007 we intended to concentrate on
reducing costs and strengthening the fundamentals
of our business in order to return to profitable
growth . . . there are clear signs of recovery across
the Group . . . the full recovery of the business
requires 18 to 24 months to complete, and we are
reasonably satisfied with progress made to date.” eg solutions plc 
annual report and accounts 2008  
3
www.eguk.co.uk
Dividend
The Board will not be declaring a dividend at the full
year stage.
People
During the financial year we were very pleased to
announce the appointment of Paul Bird as Finance
Director and Company Secretary with effect from
3 September 2007. It was very unfortunate to have to
report Paul Bird’s decision to resign from the Board of
eg in order to allow him to assume another position
elsewhere. The Board is fully aware that another
personnel change at such a senior level within the
Company is far from ideal.
Therefore, we were delighted to announce the recent
appointment of Violetta Parylo as Finance Director and
Company Secretary with effect from Monday 19 May
2008. Violetta brings 14 years’ experience in delivering
strategic, financial and business value to the Company
having held a number of senior finance positions within
both UK and international companies. Paul will remain
with the Company until the end of his contracted notice
period in order to execute an efficient ‘hand-over’ to
his successor.
In November 2007 we also announced the resignation of
Jonathan Pyke as Non-executive Director. Jonathan, who
had been with eg since our flotation on AIM in 2005,
resigned to pursue a full-time position with another
company. He was a valued member of the Board and we
extend our very best wishes to him for the future.
We fully acknowledge the important role that Non-
executive Directors have to play in the future growth and
development of eg and, therefore, we are actively
seeking a suitable candidate that will add value to the
Company going forward. Shareholders will be updated on
any appointment in due course.
Across the Company our offices are well managed and
driven by a long-serving team of people at operational
level, all of whom remain fully committed to the overall
success of eg. On behalf of the Board and shareholders, 
I would like to take this opportunity to thank all of our
staff who have continued to work hard during what has
been an arduous year for the Company.
Overview
Although 2007 was a tough year, eg continues to be a
vibrant and dynamic organisation that is firmly focused
on implementing key objectives to return the business to
its previous levels of revenue growth and profitability. 
As we have indicated in previous announcements to
shareholders, the full recovery of the business requires
18 to 24 months to complete, and we are reasonably
satisfied with progress made to date.
As a Company, we fully recognise the importance of
nurturing appropriate new business opportunities both
within the UK and overseas and will continue to develop
this strategy for the foreseeable future.
Finally, and on an extremely positive note, the Company
celebrated its 20th birthday just before the financial year
end in January 2008. This was a significant milestone
that clearly reflects the longevity of the business and the
high levels of customer satisfaction with which we have
become synonymous.
Rodney Baker-Bates
Non-executive Chairman
18 March 2008    Chief Executive’s Review
eg solutions plc 
annual report and accounts 2008  
4
Business Review
The Company has made a number of significant
developments during the period under review. Our
objectives were to reduce costs, to expand into new
international markets and to build our repeatable
revenues. At the same time, we needed to continue to
enhance our software to meet customer requirements
across the globe. 
We are pleased to update shareholders on the following:
Cost Reduction
Our primary focus during the year was to reduce our cost
base. The main area of spend in eg is people and the
required reduction in headcount needed to be achieved
with sensitivity. The cost reduction work was completed
in the first half of the year with the actual cost reductions
beginning to take effect from June 2007 onwards. In
total, cost reductions of £900,000 on an annualised basis
have been achieved, bringing our UK cost base below
pre-flotation levels. Although the outturn for the full year
was still an operating loss, the loss in the second half of
the year was £215,000 compared to £682,000 in the first
half. In total, an operating loss of £897,000 was
generated including £392,000 in one-off costs associated
with the redundancies, setting up in new markets and the
additional cost of an interim Finance Director required in
the first half of the year.
Gross Margin for the year was 65.3% and, although this
is below the level achieved in the previous financial year
(72.9%), it is in line with our target and well ahead of
the sector average. 
Expansion into New Markets
At the same time as reducing our costs, we have
continued to focus on developing new international
markets in order to reduce revenue concentration on UK
financial services. In 2007 we secured clients in three of
our five target international markets. Sales revenues of
three times the original expectations for eg’s first year of
international business have been achieved.
We are pleased with the success of our implementation
projects within South Africa, India and the Netherlands
which clearly demonstrate the applicability of our
solutions in the global marketplace. Our international
business has also given us the opportunity to
demonstrate the successful application of a Software as a
Service (“SaaS”) licence model based on the hosted
solution launched earlier in the year.
The continued expansion into these overseas markets will
remain a key strategy for the foreseeable future in order
to mitigate the risks of over concentration on UK
markets. 
UK Business Development
In December 2007 we were delighted to secure a
significant piece of new business with a major UK Life &
Pensions Company within our core UK market.
We are providing this client with the new and improved
version of eg operational intelligence® software,
which was launched in April 2007, together with the eg
principles of operational management®. This
contract win was an important development as it
demonstrates our continued focus and commitment to
our very important home market, whilst we also
concentrate on international expansion.
eg continues to enjoy high levels of repeat business from
existing clients and, as a result of this and other work
undertaken throughout the 2007 financial year, we have
begun to reduce our exposure to ‘lumpiness’ in our
revenues.  eg solutions plc 
annual report and accounts 2008  
5
www.eguk.co.uk
We have also significantly reduced any dependency on
single clients/projects and worked hard to secure more
long-term contractual income, with a particular shift
towards securing three to five year licensing agreements.
Together with a high proportion of repeat revenues, these
actions reduce our exposure to more unpredictable new
business wins. 
Product Development
£0.7m of research and development costs have been
capitalised during the course of the financial year 
under IFRS.
The financial year marked a significant milestone in our
product offering to clients when, in April 2007, we
launched new and improved versions of our eg
operational intelligence® software suite, incorporating
eg work manager®.
The benefits of these new versions are extensive and
include improved functionality covering end-to-end
process and milestone measurement, customer
experience management (encompassing new service and
quality metrics), as well as management across multiple
time zones and an overall improved ‘look and feel’ for
both users and managers. As a result eg now has the
only operational intelligence tool that provides historic,
real-time and predictive management information at
multiple levels, both within and between businesses,
whilst at the same time enabling reporting by customer,
channel and process. 
Our Research and Development team in South Africa has
completed the development of eg activity manager™, a
new module of our software that enables our clients to
track actual processing time in comparison with target
processing time on an ongoing basis. 
“In 2007 we secured clients in three of our five
target international markets . . . We are pleased with
the success of our implementation projects within
South Africa, India and the Netherlands which
clearly demonstrate the applicability of our solutions
in the global marketplace.”    Chief Executive’s Review continued
eg solutions plc 
annual report and accounts 2008  
6
Given the increased pressure for businesses to deliver
improved customer service at the lowest possible cost,
eg’s leading edge operational intelligence together with
training and implementation services that enable
companies to achieve guaranteed and sustainable
improvements resonate well with these requirements. 
During the year, the new and improved versions of our
software have been adopted by over 5,000 users, across
seven companies, bringing our total worldwide users to
over 40,000.
Current Trading
Our clients, across many different markets both in the UK
and abroad, continue to confirm that our software,
implementation and training services generate the
dramatic improvements that we promise. The three new
contract wins that we secured within the first trading
month of the 2008 financial year are clear evidence of
the continued interest in our solutions from a number of
sectors within the UK.
Firstly, Nationwide Building Society has commissioned a
further implementation in the Specialist Lending Division
in Bournemouth. This follows the recent upgrade to the
new versions of the eg operational intelligence®
software suite that took place between November 2007
and January 2008. In this new project Nationwide will
use eg’s software to migrate UCB Homeloans into the
Bournemouth operations centre.
At Co-operative Financial Services, the Group has
secured a major software services project to embed the
eg operational intelligence® software suite into an
integrated solution that will automate the processing of
inbound and outbound correspondence. The full solution
will be developed in partnership with three other
companies: Xerox, Communisis and Exstream. eg will
provide the operations management components of the
solution including work and process management, and
the automatic production of historic, real-time and
predictive MI.
Finally, a further new implementation will take place in
the Travel and Tour Operator Payments teams of the Co-
operative Travel Group. eg’s software was already
installed in the Financial Shared Services teams of The
Co-operative Group before the retailer merged with
United Co-operative last year. This new implementation
will take place in the Travel and Tour Operator Payments
division of the merged Group. The new version of the eg
operational intelligence® software suite will be
implemented, demonstrating another application of the
enhanced functionality of the software outside financial
services.
We are pleased that during the year we have secured our
first long-term licence agreement. It is an objective of
the Company to secure a higher proportion of renewable
income and whilst eg has significant annual revenue
generated from maintenance contracts we wish to
increase this guaranteed revenue stream through the
addition of long-term renewable licence contracts. To this
end we have signed a contract with a customer for a
minimum of £330k of licence revenue to be spread over
the next three years, with the potential for significant
uplift as licence numbers increase. 
These new contract wins clearly demonstrate that the
Company is becoming increasingly better placed to take
advantage of the opportunities provided by different
sectors and the requirements of global operational
management in general.  eg solutions plc 
annual report and accounts 2008  
7
www.eguk.co.uk
Future Outlook
Although we have achieved many of our turnaround
objectives, we still have work to do on our strategy to
further improve sustainability. At the same time the
market environment has become extremely
unpredictable. We therefore remain cautious in our
outlook for 2008.
However, we are pleased that our order book for the
forthcoming year is already £3m, 50% higher than at the
same point in the 2007 financial year. The sales pipeline
is healthy and, on this basis, we will continue to
demonstrate continued recovery during 2008.
Shareholders should be aware that during the recession
of 2001 to 2003 eg outperformed the rest of the software
industry by consistently growing in both revenue and
profit during this difficult period. 
This positive historical performance demonstrates the
continued demand for our products during downturns in
the IT market in general and our reduced vulnerability to
falls in IT spending amongst our clients.
The Chairman, Chief Executive and senior management
team were all in place during the last market downturn
and, together with the cost reductions we have made, we
believe that we are well placed to repeat our 2001 to
2003 performance in terms of growth and value for
shareholders.
“Contract wins that we secured within the first trading
month of the 2008 financial year are clear evidence of the
continued interest of our solutions from a number of sectors
within the UK.”
   Chief Executive’s Review continued    Chief Executive’s Review continued
eg solutions plc 
annual report and accounts 2008  
8
Financial Review
Overview
In the year ended 31 January 2008 turnover was
£4.12m, a reduction of £1.35m (2007: £5.47m).
Operating losses increased from a loss of £0.15m in 2007
to produce a loss of £0.90m. 
International Financial Reporting Standards
(“IFRS”)
The Group has produced its financial statements under
IFRS. Comparison values shown in the operational and
Business Review and the Directors’ Report are based on
prior year IFRS. An extract of the result for 2006–07
under UK GAAP and IFRS is produced on pages 48 to 52.
Revenue Analysis
The Group produced a disappointing first half result with
revenues of £2.07m, 39.7% down on 2006 (£3.43m).
Revenue earned in the second half of the year was
£2.05m compared with £2.04m in the same period for
the prior year.
The Group segments its operations on the basis of
‘geographical segmentation of operations’. The Group has
determined that this is the most appropriate segmental
split to reflect the nature of the Group’s operations. The
Group has two distinct companies operating in different
geographical areas with different economic and political
conditions and a different maturity of client and client
requirements.
The Group has a subsidiary undertaking in South Africa.
Revenue generated from South African operations
totalled £0.35m, of which 63.2% was generated in the
second half of the year.
The Group operating loss of £0.90m includes a charge of
£0.65m for development expenditure. The Group
operating loss in 2007 was £0.15m, after charging
development expenditure of £0.55m. The Group’s cash
balances reduced during the year; however, interest
earned was £0.08m.
Loss Before Taxation
The loss before taxation was £0.82m (2007: loss
£41,000). 
Taxation
The Group has benefited from the favourable tax relief
given on development expenditure which results in a
higher tax credit. The effective rate of taxation credit is
20% (2007: Effective rate of tax credit 114%).
Earnings Per Share
Loss per share on a basic and fully diluted basis were
(5.0p) and (5.0p) respectively. In the prior year the 
basic earnings per share was 0.0p and on a fully diluted
basis 0.0p.
Dividend
There were no dividends paid during the year. The
Directors do not recommend a final dividend. 
Research and Development & Capital Expenditure
The Group spent £1.24m on direct staff costs for
research and development, of which £0.59m was
capitalised. An additional £0.13m, in relation to
associated overheads, was also capitalised. In 2007 the
Group expended £0.81m on direct staff costs developing
its software product, of which £0.26m was capitalised. An
additional £0.03m, in relation to associated overheads,
was also capitalised. The majority of the expenditure
relates to the development of new and enhanced
software offerings. 
At interim results the value of capitalised development
was based solely on the value of directly attributable
staffing costs. As part of the year end process the
capitalisation has been extended to incorporate an
appropriate amount of indirect overheads. This additional
allocation was performed following a full review of
development costs in line with audit recommended best
practice. This allocation adjustment has affected the
periods 31 January 2006 and 31 January 2007 and is
reflected within the IFRS comparisons for prior years. eg solutions plc 
annual report and accounts 2008  
9
www.eguk.co.uk
Cash Flow
The Group is debt free and at 31 January had interest
earning cash balances of £0.88m (2007: £2.43m). Cash
outflow in the year from operating activities was £0.85m
(2007: inflow £0.87m) resulting principally from reduced
turnover creating a net cash outflow from operations. 
Going Concern
Based on normal business planning and control
procedures, the Directors have a reasonable expectation
that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this
reason, the Directors continue to adopt the going concern
basis in preparing the accounts.
Elizabeth Gooch
Chief Executive Officer
18 March 2008
“eg continues to enjoy high levels of repeat business
from existing clients . . . we have also significantly
reduced any dependency on single clients/projects
and worked hard to secure more long-term
contractual income.”
   Chief Executive’s Review continued    Board of Directors
eg solutions plc 
annual report and accounts 2008  
10
1 Rodney Baker-Bates
Non-executive Chairman
Rodney, 63, is a Chartered Accountant, a Fellow of
the Institute of Bankers and the Institute of
Management Consultants. A former Chief Executive of
Prudential Financial Services, he previously worked in
senior roles at the BBC, Midland Bank and Chase
Manhattan Bank. Rodney is also Chairman of
Britannia Building Society, Helphire Group, Stobart
Group, Assura Group and FirstAssist Insurance
Services.
2 Elizabeth Gooch
Chief Executive Officer
Elizabeth Gooch started her career in the 1980s as an
in-house consultant at Forward Trust, a subsidiary of
Midland Bank. She then moved to Birmingham
Midshires before establishing eg in 1988. After
working for some manufacturers, Elizabeth introduced
their proactive management of processing and
operations into the back offices of financial services
businesses. Based on this experience, Elizabeth
designed and launched the eg Operational Intelligence
software suite.
Today, having successfully implemented eg’s
Operational Management solutions in large financial
services companies such as HBOS, Norwich Union and
Scottish Equitable, Elizabeth stands out as one of
Staffordshire’s rare IT entrepreneurs and was
recognised as the seventh leading female
entrepreneur in Management Today’s top 100
entrepreneurs 2006 and 2007.
3 Paul Bird
Finance Director
Paul Bird joined eg as Finance Director with
responsibility for Commercial aspects, Software and
Operations. Previously serving at South Staffordshire
Plc, firstly as Director of Finance (software and
outsourcing) and, since 2004, as Finance and
Commercial Director of Echo Managed Services Ltd,
Paul has valuable financial and commercial expertise
and extensive knowledge of growing businesses. Paul
holds an MBA, an MA in Commercial and Contract
Law, a Postgraduate diploma in Employment Law, an
MSc in Policy and Management and qualifications in
accountancy.
1 2 3 Advisers
eg solutions plc 
annual report and accounts 2008  
11
www.eguk.co.uk
4 Andrew McRae
Non-executive Director
Andy McRae has more than 20 years of international
business experience, much spent within the support
services sector. Most recently, Andy was Managing
Director, UK & Ireland for Hays PLC, the leading
specialist recruitment company. A qualified UK
Chartered Accountant, prior to assuming senior
general management roles, Andy held a number of
senior financial positions in the UK. In 1999, Andy led
the public-to-private management buy-out of Coutts
Consulting Group with backing from 3i. The business
was sold after three years yielding a significant gain
to shareholders.
Registered Office
eg solutions plc
The Roller Mill
Teddesley Road
Penkridge
Staffordshire
ST19 5BD
Auditors
Baker Tilly UK Audit LLP
Registered Auditor &
Chartered Accountants
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5BB
Solicitors 
TLT Solicitors
Sea Containers House
20 Upper Ground
Blackfriars Bridge
London
SE1 9LH
Nominated Adviser
Brewin Dolphin
Securities Limited
National House
36 St Ann Street
Manchester
M60 2EP
4 Directors’ Report
eg solutions plc 
annual report and accounts 2008  
12
The Directors submit their report and the financial
statements of eg solutions plc for the year ended 
31 January 2008.
Principal Activities
The principal activity of the Group is that of an IT and
software support services business delivering guaranteed
improvements in operations management. The Group
uses proprietary software packages and an operations
management methodology based on production
management techniques. The Group delivers measurable
operational improvements in large back office
environments.
Business Review
Revenue in the period was £4.1m which was £1.4m lower
than in 2007. The retained loss for the year is
(£656,000) (2007: profit £6,000).
The information that fulfils the requirements of the
Business Review including Key Performance Indicators
can be found in the Chairman’s Statement and Chief
Executive’s Review on pages 2 to 9 which is incorporated
in this report by reference. 
The purpose of this Annual Report is to provide
information to the members of the Group. The Annual
Report contains certain forward-looking statements with
respect to the operations, performance and financial
condition of the Group. By nature these statements
involve uncertainty since future events and
circumstances can cause results and developments to
differ materially from those anticipated. The forward-
looking statements reflect knowledge and information
available at the date of preparation of this Annual Report
and the Group undertakes no obligation to update these
forward-looking statements. Nothing in this Annual
Report should be construed as a profit forecast.
Results and Dividends
The trading results for the year are set out on page 26.
The Directors do not recommend a final dividend on the
ordinary shares (2007: NIL).
Future Developments
The Group has been carrying out a consolidation and is
now embarked upon a growth strategy which will extend
its activities in financial services, into other new UK
market sectors in addition to developing its activities
outside of the UK. The Group established an operation in
South Africa and secured contracts within the territory. In
addition, the Group is planning to expand upon its entry
in Northern Europe over the coming period.
Key Performance Indicators
The Group’s progress on its strategic objectives is
monitored by the Board of Directors by reference to the
following Key Performance Indicators (KPIs). The matters
mentioned in the Chairman’s Statement are a reflection
of the performance of the business set out in the table
below along with comparative prior year performance
data. Directors’ Report continued
eg solutions plc 
annual report and accounts 2008  
13
www.eguk.co.uk
Note 2008 2007
Revenue A £4,123,000 £5,472,000
Revenue reduction B (24.7%) (6.9%)
Gross margin % C 65.3% 72.9%
Operating (loss)/profit % D (21.8%) (2.8%)
Net (loss)/profit % E (15.9%) 0.1%
Retained cash balances A £878,000 £2,431,000
Cash flow from operating activities inflow/(outflow) A £(849,000) £869,000
Research and development expenditure on staffing costs
(including capitalised staff development costs) A £1,235,000 £806,000
Debtor days F 27 25
Creditor days F 47 32
A Revenue, Cash at bank and in hand, Cash flow from operating activities and Research and Development
staffing expenditure are as extracted from the financial statements.
B Revenue Reduction compares the change in revenue from one year to the next expressed in percentage terms.
C Gross Margin is the gross profit as a percentage of revenue. Gross profit and revenue are taken from the
income statement in the financial statements.
D Operating (loss)/profit percentage is operating (loss)/profit as a percentage of revenue. Operating
(loss)/profit and revenue are taken from the income statement in the financial statements.
E Net (loss)/profit percentage is net (loss)/profit as a percentage of revenue. Net (loss)/profit after tax and
revenue are taken from the income statement in the financial statements.
F Debtor days represent the length of time taken by customers to pay their bills and Creditor days represent
the length of time taken by the Group to pay its suppliers. The number of days outstanding has been
calculated by comparing the outstanding balance for trade debtors and trade creditors with the value of sales
or purchases respectively, inclusive of VAT, and calculating the period for which they remain unpaid using the
count-back method.
During the next financial period the Group intends to
review its KPIs and ensure these reflect its geographical
segmentation and provide further tools for Board and
Management to assess performance in line with
growth strategies.
Political and Charitable Contributions
During the year the Group made charitable donations
of £7,050, principally to local charities serving the
communities in which the Group operates.
Research and Development
The Group invests in the continual modification and
improvement of its products to meet technological
advances and customer and new market requirements.
Employee Involvement and Disability
The Group’s policy is to consult and discuss with
employees any matters likely to affect their interests.
Information on matters of concern to employees is
provided in order to achieve a common awareness of the
regular and frequent financial and economic factors
affecting the Group’s performance.
The Group’s policy is to recruit disabled workers for those
vacancies that they are able to fill. All necessary
assistance with initial training courses is given. Once
employed, a career plan is developed so as to ensure
suitable opportunities for each disabled person.
Arrangements are made, wherever possible, for retraining
employees who become disabled to enable them to
perform work identified as appropriate to their aptitudes. Beneficial
Ordinary shares Ordinary shares 
of 1p each of 1p each 
31 January 2008 31 January 2007
Beneficial
RP Baker-Bates 475,000 475,000
EA Gooch 8,793,200 8,793,200
A McRae 20,000 20,000
J Pyke (Director until 23 November 2007) 6,600 6,600
EA Gooch has non-beneficial interests in 1,176,470 shares which are held on behalf of the eg solutions plc Employee
Benefit Trust.
under review. The Group also works with a diversity of
partners to mitigate the risk inherent in working with a
single partner.
Operations
The Group’s facilities could be disrupted by events
beyond its control such as fire or other issues.
The Group prepares recovery plans for most foreseeable
situations so that our business operations would continue
should these situations occur. 
Directors
The following Directors have held office since 
1 February 2007:
RP Baker-Bates 
EA Gooch
A McRae
J Pyke (resigned 23 November 2007)
P Bird (appointed 3 September 2007)
M Wilton (resigned 31 August 2007)
Directors’ Interests in Shares 
Directors’ interests in the shares of the Group, including
family interests, were as follows:
Risks and Uncertainties
There are a number of potential risks and uncertainties
which could have a material impact on the Group’s long-
term performance and cause actual results to differ
materially from expected and historical results.
Management seeks to identify material risks and put in
place contingency plans to mitigate the Group’s potential
exposure. The Group’s risk management policies and
procedures are also discussed in the Corporate
Governance Statement on pages 16 to 18. A summary of
the key risks is given below:
Competitor Risk
The market for operations management improvement is
becoming increasingly competitive. To mitigate this risk,
management works to build strong customer
relationships and develop the Group’s product offering. 
Commercial Relationships
Some of the products utilise interfaces with proprietary
software licensed by independent, third party software
developers. Any absence of key third-party products
could have a material impact on the business.
To mitigate this risk, all key commercial relationships and
developments in technology in the marketplace are kept
14
eg solutions plc 
annual report and accounts 2008  
Directors’ Report continued Directors’ Report continued
www.eguk.co.uk
15
eg solutions plc 
annual report and accounts 2008  
Substantial Shareholdings
On 31 January 2008, other than the Directors whose interests are shown on page 14, the following held more than 3%
of the issued share capital:
Percentage of Issued 
Investor Shares Held Share Capital
ISIS Equity Partners LLP 2,034,741 14.2%
Brewin Dolphin Securities Ltd 1,111,731 7.8%
Unicorn Asset Management 588,635 4.1%
Transact Integrated Portfolio Service 558,538 3.9%
Cornelian Asset Managers Ltd 479,412 3.4%
The Directors who were in office on the date of approval of these financial statements have confirmed, as far as they are
aware, that there is no relevant audit information of which the Auditors are unaware. Each of the Directors have
confirmed that they have taken all steps that they ought to have taken as Directors in order to make themselves aware
of any relevant audit information and to establish that it has been communicated to the Auditors.
This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies
Act 1985.
Policy on Payment of Creditors 
It is Group policy to agree and clearly communicate 
the terms of payment as part of the commercial
arrangements negotiated with suppliers and then to pay
according to those terms based on the timely receipt of
an accurate invoice. 
Trade creditor days based on creditors at 31 January
2008 were 47 days (2007: 32 days).
Auditors
The Directors, having been notified of the cessation of
the partnership known as Baker Tilly, resolved that Baker
Tilly UK Audit LLP be appointed as successor Auditors
with effect from 1 April 2007, in accordance with the
provisions of the Companies Act 1989, S26(5). 
Baker Tilly UK Audit LLP have expressed their willingness
to continue in office as Auditors and a resolution to
reappoint Baker Tilly UK Audit LLP will be proposed at the
forthcoming Annual General Meeting.
Annual General Meeting
The Annual General Meeting of the Company will be held
at 10.30 am on 17 June 2008 at the offices of TLT
Solicitors, Sea Containers House, 20 Upper Ground,
Blackfriars Bridge, London, SE1 9LH.
By order of the Board
P Bird
Secretary
18 March 2008
By order of the Board Corporate Governance Statement
eg solutions plc 
annual report and accounts 2008  
16
Principles of Corporate Governance
As a company listed on AIM, the Company is not
governed by the Combined Code adopted by the London
Stock Exchange (“the Combined Code”) but is required to
operate principles of good governance and best practice.
Accordingly, the Directors are committed to the
Combined Code and believe that an effective system of
corporate governance supports the enhancement of
shareholder value. These principles have been in place
since the Company’s flotation on 6 June 2005.
Board Structure
During the year the Board comprised the Non-executive
Chairman, the Chief Executive Officer, the Finance
Director and one other independent Non-executive
Director. A second independent Non-executive Director
resigned on 23 November 2007. 
The Board is responsible to shareholders for the proper
management of the Company. A statement of Directors’
responsibilities in respect of the accounts is set out on
page 21. The Non-executive Directors have a particular
responsibility to ensure that the strategies proposed by
the Executive Directors are fully considered. To enable
the Board to discharge its duties all Directors have full
and timely access to all relevant information. There is a
procedure for all Directors in furtherance of their duties
to take independent professional advice, if necessary, at
the expense of the Company. The Board has a formal
schedule of matters reserved to it and meets at least
quarterly. It is responsible for overall strategy, approval
of major capital expenditure projects and consideration of
significant financing matters.
The following Committees, which have written terms of
reference, deal with specific aspects of the Company’s
affairs:
 The Nomination Committee is chaired by the
Chairman and comprises the Board. The Committee is
responsible for proposing candidates for appointment
to the Board, having regard to the balance and
structure of the Board. In appropriate cases
recruitment consultants are used to assist the
process. All Directors are subject to re-election at
least every three years.
 The Remuneration Committee is responsible for
making recommendations to the Board on the
Company’s framework of Executive remuneration and
its cost. The Committee determines the contract
terms, remuneration and other benefits for each of
the Executive Directors and senior employees,
including performance related bonus schemes,
pension rights and compensation payments. The
Board itself determines the remuneration of the Non-
executive Directors. The Committee comprises the
Non-executive Directors and it is chaired by the
Chairman. The Directors’ Remuneration Report is set
out on pages 19 to 20.
 The Audit Committee comprises two Non-executive
Directors and is chaired by Andrew McRae. Its prime
tasks are to review the scope of external audit, to
receive regular reports from Baker Tilly and to review
the half-yearly and annual accounts before they are
presented to the Board, focusing in particular on
accounting policies and areas of management,
judgement and estimation. The Committee is
responsible for monitoring the controls which are in
force to ensure the integrity of the information
reported to the shareholders.  eg solutions plc 
annual report and accounts 2008  
17
www.eguk.co.uk
The Committee acts as a forum for discussion of internal
control issues and contributes to the Board’s review of
the effectiveness of the Company’s internal control and
risk management systems and processes. The Committee
also considers the need for an internal audit function. It
advises the Board on the appointment of external
auditors and on their remuneration for both audit and
non-audit work, and discusses the nature and scope of
the audit with the external auditors. The Committee,
which meets at least twice per year, provides a forum for
reporting by the Company’s external Auditors. Meetings
are also attended, by invitation, by the Chief Executive
Officer and Finance Director. 
The Audit Committee also undertakes a formal
assessment of the Auditors’ independence each year
which includes:
 a review of the non-audit services provided to the
Company and related fees;
 discussion with the Auditors of a written report
detailing all relationships with the Company and any
other parties that could affect independence or the
perception of independence;
 a review of the Auditors’ own procedures for ensuring
the independence of the audit firm and partners and
staff involved in the audit, including the regular
rotation of the audit partner; and
 obtaining written confirmation from the Auditors that,
in their professional judgement, they are
independent.
An analysis of the fees payable to the external audit firm
in respect of both audit and non-audit services during the
year is set out in Note 4 to the financial statements.
Internal Control
The Directors are responsible for the Group’s system of
internal control and reviewing its effectiveness.
The Board has designed the Group’s system of internal
control in order to provide the Directors with reasonable
assurance that its assets are safeguarded, that
transactions are authorised and properly recorded and that
material errors and irregularities are either prevented or
would be detected within a timely period. However, no
system of internal control can eliminate the risk of failure
to achieve business objectives or provide absolute
assurance against material misstatement or loss. 
The key elements of the control system in operation are:
 The Board meets regularly with a formal schedule of
matters reserved to it for decision. It has put in place
an organisational structure with clear lines of
responsibility defined and with appropriate delegation
of authority.
 There are established procedures for the planning,
approval and monitoring of capital expenditure and
information systems for monitoring the Group’s
financial performance against approved budgets and
forecasts.
 The departmental heads are required annually to
undertake a full assessment process to identify and
quantify the risks that face their businesses and
functions, and assess the adequacy of the prevention,
monitoring and modification practices in place for
those risks. In addition, regular reports about
significant risks and associated control and monitoring
procedures are reported to the Board to enable the
Directors to review the effectiveness of the system of
internal control. The process adopted by the Group
accords with the guidance contained in the document
“Internal Control Guidance for Directors on the
Combined Code” issued by the Institute of Chartered
Accountants in England and Wales.
Corporate Governance Statement continued Corporate Governance Statement continued
eg solutions plc 
annual report and accounts 2008  
18
The Audit Committee receives reports from external
Auditors on a regular basis and from Executive Directors
of the Company. During the period the Audit Committee
has reviewed the effectiveness of the system of internal
control as described above. The Board receives periodic
reports from all Committees. 
There are no other significant issues disclosed in the
annual report and accounts for the year ended 
31 January 2008 and up to the date of approval of the
annual report and accounts that have required the Board
to deal with any related material internal control issues.
The Directors confirm that the Board has reviewed the
effectiveness of the system of internal control as
described during the period.
Relations With Shareholders
The Group values its dialogue with both institutional and
private investors. Effective two-way communication with
fund managers, institutional investors and analysts is
actively pursued and this encompasses issues such as
performance, policy and strategy. All key individuals have
made themselves available for meetings with investors
on issues relating to the Group’s strategy and
governance. During the year the Directors held meetings
with institutional investors covering the majority of
shareholders in the Group.
Private investors are encouraged to participate in the
Annual General Meeting at which the Chairman presents
a review of the results and comments on current
business activity. The Chairmen of the Audit,
Remuneration and Nomination Committees will be
available at the Annual General Meeting to answer any
shareholder questions.
This year’s Annual General Meeting will be held on 
17 June 2008. The notice of the Annual General Meeting
may be found on page 53. eg solutions plc 
annual report and accounts 2008  
19
www.eguk.co.uk
Remuneration Committee
The Group has established a Remuneration Committee
which is constituted in accordance with the
recommendations of the Combined Code. The members
of the Committee are A McRae who is an independent
Non-executive Director and the Committee is chaired by
RP Baker-Bates. 
In determining the Directors’ remuneration for the year,
the Committee consulted the Chief Executive Officer, EA
Gooch, about its proposals. 
Remuneration Policy
The policy of the Committee is to reward Executive
Directors in line with the current remuneration of
Directors in comparable businesses in order to recruit,
motivate and retain high quality Executives within a
competitive marketplace.
There are four main elements of the remuneration
packages for Executive Directors and Senior
Management:
 basic annual salary (including Directors’ fees) and
benefits;
 annual bonus payments;
 share option incentives; and
 pension arrangements.
Basic Salary
Basic salary is reviewed at the discretion of the
Remuneration Committee. In addition to basic salary, the
Executive Directors also receive certain benefits in kind,
principally a car allowance, private medical insurance and
life and critical illness insurance. 
Annual Bonus
The Committee establishes the objectives which must be
met for each financial year if a cash bonus is to be paid.
The purpose of the bonus is to reward Executive
Directors and other senior employees for achieving above
average performance which also benefits shareholders.
Share Options
Certain Executive Directors have options granted to them
under the terms of the Share Option Scheme which is
open to all employees. Under the Scheme, options are
allocated at the discretion of the Remuneration
Committee and are subject to performance criteria
relating to increases in earnings per share. Share options
granted to Directors who have resigned during the year
are returned to the pool for further distribution.
Pension Arrangements
Executive Directors are members of defined contribution
pension schemes and a contribution of 10% of basic
annual salary is paid by the Group. No other payments to
Directors are pensionable.
Directors’ Contracts
It is the Group’s policy that Executive Directors should
have contracts with an indefinite term providing for a
maximum of six months’ notice. In the event of early
termination, the Directors’ contracts provide for
compensation up to a maximum of basic salary for the
notice period.
Non-executive Directors
The fees of Non-executive Directors are determined by
the Board as a whole, having regard to the commitment
of time required and the level of fees in similar
companies. Non-executive Directors are not eligible to
participate in the Group’s pension scheme. 
Non-executive Directors are employed on contracts with
an indefinite term providing for a maximum of one year’s
notice for the Chairman and three months’ notice for the
other Non-executives.
Directors’ Remuneration Report Directors’ Remuneration Report continued
eg solutions plc 
annual report and accounts 2008  
20
Aggregate Directors’ Remuneration
2008 2007
£’000 £’000
Emoluments 429 473
Money purchase pension contributions 23 59
Total 452 532
Total Total 
Salary Benefits Bonuses 2008 2007
£’000 £’000 £’000 £’000 £’000
RP Baker-Bates 30 30 30
EA Gooch 185 26 211 212
P Bird (appointed 
3 September 2007) 42 5 15 62
A McRae 15 15 13
M Wilton (resigned 
31 August 2007) 100 100
J Pyke (resigned 
23 November 2007) 11 11 62
DJ Blain (resigned 
31 January 2007) 145
P Thomas (resigned 
3 October 2006) 10
PE Maguire (resigned 
21 December 2005) 1
383 31 15 429 473
The pension contributions payable by the Group in respect of each Director during the year were:
2008 2007
£’000 £’000
RP Baker-Bates — —
EA Gooch 19 26
P Bird 4 —
A McRae — —
J Pyke — —
DJ Blain (resigned 31 January 2007) 25
PE Maguire (resigned 21 December 2005) 8
23 59
Approval
This report was approved by the Board of Directors on 18 March 2008 and signed on its behalf by:
P Bird
Secretary
18 March 2008
This report was approved by the Board of Directors on 18 March 2008 and signed on its behalf by:
P Bird eg solutions plc 
annual report and accounts 2008  
21
www.eguk.co.uk
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and International Financial Reporting
Standards.
Company law requires the Directors to prepare financial
statements for each financial year which give a true and
fair view, in accordance with International Financial
Reporting Standards, of the state of affairs of the Group
and of the profit and loss of the Group for that period. In
preparing those financial statements, the Directors are
required to:
1. select suitable accounting policies and then apply
them consistently;
2. make judgements and estimates that are reasonable
and prudent;
3. state whether applicable Accounting Standards have
been followed, subject to any material departures
disclosed and explained in the financial statements;
and
4. prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Group will continue in business.
The Directors are responsible for keeping proper
accounting records which disclose with reasonable
accuracy at any time the financial position of the Group
and to enable them to ensure that the financial
statements comply with the requirements of the
Companies Act 2006. They are also responsible for
safeguarding the assets of the Group and hence for
taking reasonable steps for the prevention and detection
of fraud and other irregularities.
They are responsible for ensuring that the annual report
includes information required by the AIM Rules of the
Financial Services Authority.
The Directors are also responsible for the maintenance
and integrity of the corporate and financial information of
the information included on the eg solutions plc website.
The work carried out by the Auditors does not involve
consideration of these matters and, accordingly, the
Auditors accept no responsibility for any changes that
may have occurred to the information contained in the
financial statements since they were initially presented
on the website.
Legislation in the United Kingdom governing the
preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Going Concern
The Directors confirm that they are satisfied that the
Group has adequate resources to continue in business for
the foreseeable future. For this reason, they continue to
adopt the going concern basis in preparing the financial
statements.
Directors’ Responsibilities in the 
Preparation of the Financial Statements Independent Auditors’ Report 
to the Members of eg solutions plc
eg solutions plc 
annual report and accounts 2008  
22
We have audited the Group and parent Company financial
statements on pages 24 to 52.
This report is made solely to the Company’s members, as
a body, in accordance with section 235 of the Companies
Act 1985. Our audit work has been undertaken so that
we might state to the Company’s members those matters
we are required to state to them in an Auditors’ report
and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s
members as a body for our audit work, for this report, or
for the opinions we have formed.
Respective Responsibilities of Directors and
Auditors
The Directors’ responsibilities for preparing the Annual
Report and the financial statements in accordance with
applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union
(“EU”) are set out in the Statement of Directors’
Responsibilities.
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory
requirements and International Standards on Auditing
(UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985. 
We also report to you if, whether in our opinion, the
information given in the Directors’ Report is consistent
with the financial statements.
In addition, we report to you if, in our opinion, the
Company has not kept proper accounting records, if we
have not received all the information and explanations we
require for our audit, or if information specified by law
regarding Directors’ remuneration and other transactions
is not disclosed.
We read other information contained in the Annual
Report, and consider whether it is consistent with the
audited financial statements. This other information
comprises the Chairman’s Statement, Chief Executive
Officer’s Review, the Financial Review, the Directors’
Report, the Corporate Governance Statement and the
Directors’ Remuneration Report. We consider the
implications for our report if we become aware of any
apparent misstatements or material inconsistencies with
the financial statements. Our responsibilities do not
extend to any other information.
Basis of Audit Opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination,
on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an
assessment of the significant estimates and judgements
made by the Directors in the preparation of the financial
statements, and of whether the accounting policies are
appropriate to the Company’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence
to give reasonable assurance that the financial
statements are free from material misstatement, whether
caused by fraud or other irregularity or error. In forming
our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements. eg solutions plc 
annual report and accounts 2008  
23
www.eguk.co.uk
Opinion
In our opinion:
 the Group financial statements give a true and fair
view, in accordance with IFRSs as adopted by the
European Union, as applied in accordance with the
provisions of the Companies Act 1985, of the state of
the Group’s affairs as at 31 January 2008 and of its
loss for the year then ended;
 the parent Company financial statements give a true
and fair view, in accordance with IFRSs as adopted by
the European Union, as applied in accordance with
the provisions of the Companies Act 1985, of the
state of the parent Company’s affairs as at 
31 January 2008;
 the financial statements have been properly prepared
in accordance with the Companies Act 1985; and
 the information given in the Directors’ Report is
consistent with the financial statements.
Baker Tilly UK Audit LLP
Registered Auditor and Chartered Accountants 
Festival Way
Stoke-on-Trent
Staffordshire 
ST1 5BB
9 May 2008
Independent Auditors’ Report continued Consolidated Balance Sheet
at 31 January 2008
At 31 January At 31 January 
2008 2007
Notes £’000 £’000
Assets
Non-current assets
Development asset 10 911 319
Property, plant and equipment 12 117 132
1,028 451
Current assets
Trade and other receivables 15 849 520
Current tax receivable 157 99
Cash and cash equivalents 878 2,431
1,884 3,050
Total assets 2,912 3,501
Liabilities
Current liabilities
Trade and other payables 17 969 970
969 970
Non-current liabilities
Deferred tax liabilities 19 82 92
82 92
Total liabilities 1,051 1,062
Net assets 1,861 2,439
Equity
Share capital 20 143 143
Share premium 21 2,910 2,910
Share-based payment reserve 21 191 123
Own shares held (1,000) (1,000)
Retained earnings 23 (383) 263
Total equity 1,861 2,439
The financial statements on pages 24 to 52 were approved by the Board of Directors and authorised for issue on
18 March 2008 and are signed on its behalf by:
EA Gooch
Chief Executive Officer
eg solutions plc 
annual report and accounts 2008  
24 eg solutions plc 
annual report and accounts 2008  
25
www.eguk.co.uk
Company Balance Sheet
at 31 January 2008
At 31 January At 31 January 
2008 2007
Notes £’000 £’000
Assets
Non-current assets
Development asset 11 911 319
Property, plant and equipment 13 87 132
998 451
Current assets
Trade and other receivables 16 1,310 520
Current tax receivable 157 99
Cash and cash equivalents 725 2,431
2,192 3,050
Total assets 3,190 3,501
Liabilities
Current liabilities
Trade and other payables 18 1,049 970
1,049 970
Non-current liabilities
Deferred tax liabilities 19 140 92
140 92
Total liabilities 1,189 1,062
Net assets 2,001 2,439
Equity
Share capital 20 143 143
Share premium 22 2,910 2,910
Share-based payment reserve 22 191 123
Own shares held (1,000) (1,000)
Retained earnings 24 (243) 263
Total equity 2,001 2,439 eg solutions plc 
annual report and accounts 2008  
26
Consolidated Income Statement
for the year ended 31 January 2008
Year ended Year ended
31 January 31 January
2008 2007
Notes £’000 £’000
Revenue 1 4,123 5,472
Cost of sales (660) (904)
Research and development expenditure (647) (545)
Amortisation of development expenditure (124) (35)
Total cost of sales (1,431) (1,484)
Gross profit 2,692 3,988
Administrative expenses (3,589) (4,142)
Loss from operations 3 (897) (154)
Investment income 6 82 113
Loss before tax (815) (41)
Income tax expense 7 159 47
Loss after tax (656) 6
Earnings/(loss) per share — —
From continuing operations
Basic 9 (5.0p) 0.0p
Diluted 9 (5.0p) 0.0p
Consolidated Statement of 
Recognised Income and Expense
for the year ended 31 January 2008
2008 2007
£’000 £’000
Currency translation differences 10 —
Net income for the year directly recognised in equity 10 —
Profit for the year (656) 6
Total recognised income for the year (646) 6
Attributable to:
Equity holders of the parent (646) 6
(646) 6 Consolidated Cash Flow Statement
for the year ended 31 January 2008
Year ended Year ended
31 January 31 January
2008 2007
Notes £’000 £’000
Operating activities
Cash generated from operations 26 (940) 1,094
Income taxes received/(paid) 91 (225)
Net cash from/(used in) operating activities (849) 869
Investing activities
Purchases of other intangible assets (716) (283)
Purchases of property, plant and equipment (70) (80)
Interest received 82 113
Net cash used in investing activities (704) (250)
Financing activities
Dividends paid — (223)
Net cash (used in)/from financing activities — (223)
Net increase/(decrease) in cash and cash equivalents (1,553) 396
Cash and cash equivalents at beginning of year 2,431 2,035
Cash and cash equivalents at end of year
Bank balances and cash 878 2,431
eg solutions plc 
annual report and accounts 2008  
27
www.eguk.co.uk Company Cash Flow Statement
for the year ended 31 January 2008
Year ended Year ended
31 January 31 January
2008 2007
Notes £’000 £’000
Operating activities
Cash generated from operations 27 (1,139) 1,094
Income taxes received/(paid) 91 (225)
Net cash from/(used in) operating activities (1,048) 869
Investing activities
Purchases of other intangible assets (716) (283)
Purchases of property, plant and equipment (24) (80)
Interest received 82 113
Net cash used in investing activities (658) (250)
Financing activities
Dividends paid — (223)
Net cash (used in)/from financing activities — (223)
Net increase/(decrease) in cash and cash equivalents (1,706) 396
Cash and cash equivalents at beginning of year 2,431 2,035
Cash and cash equivalents at end of year
Bank balances and cash 725 2,431
eg solutions plc 
annual report and accounts 2008  
28 Consolidated Financial Statements 
Summary of Significant Accounting Policies 
The financial statements have been prepared in accordance with International Financial Reporting Standards as
endorsed by the EU (“IFRS”) for the first time. 
This is the first year that the Group has presented its financial statements under IFRS. The following disclosures
are required in the year of transition. The last financial statements under UK GAAP were for the year ended 
31 January 2007 and the date of transition to IFRS was therefore 1 February 2006.
The financial statements have been prepared on the historical cost basis, except for the revaluation of land and
buildings and certain financial instruments. The principal accounting policies adopted are set out below.
Basis of Consolidation
The consolidated financial statements of the Group incorporate the financial statements of the Group and
enterprises controlled by the Group (its subsidiaries) made up to 31 January each year. 
Subsidiaries
Subsidiaries are entities over which the Group has the power to govern the financial and operating policies to
obtain economic benefit to the Group. Subsidiaries are fully consolidated from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
All intra-Group transactions, balances, and unrealised gains on transactions between Group companies are
eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred.
Segmental Reporting
The Group has elected to segment its operations on the basis of ‘geographical segmentation of operations’. The
Group has determined that this is the most appropriate segmental split to reflect the nature of the Group’s
operations. The Group has two distinct companies operating in different geographical areas with different
economic and political conditions and a different maturity of client and client requirements. These are:
 EGUK — United Kingdom
 EGSA — South Africa
Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated
residual value over its expected useful life, as follows:
Computer Equipment — 50% straight-line
Office Equipment — 15% reducing balance
Fixtures and Fittings — 15% reducing balance
Motor Vehicles — 25% reducing balance.
Impairment of tangible and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets,
the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an
indication that the asset may be impaired.
eg solutions plc 
annual report and accounts 2008  
29
www.eguk.co.uk Consolidated Financial Statements 
Summary of Significant Accounting Policies continued
Retirement Benefits
The Company operates a defined Contribution Pension Scheme. The assets of the scheme are held separately
from those of the Company in an independently administered fund. The amount charged to the profit and loss
account in respect of pension costs and other post-retirement benefits is the contributions payable in the year.
Differences between contributions payable in the year and contributions actually paid are shown as either
accruals or prepayments in the balance sheet. 
Foreign Currencies
Transactions in currencies other than sterling, the presentational and functional currency of the Company, are
recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date,
monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing
on the balance sheet date. Non-monetary assets and liabilities carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains
and losses arising on retranslation are included in the income statement for the period, except for exchange
differences on non-monetary assets and liabilities, which are recognised directly in equity, where the changes in
fair value are recognised directly in equity.
On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates
prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for
the period. Exchange differences arising, if any, are classified as equity and transferred to the Group’s translation
reserve. Such translation differences are recognised as income or as expenses in the period in which the
operation is disposed of.
Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported
in the income statement because it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is
calculated by using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a
transaction which affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled based upon tax rates that have been enacted or substantively enacted by the balance sheet
date. Deferred tax is charged or credited in the income statement, except when it relates to items credited or
charged directly to equity, in which case the deferred tax is also dealt with in equity.
eg solutions plc 
annual report and accounts 2008  
30 Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand and at bank and other short-term deposits held by the Group
with maturities of less than three months.
Share-Based Payments
The Group has applied the requirements of IFRS 2 Share-based Payments. In accordance with the transitional
provisions, IFRS 2 has been applied to all grants of equity instruments after 7 November 2002 that were
unvested as of 1 February 2006.
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based
payments are measured at fair value at the date of grant. The fair value determined at the grant date of equity-
settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s
estimate of shares that will eventually vest. Fair value is measured by use of the Black–Scholes model. The
expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-
transferability, exercise restrictions, and behavioural considerations.
Employee Share Ownership Plans
The Company operates an ESOP trust and has de facto control of the shares held by the trust and bears their
benefits and risks. The Group records certain assets and liabilities of the trust as its own. Finance costs and
administrative expenses are charged as they accrue.
Financial Risk Management Objectives and Policies
The Group’s activities will expose the Group to a number of risks including market risk (foreign currency risk,
price risk and interest rate risk), credit risk and liquidity risk. The Group manages these risks through an effective
risk management programme and appropriate use of derivatives. Exposures to financial risks are monitored by
Group Treasury and Financial Operations management and they are required to produce a monthly risk report
comprising all risk and an indication of the business impact of those risks.
The risk reports are provided to the Board of Directors in advance of the monthly Board meetings and are
discussed by the Board to ensure that the risk mitigation procedures are compliant with the Group policy and that
any new risks are appropriately managed.
Price Risk
The Group’s products are tailored to realise benefits for customers and to meet individual requirements. Prices
are negotiated with each customer on the basis of their specification of the product. 
Credit Risk
The Group has focused on selling to a ‘blue chip’ customer base thereby minimising the risk of incurring 
bad debts.
Liquidity
At the year end the Group had £878k in net cash balances. The policy is to ensure that operating profits are
turned into cash balances during the year. 
Cash Flow Risk
The Group’s policy is to remain broadly cash neutral over the coming financial year. 
eg solutions plc 
annual report and accounts 2008  
31
www.eguk.co.uk
Consolidated Financial Statements 
Summary of Significant Accounting Policies continued Consolidated Financial Statements 
Summary of Significant Accounting Policies continued
Foreign Currency Risk
The Group is exposed to minimal foreign currency risk through transactions with overseas customers.
Leases
Leases in which a significant portion of the risk and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are
charged to the income statement on a straight-line basis over the period of the lease.
New Standards, Interpretations and Amendments to Published Standards
Effective for the Group for the financial year beginning 1 February 2008
 IFRIC 11 ‘IFRS 2 — Group and Treasury Share Transactions’
Effective for the Group for future financial years
 Amendment to IAS 23 ‘Borrowing Costs’
 IFRS 8 ‘Operating Segments’
 IFRIC 12 ‘Service Concession Arrangements’
 Revision of IAS 1 ‘Presentation of Financial Statements’
 Amendments to IFRS 3 ‘Business Combinations’
 Amendments to IAS 27 ‘Consolidated and separate financial statements’
 Amendments to IFRS 2 ‘Share Based Payment’
 Amendments to IAS 32 ‘Financial Instruments’
The Group has considered the above new standards, interpretations and amendments to published standards
that are not yet effective and concluded they are either not relevant to the Group or that they would not have
significant impact on the Group’s financial statements, apart from additional disclosures.
Critical Accounting Estimates and Judgements
Revenue Recognition
Maintenance Contracts
Income in respect of maintenance contracts is invoiced on an annual basis and recognised as earned.
Long-Term Contracts
Long-term contracts are assessed on a contract by contract basis and reflected in the Income Statement by
recording revenue and related costs as contract activity progresses. 
Revenue is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for
profit earned to date when the outcome of the contract can be assessed with reasonable certainty. Amounts
recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work
done less amounts received as progress payments on account. Excess progress payments are included in
creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less
provision for contingencies and anticipated future losses on contracts are included as long-term contract balances
in stock.
eg solutions plc 
annual report and accounts 2008  
32 Development Assets 
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the Group’s software development is recognised only if all of
the following conditions are met:
 an asset is created that can be identified (such as software and new processes);
 it is probable that the asset created will generate future economic benefits; 
 the development cost of the asset can be measured reliably;
 the product or process is technically and commercially feasible; and 
 sufficient resources are available to complete the development and to either sell or use the asset.
Where no internally generated intangible asset can be recognised, development expenditure is recognised as an
expense in the period in which it is incurred. 
Internally generated intangible assets are amortised on a straight-line basis over their useful lives (6 years).
eg solutions plc 
annual report and accounts 2008  
33
www.eguk.co.uk
Consolidated Financial Statements 
Summary of Significant Accounting Policies continued Notes to the Consolidated Financial Statements
for the year ended 31 January 2008
1 Revenue
An analysis of the Group’s revenue is as follows:
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
Continuing operations
United Kingdom 3,775 5,472
South Africa 348 —
4,123 5,472
2 Segmental Information
Business Segments
The Group has elected to segment its operations of the basis of ‘geographical segmentation of operations’.
The Group has determined that this is the most appropriate segmental split to reflect the nature of the
Group’s operations. The Group has two distinct companies operating in different geographical areas with
different economic and political conditions and a different maturity of client and client requirements. 
These are:
 EGUK — United Kingdom
 EGSA — South Africa
Segment information about these companies is presented below.
Income Statement UK SA Eliminations Consolidated
Revenue
External sales 3,775 348 — 4,123
Inter-segment sales 300 125 (425) —
Total revenue 4,075 473 (425) 4,123
Cost of sales
External cost of sales 1,361 70 — 1,431
Inter-segment cost of sales 71 314 (385) —
Total cost of sales 1,432 384 (385) 1,431
Gross profit 2,643 89 (40) 2,692
Administrative expenses 3,298 291 3,589
Inter-segment administrative expenses 34 — (34) —
Operating loss (689) (202) (6) (897)
Finance income 82 —— 82
Loss before tax (607) (202) (6) (815)
Income tax expense 101 58 — 159
Loss after tax (506) (144) (6) (656)
eg solutions plc 
annual report and accounts 2008  
34 2 Segmental Information continued
Balance Sheet UK SA Eliminations Consolidated
Non-current assets
Property, plant and equipment 87 30 — 117
Intangible assets 911 —— 911
Total non-current assets 998 30 — 1,028
Current assets
Trade and other receivables 1,310 138 (599) 849
Current tax receivable 157 —— 157
Cash and cash equivalents 725 153 — 878
Total current assets 2,192 291 (599) 1,884
Total assets 3,190 321 (599) 2,912
Equity
Issued capital 143 —— 143
Share premium 2,910 —— 2,910
Other reserves 191 —— 191
Own shares held (1,000) —— (1,000)
Retained earnings (243) (134) (6) (383)
Shareholders’ Funds 2,001 (134) (6) 1,861
Non-current liabilities
Deferred tax 140 (58) — 82
Total non-current liabilities 140 (58) — 82
Current liabilities
Trade and other payables 1,049 513 (593) 969
Total current liabilities 1,049 513 (593) 969
Total liabilities 1,189 455 (593) 1,051
Total liabilities and equity 3,190 321 (599) 2,912
Based on risks and returns, the Directors consider that the secondary reporting format is by business
segment. The Directors consider that there is only one business segment being IT and Software Support
Services. Therefore, the disclosures for the secondary segment have already been given in these financial
statements.
3 Loss from operations
Loss from operations has been arrived at after charging/(crediting):
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
Net foreign exchange losses/(gains) 9 —
Research and development costs 647 545
Amortisation of development expenditure 124 35
Depreciation on owned assets 85 89
Staff costs (see note 5) 3,122 3,070
Auditors’ remuneration for audit services (see note 4) 33 16
eg solutions plc 
annual report and accounts 2008  
35
www.eguk.co.uk
Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
4 Amounts Payable to Baker Tilly and their Associates in Respect of both Audit and Non-Audit
Services
2008 2007
£’000 £’000
Audit services: 
Baker Tilly
Statutory audit of parent accounts — 14
Tax services — 2
Baker Tilly UK Audit LLP
Statutory audit of parent and consolidated accounts 18 —
Other services:
IFRS audit re 2007 statements 2 —
Baker Tilly Tax & Advisory Services LLP
Interim tax advice 1 —
Directors tax 1 —
Interim tax advice 2 —
Share options advice 1 —
Tax services 3 —
Charles Orbach & Co — South Africa
Statutory audit of subsidiary accounts 5 —
33 16
5 Staff Costs
The average monthly number of employees (including Executive Directors) for the year for each of the
Group’s principal divisions was as follows:
Year ended Year ended 
31 January 31 January
2008 2007
Number Number
Implementation and training services 9 20
Software Support and Development 19 13
Sales and Marketing 8 7
Management and Administration 10 9
46 49
The aggregate remuneration for the above persons comprised:
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
Wages and salaries 2,752 2,658
Social security costs 234 316
Other pension costs 136 96
3,122 3,070
eg solutions plc 
annual report and accounts 2008  
36 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
5 Staff Costs continued
Aggregate Directors’ Remuneration
2008 2007
£’000 £’000
Emoluments 429 473
Money purchase pension contributions 23 59
Total 452 532
Total Total 
Salary Benefits Bonuses 2008 2007
£’000 £’000 £’000 £’000 £’000
RP Baker-Bates 30 30 30
EA Gooch 185 26 211 212
P Bird (appointed 
3 September 2007) 42 5 15 62
A McRae 15 15 13
M Wilton (resigned 
31 August 2007) 100 100
J Pyke (resigned 
23 November 2007) 11 11 62
DJ Blain — 145
P Thomas — 10
PE Maguire — 1
383 31 15 429 473
6 Investment Income
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
Interest on bank deposits 82 113
7 Taxation
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
Current tax
Domestic (156) (113)
Adjustments in respect of prior periods 7 —
(149) (113)
Deferred tax
Current tax 16 72
Adjustments in respect of prior periods (26) (6)
Tax attributable to the Group and its subsidiaries (159) (47)
Domestic income tax is calculated at 30% (2007: 30%) of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
eg solutions plc 
annual report and accounts 2008  
37
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
7 Taxation continued
Year ended Year ended 
31 January 31 January
2008 2007
£’000 £’000
The charge for the year can be reconciled to the profit per
the income statement as follows
Loss before tax (815) (41)
Tax at the domestic income tax rate 30% (2007: 30%) (245) (12)
Tax effects of expenses that are not deductible in determining taxable profit 67 58
Other timing differences (3) 1
Research and development (98) (66)
Marginal rate of tax 137 (8)
Prior year adjustments (19) (20)
Effect of different tax rates of subsidiaries operating in other jurisdictions 2 —
Tax credit (159) (47)
Effective tax rate for the year 20% 114%
8 Dividends
In respect of the current year, the Directors propose that no dividend will be paid to shareholders.
9 (Loss)/Earnings Per Share
Year ended Year ended 
31 January 31 January
2008 2007
From continuing operations £’000 £’000
Basic (5.0p) 0.0p
Diluted (5.0p) 0.0p
EPS has been calculated using the following methodology:
Profit/(Loss) after Tax
Allotted issued and fully paid share less shares owned by the Employee Benefit Trust.
Diluted EPS has been calculated using the following methodology:
Profit/(Loss) after Tax
Allotted issued and fully paid shares less shares owned by the Employee Benefit Trust that are not currently
allocated as options.
As the Basic EPS is a negative value, the effects of anti-dilutive potential ordinary shares are ignored in
calculating diluted EPS.
eg solutions plc 
annual report and accounts 2008  
38 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
10 Development Assets Consolidated
Development 
costs
£’000
Cost
At 1 February 2006 75
Acquisitions — internally developed 283
Disposals —
At 1 February 2007 358
Acquisitions — internally developed 716
Disposals —
At 31 January 2008 1,074
Amortisation and impairment
At 1 February 2006 4
Amortisation for the year 35
Disposals —
At 1 February 2007 39
Amortisation for the year 124
Disposals —
At 31 January 2008 163
Carrying amount
At 31 January 2008 911
At 31 January 2007 319
Amortisation of £124k (2007: £35k) has been charged to costs of sales.
11 Development Assets Company
Development 
costs
£’000
Cost
At 1 February 2006 75
Acquisitions — internally developed 283
Disposals —
At 1 February 2007 358
Acquisitions — internally developed 716
Disposals —
At 31 January 2008 1,074
Amortisation and impairment
At 1 February 2006 4
Amortisation for the year 35
Disposals —
At 1 February 2007 39
Amortisation for the year 124
Disposals —
At 31 January 2008 163
Carrying amount
At 31 January 2008 911
At 31 January 2007 319
Amortisation of £124k (2007: £35k) has been charged to costs of sales.
eg solutions plc 
annual report and accounts 2008  
39
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
12 Property, Plant and Equipment Consolidated
Computer and Fixtures and
office equipment fittings Motor vehicles Total
£’000 £’000 £’000 £’000
Cost or valuation
At 1 February 2006 306 96 6 408
Additions 68 12 — 80
Disposals —— ——
At 1 February 2007 374 108 6 488
Additions 70 —— 70
Disposals —— ——
At 31 January 2008 444 108 6 558
Accumulated depreciation
At 1 February 2006 211 52 4 267
Depreciation charge for the year 81 71 89
Disposals —— ——
At 1 February 2007 292 59 5 356
Depreciation charge for the year 78 7— 85
Disposals —— ——
At 31 January 2008 370 66 5 441
Net book value
At 31 January 2008 74 42 1 117
At 31 January 2007 82 49 1 132
Depreciation expense of £85k (2007: £89k) has been charged to administration expenses.
13 Property, Plant and Equipment Company
Computer and Fixtures and
office equipment fittings Motor vehicles Total
£’000 £’000 £’000 £’000
Cost or valuation
At 1 February 2006 306 96 6 408
Additions 68 12 — 80
Disposals —— ——
At 1 February 2007 374 108 6 488
Additions 24 —— 24
Disposals —— ——
At 31 January 2008 398 108 6 512
Accumulated depreciation
At 1 February 2007 211 52 4 267
Depreciation charge for the year 81 71 89
Disposals —— ——
At 1 February 2007 292 59 5 356
Depreciation charge for the year 62 7— 69
Disposals —— ——
At 31 January 2008 354 66 5 425
Net book value
At 31 January 2008 44 42 1 87
At 31 January 2007 82 49 1 132
Depreciation expense of £69k (2007: £89k) has been charged to administration expenses.
eg solutions plc 
annual report and accounts 2008  
40 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
14 Subsidiaries
Details of the Group’s subsidiaries at 31 January 2008 are as follows:
Place of Proportion of Proportion
incorporation ownership of voting 
(or registration) interest power held Principal
Name of subsidiary and operation %% activity
eg International Ltd UK 100 100 Dormant
eg USA Inc USA 100 100 Dormant
eg Operations Management South Africa 100 100 Consultancy
(Pty) Ltd and Software
The only cost in relation to dormant companies is an annual filing charge paid through the parent Company.
15 Other Financial Assets Consolidated
Trade and other receivables are as follows:
2008 2007
£’000 £’000
Trade debtors 614 293
Other debtors 29 15
Prepayments and deferred income 206 212
849 520
At 31 January 2008 all trade receivables were denominated in GBP.
The Directors consider that the carrying amount of trade and other receivables approximates to their 
fair value.
16 Other Financial Assets Company
Trade and other receivables are as follows:
2008 2007
£’000 £’000
Trade debtors 614 293
Inter-Company debtor 479 —
Other debtors 25 15
Prepayments and deferred income 192 212
1,310 520
At 31 January 2008 all trade receivables were denominated in GBP.
The Directors consider that the carrying amount of trade and other receivables approximates to their 
fair value.
Other Debtors include £24k (2007: £nil) due from EA Gooch. The maximum amount outstanding during
the year was £24k (2007: £34k).
eg solutions plc 
annual report and accounts 2008  
41
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
17 Other Financial Liabilities Consolidated
Trade and other payables are as follows:
2008 2007
£’000 £’000
Payments on account 195 162
Trade creditors 305 321
Other tax and social security 193 206
Accruals and deferred income 276 281
969 970
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. 
The Directors consider that the carrying amount of trade payables approximates to their fair value.
18 Other Financial Liabilities Company
Trade and other payables are as follows:
2008 2007
£’000 £’000
Payments on account 193 162
Trade creditors 280 321
Inter-Company creditor 119 —
Other tax and social security 190 206
Accruals and deferred income 267 281
1,049 970
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. 
The Directors consider that the carrying amount of trade payables approximates to their fair value.
19 Deferred Tax
2008 2007
Group £’000 £’000
Analysis for financial reporting purposes
Deferred tax liabilities 248 92
Deferred tax assets (166) —
Net position at 31 December 82 92
The movement in the year in the Group’s net deferred tax position was as follows:
2008 2007
£’000 £’000
At 1 January 92 26
Charge to income for the year 16 72
Adjustment in respect of prior period (26) (6)
At 31 December 82 92
eg solutions plc 
annual report and accounts 2008  
42 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
19 Deferred Tax continued
The following are the major deferred tax liabilities and assets recognised by the Group and the movements
thereon during the period:
Accelerated tax 
depreciation
Deferred tax liabilities £’000
At 1 February 2006 26
Charge to income for the year 72
Adjustment in respect of prior period (6)
At 31 January 2007 92
Charge to income for the year 158
Adjustment in respect of prior period (2)
At 31 January 2008 248
Share-based 
payments Tax losses Total
Deferred tax assets £’000 £’000 £’000
Charge to income for the year —— —
At 31 January 2007 —— —
Charge to income for the year 20 (162) (142)
Adjustment in respect of prior period (24) — (24)
At 31 January 2008 (4) (162) (166)
At the balance sheet date, the Group has unused tax losses of £578,000 (2007: £nil) available for offset
against future profits. A deferred tax asset of £162,000 (2007: £nil) has been recognised in respect of 
such losses.
2008 2007
Company £’000 £’000
Analysis for financial reporting purposes
Deferred tax liabilities 248 92
Deferred tax assets (108) —
Net position at 31 January 140 92
The movement in the year in the Company’s net deferred tax position was as follows:
2008 2007
£’000 £’000
At 1 February 92 26
Charge to income for the year 74 72
Adjustment in respect of prior period (26) (6)
At 31 January 140 92
eg solutions plc 
annual report and accounts 2008  
43
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
19 Deferred Tax continued
The following are the major deferred tax liabilities and assets recognised by the Company and the
movements thereon during the period:
Accelerated tax 
depreciation
Deferred tax liabilities £’000
At 1 February 2006 26
Charge to income for the year 72
Adjustment in respect of prior period (6)
At 31 January 2007 92
Charge to income for the year 158
Adjustment in respect of prior period (2)
At 31 January 2008 248
Share-based 
payments Tax losses Total
Deferred tax assets £’000 £’000 £’000
At 1 February 2006 —— —
Charge to income for the year —— —
At 31 January 2007 —— —
Charge to income for the year 20 (104) (84)
Adjustment in respect of prior period (24) — (24)
At 31 January 2008 (4) (104) (108)
At the balance sheet date, the Company has unused tax losses of £369,000 (2007: £nil) available for
offset against future profits. A deferred tax assets of £103,000 (2007: £nil) has been recognised in
respect of such losses.
20 Share Capital
2008 2007
£’000 £’000
Authorised
50,000,000 ordinary shares of 1p each 500 500
Allotted issued and fully paid
14,293,847 ordinary shares of 1p each 143 143
There were no movements in the Share Capital of the Group in either the 2008 or 2007 reporting
period.
The Group has one class of ordinary shares which carry no right to fixed income. During the year ended 
31 January 2008, the Group issued nil shares (2007: 45,000) under the Group’s share option plan 
(note 25).
eg solutions plc 
annual report and accounts 2008  
44 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
21 Capital Reserves Consolidated
Share Share-based 
premium payment reserve Total
£’000 £’000 £’000
Balance at 1 February 2007 2,910 123 3,033
Charge for the year — 68 68
Balance at 31 January 2008 2,910 191 3,101
22 Capital Reserves Company
Share Share-based 
premium payment reserve Total
£’000 £’000 £’000
Balance at 1 February 2007 2,910 123 3,033
Charge for the year — 68 68
Balance at 31 January 2008 2,910 191 3,101
23 Retained Earnings Consolidated
£’000
Balance at 1 February 2007 263
Dividends paid —
Net loss for the year (656)
Foreign exchange difference 10
Balance at 31 January 2008 (383)
24 Retained Earnings Company
£’000
Balance at 1 February 2007 263
Dividends paid —
Net loss for the year (506)
Balance at 31 January 2008 (243)
eg solutions plc 
annual report and accounts 2008  
45
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
25 Share-Based Payments
Equity-Settled Share Option Plan
The Group plan provides for a grant price equal to the average quoted market price of the Group shares
on the date of grant. The vesting period is generally three to four years. If options remain unexercised
after a period of ten years from the date of grant, the options expire. 
Furthermore, options are forfeited if the employee leaves the Group before the options vest.
2008 2007
Weighted average Weighted average 
exercise price exercise price
Options (£) Options (£)
Outstanding at 1 January 520,000 687,500
Granted during the year nil 45,000
Forfeited during the year nil nil
Exercised during the year nil nil
Expired during the year 100,000 212,500
Outstanding at 31 January 2008 420,000 £0.48 520,000 £0.57
Exercisable at 31 January 2008 nil
The options outstanding at 31 January 2008 had an exercise price between 3.5 pence and 161.5 pence,
and a weighted average remaining contractual life of six years.
The inputs into the Black–Scholes option pricing model are as follows:
2008 2007
Weighted average share price £0.47 £0.98
Weighted average exercise price £0.48 £0.57
Expected volatility 30% 52.8%
Expected life 4 years 4 years
Risk-free rate 4.5% 5.2%
Expected dividends 1.0% 1.0%
Expected volatility was determined by calculating the historical volatility of a comparable business, prior to
the period when the Company’s shares were listed on the AIM market, over the previous four years. The
expected life used in the model has been adjusted, based upon the management’s best estimate for the
effects of non-transferability, exercise restrictions, and behavioural considerations.
100,000 options were granted in prior periods and lapsed on by 31 January 2008:
20 April 2005: 40,000 options
14 July 2005: 24,000 options 
19 December 2005: 6,000 options
3 April 2006: 15,000 options
28 July 2006: 5,000 options
eg solutions plc 
annual report and accounts 2008  
46 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
26 Reconciliation of Consolidated Profit Before Tax to Net Cash Generated by Operations 
2008 2007
£’000 £’000
Profit/(loss) before tax (897) (154)
Adjustments for:
Depreciation of property, plant and equipment 85 89
Amortisation of intangible assets 124 35
Share option charge 68 51
Foreign exchange (gains)/losses 10 —
Operating cash flows before movements in working capital (610) 21
Decrease/(increase) in receivables (329) 990
Increase/(decrease) in payables (1) 83
Cash generated by operations (940) 1,094
27 Reconciliation of Company Profit Before Tax to Net Cash Generated by Operations
2008 2007
£’000 £’000
Profit/(loss) before tax (689) (154)
Adjustments for:
Depreciation of property, plant and equipment 69 89
Amortisation of intangible assets 124 35
Share option charge 68 51
Operating cash flows before movements in working capital (428) 21
Decrease/(increase) in receivables (790) 990
Increase/(decrease) in payables 79 83
Cash generated by operations (1,139) 1,094
28 Related Party Transactions
Trading transactions
During the year, Group companies entered into the following transactions, for the purchase of goods and
services, with related parties who are not members of the Group
2008 2007
£’000 £’000
Related parties 15 5
The above value relates to a single party related to the Group due to the owner/manager of the business
being a close family member (as defined under IAS 24) of the Chief Executive of the Group. In accordance
with AIM Rules, this disclosure has been made as the value of purchases exceeds 0.25% of total
purchases.
Other Debtors include £24k (2007: £nil) due from EA Gooch. The maximum amount outstanding during
the year was £24k (2007: £34k).
The Group purchased the associated services under its normal terms of trade and payment was made
under normal trading arrangements.
eg solutions plc 
annual report and accounts 2008  
47
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
29 Explanation of Transition to IFRS
This is the first year that the Group has presented its financial statements under IFRS. The following
disclosures are required in the year of transition. The last financial statements under UK GAAP were for the
year ended 31 January 2007 and the date of transition to IFRS was therefore 1 February 2007. The Group
prepared its opening balance sheet at that date.
The main changes from preparing the results under IFRS rather than UK GAAP that affect the Group loss and
net asset position relate to the treatment of research and development expenditure.
Research and development expenditure was previously expensed as incurred under UK GAAP.
Under IFRS, development expenditure that results in new or substantially improved products or processes,
where it is deemed probable that recovery will take place, are capitalised and amortised on a straight-line
basis over the products expected useful economic life.
The adoption of IFRS does not impact the amount of cash previously disclosed under UK GAAP in any of the
periods of account.
Exemptions from full retrospective application elected by the Company
Property, Plant and Equipment
The Company has elected to adopt the UK GAAP accounting values as the deemed cost for IFRS.
Exceptions from full retrospective application followed by the Company
Estimates
All estimates made by the Company in preparing the Financial Statements under IFRS as at 1 February 2006
are consistent with estimates made under UK GAAP at that date.
Reconciliation of Net Income for the Year Ended 31 January 2007
IAS 38
Intangible 
UK GAAP fixed assets IFRS
£’000 £’000 £’000
Revenue 5,472 5,472
Cost of sales (877) (877)
Development expenditure (833) (833)
Development expenditure capitalised 261 261
Amortisation of development expenditure (35) (35)
Total cost of sales (1,710) 226 (1,484)
Gross profit 3,762 226 3,988
Administrative expenses (4,164) (4,164)
Administrative expenses capitalised 22 22
Operating profit (402) 248 (154)
Finance income 113 113
Finance costs —
Profit before income tax (289) 248 (41)
Income tax (expense) 116 (69) 47
Profit for the financial year (173) 179 6
Earnings/(loss) per share — basic (1.3p) 0.0p
Fully diluted (1.3p) 0.0p
eg solutions plc 
annual report and accounts 2008  
48 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
29 Explanation of Transition to IFRS continued
Reconciliation of Equity from UK GAAP to IFRS at 1 February 2006
IAS 38
Intangible
UK GAAP fixed assets IFRS
£’000 £’000 £’000
Equity
Issued capital 143 143
Share premium 2,910 2,910
Other reserves 72 72
Own shares held (1,000) (1,000)
Retained earnings 431 49 480
Shareholders’ funds 2,556 49 2,605
eg solutions plc 
annual report and accounts 2008  
49
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
29 Explanation of Transition to IFRS continued
Reconciliation of Consolidated Balance Sheet from UK GAAP to IFRS at 31 January 2007
IAS 38
Intangible 
UK GAAP fixed assets IFRS
£’000 £’000 £’000
Non-current assets 132 132
Property, plant and equipment 319 319
Intangible assets
Total non-current assets 132 319 451
Current assets
Trade and other receivables 619 619
Cash and cash equivalents 2,431 2,431
Total current assets 3,050 3,050
Total assets 3,182 319 3,501
Equity
Issued capital 143 143
Share premium 2,910 2,910
Other reserves 123 123
Own shares held (1,000) (1,000)
Retained earnings 35 228 263
Shareholders’ funds 2,211 228 2,439
Non-current liabilities
Deferred tax 1 91 92
Total non-current liabilities 1 91 92
Current liabilities
Trade and other payables 689 689
Deferred revenue 281 281
Current tax payable —— —
Total current liabilities 970 — 970
Total liabilities 971 91 1,062
Total liabilities and equity 3,182 319 3,501
eg solutions plc 
annual report and accounts 2008  
50 Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
29 Explanation of Transition to IFRS continued
Reconciliation of Profit Before Tax to Net Cash Generated by Operations UK GAAP to IFRS for the Year Ended
31 January 2007
IAS 38
Intangible
UK GAAP fixed assets IFRS
£’000 £’000 £’000
Loss before tax (402) 248 (154)
Adjustments for:
Depreciation of property, plant and equipment 89 — 89
Amortisation of intangible assets — 35 35
Share option charge 51 — 51
Operating cash flows before movements in working capital (262) 283 21
Decrease/(increase) in receivables 990 — 990
Increase/(decrease) in payables 83 — 83
Cash generated by operations 811 283 1,094
eg solutions plc 
annual report and accounts 2008  
51
www.eguk.co.uk Notes to the Consolidated Financial Statements continued
for the year ended 31 January 2008
29 Explanation of Transition to IFRS continued
Reconciliation of Cash Flow Statement UK GAAP to IFRS for the Year Ended 31 January 2007
IAS 38
Intangible
UK GAAP fixed assets IFRS
£’000 £’000 £’000
Cash generated by operations 811 283 1,094
Income taxes paid (225) — (225)
Net cash from/(used in) operating activities 586 283 869
Investing activities
Purchases of other intangible assets — (283) (283)
Purchases of property, plant and equipment (80) — (80)
Interest received 113 — 113
Net cash (used in)/from investing activities 33 (283) (250)
Financing activities
Dividends paid (223) — (223)
Net cash (used in)/from financing activities (223) — (223)
Net increase/(decrease) in cash and cash equivalents 396 — 396
Cash and cash equivalents at beginning of year 2,035 — 2,035
Cash and cash equivalents at end of year
Bank balances and cash 2,431 — 2,431
eg solutions plc 
annual report and accounts 2008  
52 Notice of Annual General Meeting
eg solutions plc (the “Company”)
To the holders of ordinary shares
Notice is hereby given that the Annual General Meeting of the Company will be held at the offices of TLT Solicitors, 
Sea Containers House, 20 Upper Ground, Blackfriars Bridge, London, SE1 9LH on Tuesday 17 June 2008 at 10.30 am,
for the following purposes and, if thought fit, approve the following resolutions:
As Ordinary business
1. That the Directors’ Report and the annual report and accounts for the year ended 31 January 2008 be adopted and
approved.
2. That the Directors’ Remuneration Report for the year ended 31 January 2008 be approved.
3. That Baker Tilly UK Audit LLP be reappointed as Auditors and the Directors be authorised to fix their remuneration.
4. That Rodney Pennington Baker-Bates who retires by rotation be reappointed.
5. That Elizabeth Ann Gooch who retires by rotation be reappointed.
6. That Violetta Elizabeth Parylo who has been appointed since the last Annual General Meeting be reappointed.
As Ordinary resolution
7. That the Directors of the Company be generally and unconditionally authorised (without prejudice to all subsisting
authorities) pursuant to Section 80 of the Companies Act 1985 to exercise all the powers of the Company to allot all
the authorised but unissued shares (being 35,706,153 Ordinary Shares) in the capital of the Company (being
relevant securities within the meaning of Section 80(2) of the said Act), such authority to expire at the conclusion of
the next Annual General Meeting of the Company or, if earlier, on the expiry of 15 months from the passing of this
resolution, save that the Company may make offers or agreements before such expiry which would or might require
relevant securities to be allotted after such expiry and the Directors may allot relevant securities in pursuance of
such an offer or agreement as if the authority conferred thereby had not expired.
As Special resolution
8. That, subject to and conditional upon the passing of resolution 7 above, the Directors of the Company be
empowered pursuant to Section 95 of the Companies Act 1985 to allot for cash equity securities (as defined for the
purposes of Section 89 to 96 of the said Act) pursuant to the authority conferred by resolution 7 above as if Section
89 (1) did not apply to any such allotment provided that the power conferred by this resolution shall be limited to
the allotment of equity securities (a) up to an aggregate nominal amount of £14,294 being approximately 10% of
the Company’s issued share capital or (b) in connection with an offer of equity securities by way of rights to the
holders of existing shares in proportion (as nearly as may be) to their respective holdings of ordinary shares on a
record date fixed by the Directors but subject to such exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with any legal or practical problems under the laws or the requirements of
any regulatory body or any stock exchange in any territory or in connection with fractional entitlements or otherwise
howsoever, such power to expire at the conclusion of the next Annual General Meeting of the Company or, if earlier,
on the expiry of 15 months from the passing of this resolution, save that the Company may make offers or
agreements before such expiry which would or might require equity securities to be allotted after such expiry and
the Directors may allot equity securities in pursuance of such an offer or agreement as if the power conferred
thereby had not expired.
eg solutions plc 
annual report and accounts 2008  
53
www.eguk.co.uk Notice of Annual General Meeting continued
9. To authorise the Company generally and unconditionally, pursuant to Section 166 of the Companies Act 1985, to
make market purchases (as defined in Section 163 of the said Act) of up to 1,429,385 ordinary shares of 1p each in
the capital of the Company representing 10% of the Company’s issued share capital on such terms and in such
manner as the Directors of the Company may from time to time determine, provided that the amount paid for each
share (exclusive of expenses) shall not be more than 5% above the average of the middle market quotation for the
Company’s ordinary shares as derived from the Daily Official List of London Stock Exchange plc for the five business
days before the purchase is made, and in any event not less than 1p per ordinary share; and the authority herein
contained shall expire at the conclusion of the next annual general meeting of the Company or 15 months following
the passing of this Resolution, whichever is the first to occur, provided that the Company may, before such expiry,
make a contract to purchase its own shares which would or might be executed wholly or partly after such expiry, and
the Company may make a purchase of its own shares in pursuance of such contract as if the authority hereby
conferred had not expired.
By Order of the Board
P Bird
Secretary
9 May 2008
Registered Office:
The Roller Mill
Teddesley Road
Penkridge
Staffordshire
ST19 5BD
eg solutions plc 
annual report and accounts 2008  
54 Form of Proxy
eg solutions plc 
annual report and accounts 2008  
55
www.eguk.co.uk
For use at the 2008 Annual General Meeting of the Company to be held at the offices of TLT Solicitors, Sea Containers
House, 20 Upper Ground, Blackfriars Bridge on Tuesday 17 June 2008 at 10.30 am.
I/We
_______________________________________________________________________________________________
(full name in block capitals)
of _________________________________________ (address) ___________________________________________
being a member/members of eg solutions plc hereby appoint the Chairman of the meeting
or*________________________________________ number of shares _____________________________________
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 
17 June 2008 and at any adjournment thereof. I/We direct my/our proxy to vote in respect of the resolutions set out 
in the notice of Annual General Meeting as follows:
 Please tick here if you are appointing more than one proxy
Please indicate with an X in the space below how you wish your proxy to vote on the resolutions set out in the notice
convening the Annual General Meeting. If no indication is given, your proxy may vote or abstain from voting as he/she
thinks fit.
RESOLUTIONS
For Against Abstain
1. That the Directors’ Report and the annual report and accounts for the year ended
31 January 2008 be adopted and approved.
2. That the Directors’ Remuneration Report for the year ended 31 January 2008 be approved.
3. That Baker Tilly UK Audit LLP be reappointed as Auditors and the Directors be authorised
to fix their remuneration.
4. That Rodney Pennington Baker-Bates who retires by rotation be reappointed.
5. That Elizabeth Ann Gooch who retires by rotation be reappointed.
6. That Violetta Elizabeth Parylo who has been appointed since the last Annual General
Meeting be reappointed.
7. To authorise Directors to allot unissued shares.
8. To empower the Directors to allot equity securities for cash.
9. To authorise the Company to make market purchases of its shares.
Dated ________________________________________________________2008
Member’s signature _________________________________________________
* To appoint as a proxy a person other than the Chairman of the meeting insert the full name in the space provided. To
appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s name and the number of
shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number
of shares held by you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms
must be signed and should be returned together in the same envelope. A proxy need not be a member of the Company.
Notes
a. A member of the Company is entitled to appoint a proxy to exercise all or any of his rights to attend, speak and vote at a general meeting of the
Company. A member may appoint more than one proxy, provided that each proxy is appointed to exercise the rights attaching to different
shares. A proxy need not be a member.
b. To be effective, the instrument appointing a proxy and any authority under which it is signed (or a notarially certified copy of such authority) for
the Annual General Meeting to be held at the offices of TLT Solicitors, Sea Containers House, 20 Upper Ground, Blackfriars Bridge on Tuesday 
17 June 2008 at 10.30 am and any adjournment(s) thereof must be returned to the office of the Registrars by 15 June 2008. In each case the
proxy appointments must be received by the Company not less than 48 hours before the time appointed for holding the meeting or any
adjournment thereof. A form of proxy is enclosed with this notice. The appointment of a proxy does not preclude a member from attending the
meeting and voting in person, in which case any votes of the proxy will be superseded.
c. A corporation must execute the Form of Proxy under either its common seal or the hand of a duly authorised officer or attorney.
d. The Form of Proxy is for use in respect of the shareholder account specified above only and should not be amended or submitted in respect of a
different account.
e. The ‘Abstain’ option is to enable you to abstain on any particular resolution. Such a vote is not a vote in law and will not be counted in the votes
‘For’ and ‘Against’ a resolution.
f. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members of the
Company as at 15 June 2008 shall be entitled to attend or vote at the meeting in respect of the number of shares registered in their name at
that time. Changes to entries on the register of members after that time shall be disregarded in determining the rights of any person to attend
or vote at the meeting.
g. In order to facilitate voting by corporate representatives at the meeting, arrangements will be put in place at the meeting so that:
(i) if a corporate shareholder has appointed the Chairman of the meeting as its corporate representative with instructions to vote on a poll in
accordance with the directions of all of the other corporate representatives for that shareholder at the meeting, then on a poll those corporate
representatives will give voting directions to the Chairman and the Chairman will vote (or withhold a vote) as corporate representative in
accordance with those directions; and
(ii) if more than one corporate representative for the same corporate shareholder attends the meeting but the corporate shareholder has not
appointed the Chairman of the meeting as its corporate representative, a designated corporate representative will be nominated, from those
corporate representatives who attend, who will vote on a poll and the other corporate representatives will give voting directions to that
designated corporate representative. Corporate shareholders are referred to the guidance issued by the Institute of Chartered Secretaries
and Administrators on proxies and corporate representatives (www.icsa.org.uk)
h. Copies of the Directors’ service contracts and non-executive Directors’ letters of appointment with the company will be available for inspection at
the Registered Office of the Company during usual business hours on any weekday (Saturdays and public holidays excluded) from the date of
this Notice to the date of the meeting and from 15 minutes prior to and until the close of the meeting.
 BUSINESS REPLY SERVICE
Licence No. MB122
Capita Registrars (Proxies)
PO Box 25
Beckenham
Kent
BR3  4BR
Second fold
Third fold
and tuck in flap opposite
First fold
1 1 Our software provides real-time, consistent operational intelligence across a balanced
range of performance indicators to enable you to make the right operational decisions
— providing capacity planning, line balancing and timely reporting at multiple levels so
you can effecitvely measure, manage and improve your business operations.
Over 40,000 users trust eg — Our software is working hard for client businesses
across the globe.
  A global
operational
intelligence system
  What we do
eg operational intelligence
®
— the definitive software for
producing real-time Operations Management Information
(‘MI’), provides the most comprehensive Operations MI
available, supports the achievement of operational excellence
and enables organisations to achieve dramatic improvements
in service, efficiency and reduced costs in weeks —
guaranteed.
The eg principles of operational management
®
are based
on tried, tested and proven methodologies taken from
industry. They form the basis of a Manager and Team Leader
training and development programme in Operations
Management. Through training and skills transfer, Managers
and Team Leaders learn how to use eg operational
intelligence
®
to provide a consistent approach to
actively managing work, resources and performance.
eg operational excellence™ can be achieved by
using improved Operations MI and the eg principles of
operational management
®
to improve the end-to-end
customer service and quality experience.
operational management
practice you can measure
operational excellence
improvement you can measure
operational intelligence
performance you can measure
www.eguk.co.uk
Key
 eg offices
 eg operational intelligence
®
users
eg is the only business software application vendor that guarantees return on
investment and is paid based on the results delivered — implementations will pay
for themselves, typically within 6 months.
With over 40 current client sites, we have a wide range of reference sites to assure
you of our ability to deliver real performance improvement into your organisation. eg solutions plc
Annual report and accounts
for the year ended 31 January 2008
Stock exchange code: EGS
eg solutions plc, The Roller Mill, Teddesley Road, Penkridge, Staffordshire, ST19 5BD, UK
t: +44 (0) 1785 715772 f: +44 (0) 1785 712541
ask@eguk.co.uk www.eguk.co.uk
eg solutions plc Annual report and accounts 2008
eg solutions plc is a global business software
application vendor. Our software provides historic,
real-time and predictive Operational MI. When
implemented with our training programme for
managers and team leaders to use this
intelligence, we guarantee improvements in
operational results in short timescales.
The Company, which is listed on the Alternative
Investment Market (‘AIM’) of the London Stock
Exchange, is committed to customer satisfaction
and the ongoing development of its operations
management solutions.
corporate statement
contents
Highlights 1
Chairman’s Statement 2
Chief Executive’s Review 4
Board of Directors 10
Advisers 11
Directors’ Report 12
Corporate Governance Statement 16
Directors’ Remuneration Report 19
Directors’ Responsibilities in the Preparation
of the Financial Statements 21
Independent Auditors’ Report 22
Consolidated Balance Sheet 24
Company Balance Sheet 25
Consolidated Income Statement 26
Consolidated Statement of Recognised
Income and Expense 26
Consolidated Cash Flow Statement 27
Company Cash Flow Statement 28
Consolidated Financial Statements
Summary of Significant Accounting Policies 29
Notes to the Consolidated Financial Statements 34
Notice of Annual General Meeting 53
Form of Proxy 55