ANNUAL REPORT
AND ACCOUNTS 2006
eg solutions plc
eg solutions plc, The Roller Mill, Teddesley Road, Penkridge, Staffordshire ST19 5BD
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 2006
_cover.qxd  18/04/2006  10:57  Page 1 What we do Inner flap
Corporate statement Outer flap
Highlights 1
Chairman’s statement 2
Chief Executive Officer’s review 4
Client testimonials 8
Board of directors and corporate advisers 10
Directors’ report 12
Corporate governance statement 14
Directors’ remuneration report 16
Directors’ responsibilities 19
in the preparation of financial statements 
Independent auditors’ report 20
Profit and loss account 22
Balance sheet 23
Reconciliation of movements 24
in shareholders’ funds
Cash flow statement 25
Reconciliation of net cash flow 25
to movement in net cash/(debt)
Accounting policies 26
Notes to the financial statements 28
Notice of meeting 35
Corporate information IBC
Financial calendar IBC
Corporate statement
eg solutions plc is an IT and software support services business delivering
guaranteed improvements in operations management. We use proprietary
software packages and an operations management methodology based on
production management techniques. We deliver measurable operational
improvements in large back office environments.
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 solution. Europe
Middle
East
India
Far East
A global performance management solution
eg solutions delivers its guaranteed improvements in operations management to over 38,000 users across the UK,
India, Dubai and the Far East.
what we do
Our core values influence everything we do: 
Pragmatism 
We offer tried and tested solutions to common problems that are delivered in a straight-forward way.
We understand our clients’ business and speak their language.
Partnership 
Through our policy of skills transfer we work as a team with client staff.  
Our solutions are tailored to the needs of each client and are flexible in their application.
Challenge
We are positive, plain-speaking and honest. 
Using fact-based solutions we help our clients to challenge the way they operate and focus on achieving
radical improvements. 
Guaranteed results 
Our track record is a measure of our proven ability.
We deliver a return on investment for our clients through our risk reversal guarantee. 
Sustainability 
By integrating our solutions into each business and developing client skills, we ensure sustainability of investment
and lasting value for our clients.
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
TM
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 builds on the successes achieved through improved Operations
Management Information and the implementation of the eg principles of operational
management
TM
to improve the end-to-end customer experience and achieve world class
operational excellence.
2006 2007
Financial year end 31 January 31 January
Preliminary announcement of results 21 March March
Publication of Annual Report April April
Record date for final dividend 12 May
Annual general meeting 6 June June
Final dividend payment 12 June
Half year end 31 July 31 July
Interim results September September
Corporate information 
Registered address
The Roller Mill
Teddesley Road
Penkridge
Staffordshire ST19 5BD
Tel: +44 (0) 1785 715772
Fax: +44 (0) 1785 712541
Email: ask@eguk.co.uk
Company number
2211062
Website
www.eguk.co.uk
Nominated adviser and broker
Brewin Dolphin Securities Limited
National House
36 St Ann Street
Manchester M60 2EP
Auditors
Baker Tilly
Festival Way
Stoke-on-Trent
Staffordshire ST1 5BB
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Lawyers
Brown Rudnick Berlack Israels LLP
8 Clifford Street
London W1S 2LQ
Rodney Baker-Bates 
Non-executive Chairman 
Paul Thomas 
Non-executive Director 
Elizabeth Gooch 
Chief Executive Officer 
Jon Pyke 
Non-executive Director 
David Blain 
Finance Director 
Financial calendar
“
There is a strong ethos of directness, hard work
and partnership which receives strong approval
from clients.
”
_cover.qxd  18/04/2006  10:57  Page 2 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
TM
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 builds on the successes achieved through improved Operations
Management Information and the implementation of the eg principles of operational
management
TM
to improve the end-to-end customer experience and achieve world class
operational excellence.
2006 2007
Financial year end 31 January 31 January
Preliminary announcement of results 21 March March
Publication of Annual Report April April
Record date for final dividend 12 May
Annual general meeting 6 June June
Final dividend payment 12 June
Half year end 31 July 31 July
Interim results September September
Corporate information 
Registered address
The Roller Mill
Teddesley Road
Penkridge
Staffordshire ST19 5BD
Tel: +44 (0) 1785 715772
Fax: +44 (0) 1785 712541
Email: ask@eguk.co.uk
Company number
2211062
Website
www.eguk.co.uk
Nominated adviser and broker
Brewin Dolphin Securities Limited
National House
36 St Ann Street
Manchester M60 2EP
Auditors
Baker Tilly
Festival Way
Stoke-on-Trent
Staffordshire ST1 5BB
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Lawyers
Brown Rudnick Berlack Israels LLP
8 Clifford Street
London W1S 2LQ
Rodney Baker-Bates 
Non-executive Chairman 
Paul Thomas 
Non-executive Director 
Elizabeth Gooch 
Chief Executive Officer 
Jon Pyke 
Non-executive Director 
David Blain 
Finance Director 
Financial calendar
“
There is a strong ethos of directness, hard work
and partnership which receives strong approval
from clients.
” 1 eg solutions plc  Annual report and accounts 2006
Full year financial highlights
 Turnover up 43.3% to £5.9m (2005: £4.1m)
 Operating profit of £0.7m (2005: £0.1m)
 Adjusted operating profit
*
increased to £1.2m (2005: £1.0m)
 Earnings per share of 4.4p (2005: 0.7p)
 Adjusted earnings per share
**
of 8.3p (2005: 9.5p)
 1.1p dividend per share recommended (2005: Nil)
Key business highlights
 Launch on AIM in June 2005
 Staff numbers increased from 30 at 31 January 2005, to 51 currently
 New contracts finalised with Portman Building Society, Co-operative Group, 
Co-operative Financial Services, Nationwide Life and two UK mortgage lending
subsidiaries of a US investment bank
 New contracts since year end with Co-operative Bank and a major general insurer
 Continued investment in product development for roll out in 2006
 Client survey reveals 100% would recommend eg to a third party
 Contracted sales on hand and maintenance income scheduled for the current
financial year already total £3.0m (2005: £1.8m)
* Adjusted operating profit is defined in Note 7
** Adjusted earnings per share is defined in Note 7
Highlights 
David Blain, Finance Director
and Elizabeth Gooch, Chief Executive Officer 
_0_EG_arF06.qxd  18/04/2006  10:54  Page 1 In this first annual report as a quoted company, I am delighted to announce that eg
has delivered an exceptional performance. Our results reflect the strategic objectives
set by the Board and the strength of the proposition that we offer to our customers.
The headline numbers demonstrate substantial, profitable and manageable growth, combined
with a continuing investment in the underlying business which will ensure that the Company
can deliver comparable performance as its scale increases.
Importantly, the business has grown at the top line where sales were ahead 43% to £5.9m,
while maintaining its operating margin at the 20% level, which it has achieved over the last
three years. Adjusted operating profit was 20% higher at £1.2m.
At the time of the Company’s admission to AIM in June last year, we made clear that we
intended to follow a progressive dividend policy. I am delighted to announce with these
results that the Board is recommending a final dividend of 1.1p per share. We regard
developing a progressive dividend policy as an important obligation for a quoted company
and are delighted to be making this first payment. It reflects the Board’s satisfaction with
a successful year and confidence in the outcome for the current year.
Behind the figures, there have been some important business developments which
Elizabeth Gooch will describe in more detail in her Chief Executive Officer’s Review.
2005 saw valuable new business wins which, importantly, included an implementation in the retail
business of the Co-operative Group which is outside our traditional financial services area.
The Board continues to seek to develop the Company’s activities into new market sectors
and new territories, as well as developing our software capabilities to serve better our
clients’ needs. As well as investing in software development, we have also invested
substantially in people to broaden our sales and delivery capability. All of these developments
provide a strong foundation for the long-term growth of the business.
The admission to AIM was a key milestone for us. As well as raising £2m for the business
which will play an important part in financing its growth, it established a new set of
relationships with external shareholders and staff. Both are vital to the business and we look
forward to rewarding them both through the Company’s continued development. A flotation
period is a testing one for any company and I am delighted that throughout this our staff
worked hard to ensure the continuing success of the business.
2 eg solutions plc  Annual report and accounts 2006
Chairman’s statement
_0_EG_arF06.qxd  18/04/2006  10:54  Page 2 This has been an important, exciting and successful year for the Company. Prior to flotation
we carefully selected our Non-executive Directors based on their skills and experience
relative to our strategic objectives. Each of them has a proven track record in creating
shareholder value and has made a quality contribution to our achievements in 2005.
I particularly want to thank all our staff and my colleagues on the Board for their major
contribution. In particular, Elizabeth Gooch who founded the Company in 1988, deserves
our thanks and congratulations for creating and leading a unique business which has
enormous potential for the future.
I am also delighted to say that the current year has started well. We are encouraged by the
new business pipeline which gives us a high level of confidence in the outcome for the year.
Rodney Baker-Bates
Non-executive Chairman
20 March 2006
3 eg solutions plc  Annual report and accounts 2006
“
Importantly, the business has grown at the top line
where sales were ahead 43% to £5.9m, while maintaining
its operating margin at the 20% level which it has achieved
over the last three years. Adjusted Operating Profit was
20% higher at £1.2m.
”
_0_EG_arF06.qxd  18/04/2006  10:54  Page 3 Financial results
The year ended 31 January 2006 has seen a strong performance from the business fully justifying
our confidence when we joined AIM. Sales at £5.9m, were 43.3% ahead of last year and adjusted
operating profit was up 21.4% to £1.2m, representing 20.5% of sales. We are encouraged
by the stability in gross margin and by our performance at the net margin level, which remained
strong, notwithstanding substantial investments in both staff and product development.
Consistent with eg’s prospectus pledge to shareholders of a progressive dividend policy,
the Board is recommending a final dividend payment of 1.1p. 
Strategy
Upon admission to AIM, eg made it clear to investors that we planned to follow a growth
strategy based on two core objectives:
 to extend our activities in financial services and enter other new UK market sectors; and
 to develop our activities outside of the UK. 
These objectives underpin eg’s plans for a substantial increase in the scale of our business
over the medium-term.
Key marketing objectives
eg intends to penetrate new sectors and territories initially through the successful extension
of existing client relationships and, thereafter, based on detailed market research and planning.
In the current financial year we will:
 establish the dynamics and characteristics of our target geographic and industry markets
and structure our marketing and distribution mechanisms accordingly; and
 continue to develop our operational capability in order to increase the scale of the
business. The investments we make internally will ensure we maintain our high standard
of customer service as well as support effective client delivery.
We are currently completing implementations within the retail division of the 
Co-operative Group and this work is clearly demonstrating the applicability
of our products beyond our traditional base in financial services. 
4 eg solutions plc  Annual report and accounts 2006
Chief Executive Officer’s review
_0_EG_arF06.qxd  18/04/2006  10:54  Page 4 2005 has been a good year for client development. Highlights include new implementations
for Portman Building Society, Co-operative Financial Services, the Co-operative Group,
Nationwide Life and two subsidiaries of a US investment bank, thus broadening the eg client
base from our traditionally strong mortgage and life and pensions business.
Good progress is being made in developing our approach to overseas markets where we
intend to achieve sales later in the current financial year.
Product development 
eg software is fully developed but undergoes continual modification and improvement
to meet technological advances, customer and new market requirements. In partnership
with our clients we have formalised a software development roadmap, providing both parties
with a structured approach to enhancing and extending capabilities.
During the year we were delighted to achieve Microsoft platform certification for
eg work manager
®
version 4.94 and for eg operational intelligence
®
. In 2006
eg became a Microsoft Certified Partner within the Independent Software Vendor
competency facilitating continued competency access to Microsoft expertise, knowledge
base and tools.
Working in conjunction with Microsoft, eg’s products have demonstrated scalability up
to 10,000 users on a single server.
People 
We are pleased to announce the appointment of Ian Wright as Chief Operating Officer
who will join us in April 2006. Ian brings considerable senior IT and operational management
experience and expertise to the Company.
We have also broadened the senior management team, formalised roles and responsibilities
and commenced management development to increase their capability. 
Over the last financial year staff numbers have almost doubled from 30 to 51 with the
greater part of this increase focused on client delivery and sales. 
During 2006 we have recruited a Partner Manager and an additional Business Development
Manager. These organisational changes will enable me to focus on eg’s international strategy.
5 eg solutions plc  Annual report and accounts 2006
“
Good progress is being made in developing our
approach to overseas markets where we intend
to achieve sales later in the current financial year.
”
_0_EG_arF06.qxd  18/04/2006  10:54  Page 5 6 eg solutions plc  Annual report and accounts 2006
Chief Executive Officer’s review (continued)
Customer feedback
As a customer-centric organisation, we undertook a major project in 2005 to discover more
about client perception of the eg brand. Of the clients surveyed, 100% stated that they
would recommend eg to a third party. The survey revealed that hard work and a sense of
partnership, coupled with energy and enthusiasm have made a significant impact on the client
experience. 
The survey also highlighted the opportunity to enhance product support and this is an area
of focus for 2006.
Impact of IPO
The Company raised a net £2m and came to AIM in June last year, in what has been a major
strategic development for the business.
As well as providing funding to develop our resources, expertise and the management team,
the IPO brought a range of additional benefits. It strengthened our ability to recruit the
people we wanted and has given us a public visibility which we believe has been valuable
in our business development.
The share option scheme has meant that everybody at eg has an interest in the business.
This has had a noticeable effect on performance and focus.
The obligation to shareholders and the strategic objectives that we have laid out have speeded
the decision making process and improved performance monitoring and accountability. While
the disciplines of running a quoted company have been good for us, we have made best use
of the opportunities that a quotation offers and will continue to do so.
_0_EG_arF06.qxd  18/04/2006  10:54  Page 6 Current trading
The year has started well and contracted sales on hand and maintenance income scheduled
for the current financial year already total £3m compared to £1.8m at this time last year.
The pipeline for new business is buoyant and we are encouraged by the level of visibility
that we already have for 2006/7.
Conclusion and outlook
The Board is delighted with our strong revenue growth and the expansion of the Company
in its first year since launching on AIM. It is a substantial achievement to be in a position to
reward shareholders with a dividend in our maiden year. eg’s success is a testament to the
capabilities of our products, our people and the broadening of our client base outside
mortgages and life and pensions. The investment in personnel has enabled us both to grow
revenue and profits whilst maintaining the high standards of client delivery. We anticipate
a highly productive year ahead releasing new versions of our software, and continuing to
demonstrate applicability of our products across all market sectors.
Elizabeth Gooch
Chief Executive Officer 
20 March 2006
7 eg solutions plc  Annual report and accounts 2006
“
The pipeline for new business is buoyant and we are
encouraged by the level of visibility that we already
have for 2006/7.
”
_0_EG_arF06.qxd  18/04/2006  10:54  Page 7 “The combination of training and supporting
tools and techniques provided by eg was
quickly deployed, allowing us to achieve
benefits within weeks. By redeploying
resources we were able to raise the
overall standards of customer service while
simultaneously reducing costs. This was
possible because the first stage in the
implementation of eg work manager
®
identified where immediate benefits were
achievable. During 2005, eg’s approach to
skills transfer and people development
enabled our managers and staff to maintain
early gains, streamline the way our key
processes work, while building confidence
and ability to look ahead to the next level
of improvements.”
Shelagh Everett, Director of Business Process
Improvement at Co-operative Financial Services
“We have achieved bottom line cost
savings and improvements in performance
through the consistent management
information eg work manager
®
provided. The results fully support our
decision to work with eg. eg’s approach
has given us a consistent way to manage
and make fact based decisions; decisions
that will assist us in achieving future
growth and continuing improvements.”
Mark Goldman, Director of Production
and Operations, Portman Building Society
8 eg solutions plc  Annual report and accounts 2006
Why people choose eg:
In the survey we received an overall satisfaction rating
of 80% and 100% of our clients would recommend us to
other clients.
2006 client survey conducted with eg client base.
30%
45%
25%
Recommendation Attitudes
and values
Complete
Solution
Client testimonials
_0_EG_arF06.qxd  18/04/2006  10:54  Page 8 “eg’s track record of delivery and
market leading approach to production
management has been key to enabling
our improvement in service and people
management. We have made significant
steps to transform our performance
in key customer facing areas as a result
of their work and support. Their ability
to work with and transfer skills to our
people has delivered the improvements
we were looking for in a lasting and
tangible way, helping us on the road to
becoming the UK’s most admired financial
services business.”
Stephen Pater, Executive Director,
Distribution and Service at CFS
9 eg solutions plc  Annual report and accounts 2006
We have announced numerous contract wins since
joining AIM in June 2005 and have delivered various
benefits to our clients, some of them share these
in their own words... 
_0_EG_arF06.qxd  18/04/2006  10:54  Page 9 10 eg solutions plc  Annual report and accounts 2006
Board of directors and corporate advisers
Rodney Baker-Bates 
Non-executive Chairman
In addition to being Chairman
of the Executive Managing
Partners of C. Hoare & Co., 
a private bank, Rodney currently
chairs a number of corporate 
and trustee boards, as well
as chairing both audit and
remuneration committees.
He was the Chief Executive
at Prudential Financial Services
until 2002, following five years
at the BBC where he was
Director of Finance and
Information Technology. Prior
to the BBC, Rodney was the
Managing Director, UK Banking,
at Midland Bank plc.
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
where, as the building society
introduced new products, she
turned complex requirements
into practical processes which
were easy to use and understand.
In 1988, Elizabeth branched out
on her own and established the
software and services company,
eg. Working for manufacturers,
Elizabeth hit on the idea
of introducing their lean
production techniques,
focussed on eliminating waste,
into the back offices of financial
services businesses. Today,
having successfully implemented
production management
methods at big 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.
David Blain 
Finance Director 
David Blain, a Chartered
Accountant and former
Senior Manager at
PricewaterhouseCoopers,
joined eg during December
2004 as Finance Director and
Company Secretary. Prior to
joining eg, David was Finance
Director and Company Secretary
at Drew Scientific Group plc.
During his ten years with
Drew Scientific, David oversaw
all fundraisings, totalling
approximately £20m, and was
directly involved in three US
acquisitions. Working closely
with the Chief Executive Officer,
David was also involved in all
strategic and operational matters.
_0_EG_arF06.qxd  18/04/2006  10:55  Page 10 11 eg solutions plc  Annual report and accounts 2006
Jon Pyke 
Non-executive Director 
Jon Pyke was the Chief
Technology Officer and a main
Board Director of Staffware Plc
from August 1992 until its
acquisition by Tibco Inc. in 2004.
As the CTO of Staffware Plc, Jon
was responsible for a team of 70
people, geographically split into
two countries (USA and the UK)
and four locations. Jon’s primary
responsibility was directing the
product development cycle.
Furthermore, he had overall
Executive responsibility for the
product strategy and positioning.
Finally, as a main Board Director
he was heavily involved in the PLC
Board activities including mergers
and acquisitions, corporate
governance, and was a Board
Director of several subsidiaries. 
Paul Thomas 
Non-executive Director 
Paul Thomas is currently
Head of Originations at
GE Money Lending Ltd.
Paul is a highly self motivated
and entrepreneurial Director
whose responsibilities have
been wide ranging resulting
in the successful development
of several start-up companies.
He has worked for a number
of companies in the UK lending
environment including Opus
Commercial (Business Finance),
Mortgages plc, Kensington
Mortgage Company Limited
and Royal Bank of Scotland Plc. 
Company advisers 
Nominated adviser and broker
Brewin Dolphin Securities Limited
National House
36 St Ann Street
Manchester M60 2EP
Auditors
Baker Tilly
Chartered Accountants
Festival Way
Stoke-on-Trent
Staffordshire ST1 5BB
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Lawyers
Brown Rudnick Berlack Israels LLP
8 Clifford Street
London W1S 2LQ
_0_EG_arF06.qxd  18/04/2006  10:55  Page 11 12 eg solutions plc  Annual report and accounts 2006
Directors’ report
The Directors submit their report and the financial statements of eg solutions plc for the year ended 31 January 2006.
Principal activities
The principal activity of the Company is that of an IT and software support services business delivering guaranteed improvements in operations
management. The Company uses proprietary software packages and an operations management methodology based on production management
techniques. The Company delivers measurable operational improvements in large back office environments.
Results and dividends 
The retained profits for the year are £530,000 (2005: £70,000). 
The Directors recommend a final dividend on the ordinary shares of 1.1p per share (2005: £Nil) (amounting to £157,000) and this will be
put to shareholders for approval at the annual general meeting.
Review of the business
A review of the business is included in the Chairman’s Statement and Chief Executive Officer’s Review on pages 2 to 7.
Future developments
The Company is planning to follow 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.
Political and charitable contributions
During the year the Company made charitable donations of £1,791, principally to local charities serving the communities in which the
Company operates.
Research and development
The Company invests in the continual modification and improvement of its products to meet technological advances, customer and new
market requirements.
Employee involvement and disability
The Company’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
Company’s performance.
The Company’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.
Re-registration as a public limited company and admission to AIM
On 18 May 2005 the Company registered as a public limited company under the Companies Act 1985 with the name of eg solutions plc.
The Company was admitted to AIM on 6 June 2005 and on that date issued 4,117,647 new ordinary shares.
Directors
The following Directors have held office since 1 February 2005:
RP Baker-Bates 
EA Gooch
DJ Blain
J Pyke 
P Thomas
PE Maguire (appointed 6 June 2005, resigned 21 December 2005)
_0_EG_arB06.qxd  18/04/2006  10:56  Page 12 13 eg solutions plc  Annual report and accounts 2006
Directors’ interests in shares 
Directors’ interests in the shares of the Company, including family interests, were as follows:
Beneficial
Ordinary shares Ordinary shares
of 1p each of £1 each
31 January 2006 31 January 2005
Beneficial
RP Baker-Bates 407,000 —
EA Gooch 8,567,730 101,512
DJ Blain — —
J Pyke — —
P Thomas — —
DJ Blain has the right to acquire shares in the Company via the exercise of options granted under the terms of the Share Option Scheme.
EA Gooch and DJ Blain have non-beneficial interests in 1,176,470 shares which are held on behalf of the eg solutions plc Employee
Benefit Trust.
Policy on payment of creditors 
It is Company 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 2006 were 78 days (2005: 36 days).
Substantial shareholdings
On 16 March 2006 no person has reported an interest of more than 3% of the Company’s issued share capital.
Auditors
A resolution to re-appoint Baker Tilly as auditors will be put to the members at the annual general meeting.
Annual general meeting
The first annual general meeting of the Company following its admission to AIM will be held on 6 June 2006 at the offices of Brown Rudnick
Berlack Israels LLP, 8 Clifford Street, London W1S 2LQ.
In addition to the ordinary business customarily conducted at annual general meetings, the Board proposes three items of special business:
Resolution 7 (Ordinary Resolution). This is an authority to permit the Directors to allot shares and other securities, in accordance with
Section 80 of the Companies Act 1985, up to a maximum equivalent to 4,764,615 ordinary shares. This is the ‘Section 80 Amount’ and is
equal, as nearly as may be, to 33.3% of the Company’s issued share capital as at 20 March 2006.
Resolution 8 (Special Resolution). The Directors are also seeking authority under Section 95 of the Companies Act 1985 and by way of
disapplication of the restrictions in Section 89 of the Companies act 1985 to issue ordinary shares for cash, other than by way of a rights
issue, up to a maximum equivalent of 1,429,385 shares. This is the ‘Section 89 Amount’ and is equal as nearly as may be to 10% of the
Company’s issued share capital as at 20 March 2006.
Resolution 9 (Special Resolution). Authority is also being sought for the Company to purchase up to 10% of its ordinary issued share capital.
This resolution specifies the maximum number of ordinary shares which may be purchased and the minimum and maximum prices at which
they may be bought. The Directors will exercise this authority only when to do so would be in the interests of shareholders generally.
The Directors have no present intention of exercising the above authorities which will expire on the date of the Company’s annual general
meeting in 2007 or fifteen months from their adoption, whichever is the earlier.
By order of the Board
DJ Blain
Secretary
20 March 2006
_0_EG_arB06.qxd  18/04/2006  10:56  Page 13 14 eg solutions plc  Annual report and accounts 2006
Corporate governance statement
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 two independent
Non-executive Directors. Their biographies appear on pages 10 and 11. 
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 19. 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 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 16 to 18; and
 the Audit Committee comprises three Non-executive Directors and is chaired by the Chairman. 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.
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.
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Internal control
The Directors are responsible for the Company’s system of internal control and reviewing its effectiveness.
The Board has designed the Company’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 Company’s financial performance against approved budgets and forecasts; and
 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 Company 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.
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 significant issues disclosed in the annual report and accounts for the year ended 31 January 2006 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 Company 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 Company’s strategy and governance. During the year the
Directors had nine meetings with institutional investors covering the majority of shareholders in the Company.
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 6 June 2006. The notice of the annual general meeting may be found on page 35.
Going concern
The Directors confirm that they are satisfied that the Company 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.
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Remuneration Committee
The Company has established a Remuneration Committee which is constituted in accordance with the recommendations of the Combined
Code. The members of the Committee are J Pyke and P Thomas who are both independent Non-executive Directors 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 market place.
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.
There is no limit to the maximum performance related bonus that can be paid. Incentive payments for the year ended 31 January 2006 varied
between Nil% and 56.7%.
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. 
Pension arrangements
Executive Directors are members of defined contribution pension schemes and a contribution of 10% of basic annual salary is paid by the
Company. No other payments to Directors are pensionable.
Directors’ contracts
It is the Company’s policy that Executive Directors should have contracts with an indefinite term providing for a maximum of one year’s notice.
In the event of early termination, the Directors’ contracts provide for compensation up to a maximum of basic salary for the notice period.
EA Gooch is proposed for re-election at the forthcoming annual general meeting and has a notice period of one year under her service contract.
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 Company’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.
RP Baker-Bates is proposed for re-election at the forthcoming annual general meeting and has a notice period of one year under his
service contract.
Directors’ remuneration report
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Performance graph
Aggregate Directors’ remuneration
The total amount of Directors’ remuneration was as follows:
2006 2005
£’000 £’000
Emoluments 1,149 1,131
Money purchase pension contributions 42 24
Total 1,191 1,155
Total Total
Salary Benefits Bonuses Other 2006 2005
£’000 £’000 £’000 £’000 £’000 £’000
RP Baker-Bates 30 — — — 30 15
EA Gooch 622 32 85 — 739 1,067
DJ Blain 125 12 — — 137 14
J Pyke 15 — — 50 65 18
P Thomas 15 — — — 15 17
PE Maguire 106 7 — 50 163 —
913 51 85 100 1,149 1,131
Included above are payments of £50,500 (2005: £18,000) made to The Process Factory Limited for services rendered by J Pyke.
        








 
MAY JUN JUL AUG SEP OCT NOV DEC JAN
90
100
110
120
130
140
150
160
170
180
EG SOLUTIONS - TOT RETURN IND
FTSE SMALL CAP - TOT RETURN IND
Source: DATASTREAM
The graph shows the total return to an eg solutions shareholder
since flotation compared with the total return to an investor
in a representative portfolio of shares from the FTSE SmallCap
index. The graph does not show relative share price performance
but demonstrates the growth in value of the relevant share holding
over the period assuming that all dividends received are reinvested
in further relevant shares at the closing price prevailing on the 
ex-dividend date.
The graph shows the movement of eg’s share price from 6 June 2005.
_0_EG_arB06.qxd  18/04/2006  10:56  Page 17 18 eg solutions plc  Annual report and accounts 2006
The pension contributions payable by the Company in respect of each Director during the year were:
2006 2005
£’000 £’000
RP Baker-Bates — —
EA Gooch 24 24
DJ Blain 12 —
J Pyke — —
P Thomas — —
PE Maguire 6 —
42 24
Directors’ share options
Market price
Options at Options Options Options Options at Exercise at date of Date from 
1 February granted lapsed exercised 31 January price exercise which Expiry 
2005 in year in year in year 2006 (pence) (pence) exercisable date
DJ Blain — 203,500 — — 203,500 3.5p — 20 April 2009 19 April 2015
PE Maguire — 285,677 (285,677) ——————
152,625 of the Directors’ share options are subject to performance criteria relating to earnings per share growth. The remaining 50,875
options are not subject to performance criteria.
The market price of the shares at 31 January 2006 was 148.5p and the range during the period since admission to AIM on 6 June 2005
was 85.0p to 148.5p.
Approval
This report was approved by the Board of Directors on 20 March 2006 and signed on its behalf by:
DJ Blain
Secretary
20 March 2006
Directors’ remuneration report (continued)
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Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state
of affairs of the Company and of its profit or loss for that period. In preparing those financial statements, the Directors are required to:
a. select suitable accounting policies and then apply them consistently;
b. make judgements and estimates that are reasonable and prudent;
c. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the
financial statements; and
d. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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 Company and to enable them to ensure that the financial statements comply with the requirements of the Companies Act
1985. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are also responsible for the maintenance and integrity of the eg solutions plc website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in
other jurisdictions.
Directors’ responsibilities in the preparation of financial statements
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We have audited the financial statements on pages 22 to 34.
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 United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice) 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, in our opinion, the Directors’ Report is not consistent with the financial statements,
if 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 only the Chairman’s Statement and Chief Executive Officer’s Review, Directors’ Report, Corporate
Governance Statement and 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.
Opinion
In our opinion the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice,
of the state of the Company’s affairs at 31 January 2006 and of its profit for the year then ended and have been properly prepared in accordance
with the Companies Act 1985.
Baker Tilly
Registered Auditor
Chartered Accountants 
Festival Way
Stoke-on-Trent
Staffordshire ST1 5BB
20 March 2006
Independent auditors’ report 
to the members of eg solutions plc
_0_EG_arB06.qxd  18/04/2006  10:56  Page 20 Profit and loss account 22
Balance sheet 23
Reconciliation of movements 24
in shareholders’ funds
Cash flow statement 25
Reconciliation of net cash flow 25
to movement in net cash/(debt)
Accounting policies 26
Notes to the financial statements 28
Notice of meeting 35
Corporate information IBC
Financial calendar IBC
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2006 2005
Notes £’000 £’000
Turnover 1 5,879 4,103
Cost of sales (1,572) (1,045)
Gross profit 4,307 3,058
Administrative expenses (3,569) (2,957)
Operating profit 738 101
Other interest receivable and similar income 2 50 1
Interest payable and similar charges 3 (19) (11)
Profit on ordinary activities before taxation 4 769 91
Tax on profit on ordinary activities 6 (239) (21)
Profit for the financial year 15 530 70
Earnings per share 7
– basic 4.4p 0.7p
– fully diluted 4.3p 0.7p
Adjusted earnings per share 7
– basic 8.3p 9.5p
– fully diluted 8.1p 9.5p
Turnover and operating profit are derived from the Company’s continuing operations.
No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been dealt with in the
Profit and Loss Account.
Profit and loss account
for the year ended 31 January 2006
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2006 2005
Notes £’000 £’000
Fixed assets
Tangible assets 8 141 75
141 75
Current assets
Stocks 9 27 24
Debtors due within one year 10 1,575 416
Cash at bank and in hand 2,035 410
3,637 850
Current liabilities
Creditors: amounts falling due within one year 11 (1,218) (913)
Net current assets/(liabilities) 2,419 (63)
Total assets less current liabilities 2,560 12
Deferred tax 12 (4) (4)
Net assets 2,556 8
Capital and reserves
Called up share capital 13 143 101
Share premium account 15 2,910 6
Capital reserve 15 72 —
Own shares held (1,000) —
Profit and loss account 15 431 (99)
Equity shareholders’ funds 2,556 8
These financial statements on pages 22 to 34 were approved by the Board of Directors on 20 March 2006 and authorised for issue on
20 March 2006 and are signed on its behalf by:
EA Gooch
Chief Executive Officer
Balance sheet
at 31 January 2006
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2006 2005
£’000 £’000
Profit for the financial year 530 70
New share capital subscribed 3,500 —
Share issue costs (554) —
Capital reserve movement 72 —
Purchase of own shares (1,000) —
Net addition to shareholders’ funds 2,548 70
Opening shareholders’ funds/(deficit) 8 (62)
Closing shareholders’ funds 2,556 8
Reconciliation of movements in shareholders’ funds
for the year ended 31 January 2006
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2006 2005
Notes £’000 £’000
Cash flow from operating activities 16 (210) 576
Returns on investments and servicing of finance 16 31 (10)
Taxation — 3
Capital expenditure and financial investment 16 (1,118) (29)
Cash (outflow)/inflow before financing (1,297) 540
Financing 16 2,946 —
Increase in cash in the period 1,649 540
Reconciliation of net cash flow to movement in net cash/(debt)
2006 2005
£’000 £’000
Increase in cash in the period 1,649 540
Net cash/(debt) at 1 February 2005 386 (154)
Net cash at 31 January 2006 2,035 386
Cash flow statement
for the year ended 31 January 2006
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the
Company’s financial statements.
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
The Company has one subsidiary company, eg international limited, which is dormant and has cash and issued share capital of £2 with
no other assets and liabilities. Consolidated accounts have not been prepared as the subsidiary is insignificant.
Fixed assets and depreciation
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
Leased assets and obligations
Where assets are financed by leasing agreements that give rights approximating to ownership (“finance leases”), the assets are treated as if
they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term.
The corresponding leasing commitments are shown as obligations to the lessor. 
Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the Profit and Loss Account in
proportion to the remaining balance outstanding. 
All other leases are “operating leases” and the annual rentals are charged to the Profit and Loss Account on a straight line basis over the
lease term. 
Post-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 against profits represents the contributions payable to the scheme in respect
of the accounting period.
Research and development expenditure
Expenditure on research and development is written off against profits in the year in which it is incurred.
Stocks
Stocks are stated at the lower of cost and net realisable value.
Maintenance contracts
Income in respect of maintenance contracts is spread over the length of the contract to match the revenue and the costs.
Long-term contracts
Long-term contracts are assessed on a contract by contract basis and reflected in the Profit and Loss Account by recording turnover and
related costs as contract activity progresses. Turnover 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. The amount by 
which turnover exceeds payments on account is classified as “amounts recoverable on contracts” and included in debtors; to the extent
that payments on account exceed relevant turnover, the excess is included as a creditor. The amount of long-term contracts, at cost net
of amounts transferred to cost of sales, less provision for foreseeable losses and payments on account not matched with turnover,
is included within stocks.
Accounting policies 
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Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at
the balance sheet date. Timing differences are differences between the Company’s taxable profits and its results, as stated in the financial
statements, that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised
in the financial statements. 
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to
reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured
on a non-discounted basis. 
Turnover
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers. Income is
recognised at the date of invoice except where the income is either related to short-term or long-term contracts which are then accounted
for in accordance with SSAP 9 or maintenance income.
Employee share ownership plans (“ESOP”)
The Company has an ESOP trust and has defacto control of the shares held by the trust and bears their benefits and risks. The Company
records certain assets and liabilities of the trust as its own. Finance costs and administrative expenses are charged as they accrue.
Changes in accounting policies and estimation techniques
The following new Financial Reporting Standards (“FRS”) and Statutory Instruments have been adopted for the first time, in these
financial statements:
 FRS 21 – Events after the balance sheet date;
 FRS 22 – Earnings per share;
 FRS 25 – Financial instruments: Disclosure and presentation (presentation requirement only); and
 FRS 28 – Corresponding amounts.
There has been no impact on the financial statements except details of earnings per share have been disclosed. No prior period adjustments
have resulted from the adoption of their standards.
In addition, the Company has elected to adopt FRS 20 – Share based payment early. This standard is mandatory for accounting periods
commencing on or after 1 January 2006.
Capital reserve
The Company operated a share option scheme, the reserve represents the charge to the profit and loss account based on the Directors’
estimate of the cost of these options in line with FRS 20.
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1 Segmental report
Net assets, turnover and profit before taxation are derived from the Company’s principal activity in the United Kingdom.
2 Other interest receivable and similar income
2006 2005
£’000 £’000
Bank interest 50 1
3 Interest payable and similar charges
2006 2005
£’000 £’000
On bank loans and overdrafts 19 11
4 Profit on ordinary activities before taxation
2006 2005
£’000 £’000
Profit on ordinary activities before taxation is stated after charging:
Auditors’ remuneration 14 7
Depreciation and other amounts written off tangible fixed assets – owned 52 30
Hire of other assets – operating leases 54 54
Research and development expenditure 292 298
2006 2005
£’000 £’000
Amounts payable to Baker Tilly and their associates
Audit service – statutory audit 8 8
Tax services – advisory services 3 1
Other services – flotation costs 89 —
100 9
5 Employees
The average monthly number of persons (including Directors) employed by the Company during the year was:
2006 2005
Number Number
Professional services 16 9
Software support and development 13 9
Marketing 5 2
Management and administration 6 9
40 29
Staff costs for above persons:
2006 2005 
£’000 £’000
Wages and salaries 2,773 2,215
Social security costs 317 288
Other pension costs 76 62
3,166 2,565
Notes to the financial statements 
for the year ended 31 January 2006
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5 Employees (continued)
Directors’ remuneration
2006 2005
£’000 £’000
Emoluments 1,149 1,131
Money purchase pension contributions 42 24
Total emoluments 1,191 1,155
The aggregate of emoluments and amounts receivable under long-term incentive schemes of the highest paid Director was £739,000
(2005: £1,062,499) and Company pension contributions of £24,264 (2005: £24,264) were made to a money purchase pension scheme on
her behalf.
2006 2005
No. No. 
Number of Directors to whom relevant benefits are accruing under money purchase pension schemes 3 1
Further details relating to the Directors’ remuneration are set out in the Directors’ Remuneration Report.
6 Taxation
2006 2005
£’000 £’000
Current tax:
UK corporation tax on profits of the period 239 —
Total current tax 239 —
Deferred taxation:
Origination and reversal of timing differences — 21
Tax on profit on ordinary activities 239 21
Factors affecting tax charge for period
The tax assessed for the period is lower (2005: lower) than the standard rate of corporation tax as explained below:
2006 2005
£’000 £’000
Profit on ordinary activities before tax 769 91
Profit on ordinary activities multiplied by the standard rate of corporation tax of 30% (2005: 19%) 231 17
Expenses not deductible for tax purposes 74 7
Depreciation in excess of capital allowances for the period (2) —
Loss relief utilised (10) (24)
Additional reliefs research and development (36) —
Small companies relief (18) —
Current tax charge for period 239 —
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Notes to the financial statements (continued)
for the year ended 31 January 2006
7 Earnings per ordinary share 
The calculations of earnings per share are based on the following profits:
2006 2005 2006 2005
Basic Basic Diluted Diluted
£’000 £’000 £’000 £’000
Profit for the financial year 530 70 530 70
The adjusted earnings per share have been calculated for illustrative purposes only to give shareholders an indication of what the earnings
per share of the Company would have been if the Chief Executive Officer’s present remuneration arrangements had been in place since
1 February 2004. The adjusted earnings per share are based on the following profits:
2006 2005
£’000 £’000
Profit for the financial year 530 70
Add actual salary paid 622 1,046
Deduct new salary (150) (150)
Adjusted profit 1,002 966
The calculations of earnings per share are based on the following weighted average number of shares:
2006 2005
No. of shares No. of shares
For basic earnings per share 12,102,067 10,176,200
Exercise of share options 274,000 —
For diluted earnings per share 12,376,067 10,176,200
Adjusted operating profit is calculated as follows:
2006 2005
£’000 £’000
Operating profit 738 101
Add actual salary paid 622 1,046
Deduct new salary (150) (150)
Adjusted operating profit 1,210 997
8 Tangible fixed assets
Computer Fixtures
and office and Motor 
equipment fittings vehicles Total
£’000 £’000 £’000 £’000
Cost
At beginning of year 202 82 6 290
Additions 104 14 — 118
At end of year 306 96 6 408
Depreciation
At beginning of year 166 45 4 215
Charge for year 45 7 — 52
At end of year 211 52 4 267
Net book value
At 31 January 2006 95 44 2 141
At 31 January 2005 36 37 2 75
_0_EG_arB06.qxd  18/04/2006  10:56  Page 30 9 Stocks
2006 2005
£’000 £’000
Raw materials 27 24
10 Debtors
2006 2005
£’000 £’000
Due within one year:
Trade debtors 893 130
Prepayments and accrued income 94 72
Other debtors — 50
Amounts recoverable on contracts 588 164
1,575 416
Other debtors include £Nil (2005: £49,249) due from EA Gooch. The maximum amount outstanding during the year was £49,249
(2005: £49,249). 
11 Creditors
2006 2005
£’000 £’000
Amounts falling due within one year:
Bank overdraft — 24
Trade creditors 336 148
Corporation tax 239 —
Other taxation and social security 255 252
Accruals and deferred income 388 94
Payments on account — 395
1,218 913
12 Deferred tax
£’000
Balance at 31 January 2005 4
Profit and loss charge —
Balance at 31 January 2006 4
Deferred taxation provided in the financial statements is as follows:
2006 2005
Provided Provided
£’000 £’000
Excess of tax allowances over depreciation 4 4
Other timing differences — —
Deferred taxation liability 4 4
31 eg solutions plc  Annual report and accounts 2006
_0_EG_arB06.qxd  18/04/2006  10:56  Page 31 32 eg solutions plc  Annual report and accounts 2006
Notes to the financial statements (continued)
for the year ended 31 January 2006
13 Share capital
2006 2005
£’000 £’000
Authorised:
50,000,000 (2005: Nil) ordinary shares of 1p each 500 —
– (2005: 467,864) ordinary shares of £1 each — 468
– (2005: 10,712) A ordinary shares of £1 each — 11
– (2005: 21,424) B ordinary shares of £1 each — 21
500 500
Allotted, issued and fully paid:
14,293,847 (2005: Nil) ordinary shares of 1p each 143 —
– (2005: 101,762) ordinary shares of £1 each — 101
On 19 May 2005 the ‘A’ ordinary shares and ‘B’ ordinary shares were converted into and redesignated as ordinary shares of £1 each ranking
pari passu in all respects with the ordinary shares of £1 each.
On 19 May 2005 each of the 500,000 £1 ordinary shares were sub-divided into 100 ordinary shares of 1p each.
On 6 June 2005, as part of the admission to AIM of the Company’s issued and to be issued share capital, 4,117,647 ordinary shares of 1p
each were issued for cash consideration of 85p each. The excess of the issue proceeds over the nominal value, net of costs, has been
credited to the share premium account.
14 Share schemes
The Company has granted options, which remain exercisable, to subscribe for ordinary shares of 1p each, as follows:
No. of shares for
Subscription
which rights are exercisable
price per share Period within which 31 January 1 February
Grant date (p) options are exercisable 2006 2005
20 April 2005 3.5p 21 April 2009 – 20 April 2015 483,500 —
14 July 2005 102.5p 15 July 2009 – 14 July 2015 195,000 —
19 December 2005 146.5p 20 December 2009 – 19 December 2015 9,000 —
687,500 —
285,677 options were granted on 6 June 2005 and lapsed on 21 December 2005.
Pursuant to resolutions passed by the Company on 19 May 2005, eg solutions Employee Benefit Trust Limited purchased 1,176,470 ordinary
shares of 1p, being 8.2% of the called up capital, for £1m for the purpose of securing the shares to satisfy the exercise of share options.
The maximum number of shares held during the year was 1,176,470, having a nominal value of £11,765 (8.2% of called up capital). The shares
owned by eg solutions Employee Benefit Trust Limited are not used as security for any purpose.
15 Reserves
Share Profit
Capital premium and loss
reserve account account
£’000 £’000 £’000
At beginning of year — 6 (99)
Profit for the financial year — — 530
Premium on allotment during the year — 3,458 —
Share issue costs — (554) —
Charge for the year 72 — —
At end of year 72 2,910 431
_0_EG_arB06.qxd  18/04/2006  10:56  Page 32 16 Cash flows
a Reconciliation of operating profit to net cash (outflow)/inflow from operating activities
2006 2005
£’000 £’000
Operating profit 738 101
Depreciation 52 30
Share option charge 72 —
(Increase)/decrease in stocks (3) 16
(Increase)/decrease in debtors (1,159) 75
Increase in creditors 90 354
Cash (outflow)/inflow from operating activities (210) 576
b Analysis of cash flows for headings netted in the cash flow statement
2006 2005
£’000 £’000
Returns on investments and servicing of finance
Interest received 50 1
Interest paid (19) (11)
Net cash inflow/(outflow) for returns on investment and servicing of finance 31 (10)
Capital expenditure and financial investment
Purchase of tangible fixed assets 118 29
Purchase of own shares 1,000 —
Net cash outflow for capital expenditure and financial investment 1,118 29
Financing
Issue of ordinary share capital 3,500 —
Share issue costs (554) —
Debt due within one year:
– increase in short-term borrowings 1,000 —
Loan repayments (1,000) —
Net cash inflow from financing 2,946 —
c Analysis of net debt
At At
1 February Cash 31 January
2005 flow 2006
£’000 £’000 £’000
Cash in hand, at bank 410 1,625 2,035
Overdrafts (24) 24 —
386 1,649 2,035
33 eg solutions plc  Annual report and accounts 2006
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17 Commitments
Capital commitments at the end of the financial year for which no provision has been made are £Nil (2005: £Nil).
At 31 January 2006 the Company had annual commitments under non-cancellable operating leases as follows:
2006 2005
Land and Land and
buildings Other buildings Other
£’000 £’000 £’000 £’000
Operating leases which expire:
Within one year —— ——
In the second to fifth years inclusive 46 — 33 —
46 — 33 —
18 Pension scheme
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 pension charge for the year represents contributions payable by the Company to the fund and
amounted to £76,000 (2005: £62,000). There were no contributions outstanding at the year end (2005: £Nil).
19 Financial instruments
Fair value of financial instruments used for risk management
The Company’s financial instruments comprise cash and various net working capital items, such as trade debtors and trade creditors that arise
directly from its operations. The main purpose of these financial instruments is to fund that part of the Company’s operations not funded by way
of equity and retained earnings.
The main risks associated with the Company’s financial instruments are interest rate risk and liquidity risk. Short-term debtors and creditors
are excluded from these disclosures.
All financial assets and liabilities are stated in the accounts at their cost. As all financial assets and liabilities are at floating rates of interest,
there is no difference between fair value and book values of the Company’s financial instruments, calculated on a discounted cash flow basis.
The fair value of the Company’s financial instruments are as follows:
2006 2005
Book Fair Book Fair 
value value value value
£’000 £’000 £’000 £’000
Cash at bank and in hand 2,035 2,035 410 410
Bank overdraft —— (24) (24)
Net cash 2,035 2,035 386 386
Currency and interest rate exposure of financial assets and liabilities
The currency and interest rate exposure of the financial assets of the Company are as follows:
2006 2005
Floating Floating 
rate Total rate Total
£’000 £’000 £’000 £’000
Sterling 2,035 2,035 386 386
The floating rate cash deposits bear interest based on LIBOR. There are no hedges at 31 January 2006 (2005: Nil).
20 Ultimate controlling party
The Company is under the control of EA Gooch.
Notes to the financial statements (continued)
for the year ended 31 January 2006
_0_EG_arB06.qxd  18/04/2006  10:56  Page 34 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 Brown Rudnick Berlack Israels LLP,
8 Clifford Street, London W1S 2LQ on Tuesday 6 June 2006 at 11.00 am for the following purposes:
To consider, 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 2006 be adopted and approved.
2. That the Directors’ Remuneration Report for the year ended 31 January 2006 be approved.
3. To approve the final dividend.
4. That EA Gooch, who retires by rotation, be re-elected as a Director.
5. That RP Baker-Bates, who retires by rotation, be re-elected as a Director.
6. That Baker Tilly be re-appointed as auditors and the Directors be authorised to fix their remuneration.
As Special Business
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 in the
capital of the Company (being relevant securities within the meaning of Section 80(2) of the said Act) being up to a maximum nominal
amount of £47,646, 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.
Special Resolution
8. That 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) 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.
Special Resolution 
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 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 pursuant of such contract as if the authority hereby conferred had not expired.
By order of the Board
DJ Blain
Secretary
20 March 2006
35 eg solutions plc  Annual report and accounts 2006
Notice of meeting
_0_EG_arB06.qxd  18/04/2006  10:56  Page 35 Notes
a. Every member entitled to attend and vote at the meeting may appoint another person as his/her proxy to attend and vote thereat
instead of him/her and such proxy need not be a member. Forms appointing proxies must be deposited at the office of the Registrars
by 11.00 am on 4 June 2006.
b. Subject to the recommendation as to the payment of the final dividends being adopted at the annual general meeting, the dividend
will be payable on 12 June 2006 to the holders registered on 12 May 2006.
c. Copies of the Directors’ service contracts will be available for inspection at the registered office from the date of the above notice
until the date of the meeting and at the place of the meeting from 15 minutes prior to and until the close of the meeting.
36 eg solutions plc  Annual report and accounts 2006
Notice of meeting (continued)
_0_EG_arB06.qxd  18/04/2006  10:56  Page 36 eg operational intelligence
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2006 2007
Financial year end 31 January 31 January
Preliminary announcement of results 21 March March
Publication of Annual Report April April
Record date for final dividend 12 May
Annual general meeting 6 June June
Final dividend payment 12 June
Half year end 31 July 31 July
Interim results September September
Corporate information 
Registered address
The Roller Mill
Teddesley Road
Penkridge
Staffordshire ST19 5BD
Tel: +44 (0) 1785 715772
Fax: +44 (0) 1785 712541
Email: ask@eguk.co.uk
Company number
2211062
Website
www.eguk.co.uk
Nominated adviser and broker
Brewin Dolphin Securities Limited
National House
36 St Ann Street
Manchester M60 2EP
Auditors
Baker Tilly
Festival Way
Stoke-on-Trent
Staffordshire ST1 5BB
Registrars
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Lawyers
Brown Rudnick Berlack Israels LLP
8 Clifford Street
London W1S 2LQ
Rodney Baker-Bates 
Non-executive Chairman 
Paul Thomas 
Non-executive Director 
Elizabeth Gooch 
Chief Executive Officer 
Jon Pyke 
Non-executive Director 
David Blain 
Finance Director 
Financial calendar
“
There is a strong ethos of directness, hard work
and partnership which receives strong approval
from clients.
”
_cover.qxd  18/04/2006  10:57  Page 2 ANNUAL REPORT
AND ACCOUNTS 2006
eg solutions plc
eg solutions plc, The Roller Mill, Teddesley Road, Penkridge, Staffordshire ST19 5BD
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 2006
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