16230 08/05/2009 Proof 7
intelligent operations management
intelligent operations management
eg solutions plc
Annual Report and Accounts 
for the year ended 31 January 2009
Stock exchange code: EGS
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eg at a Glance 4
Our Customers 6
Chairman’s Statement 8
Chief Executive’s Statement 10
Financial Review 12
Board of Directors 14
Corporate Social Responsibility 16
Directors’ Report 18
Directors’ Responsibilities 22
Independent Auditors’ Report 23
Group Income Statement 24
Group Statement of Recognised Income and Expense 25
Group Balance Sheet 26
Company Balance Sheet 27
Group Cash Flow Statement 28
Company Cash Flow Statement 29
Notes to the Group Financial Statements 30
Shareholder Notes 52
Notice of Meeting 54
Form of Proxy 55
Contents
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users of eg software worldwide 
intelligent operations management
intelligent operations management
Highlights
Where we operate
 eg ofﬁ ces eg  eg  eg  eg  eg  eg  eg  eg  eg  eg  eg  eg  eg  eg  eg 
 eg operational 
 intelligence® users
On average, each customer 
can save anywhere between 
20% and 50%.
what we do
eg solutions plc is a leading operations management software company that 
specialises in operations management solutions — delivering guaranteed 
improvements in operational performance and bottom line results.
The Company currently has more than 41,000 licensed users of the eg operational 
intelligence
®
 software suite across blue-chip companies throughout the world. 
UK
Nordics
The Netherlands
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Our Business Our Governance Our Accounts
16230 12/05/2009 Proof 10
Key Business Highlights
> After achieving good progress in the ﬁ rst half of the year, the Company was 
affected increasingly by the rapid onset of the crisis in the ﬁ nancial services sector, 
which is its main marketplace, resulting in a loss before tax of £753,000.
> The combination of software licences, software services and maintenance 
increased their contribution to 66% of revenue for the full year with the balance 
coming from implementation services. This compares with 56% for 2008 and 
36% in 2007.
> Net cash at the year-end was £262,000 (2008: £878,000) and has increased 
since then.
> A tight control on overheads was maintained during the year with administrative 
costs being reduced by 26% to £2.6 million.
> A move to new open plan ofﬁ ces in July 2008 has improved staff morale and team 
working as well as providing excellent new customer training facilities.
> New contract wins announced during the year demonstrate continued interest in 
our products in core markets and internationally. 
> The Company’s sales efforts have been increased by the appointment of Robert 
Maxﬁ eld as Head of Sales in November 2008. The Company has reported that its 
pipeline of potential sales is stronger now than at any time in the past 24 months 
and that its focus is on converting this potential into signed contracts.  
> Due to the fastest take-up of a new product release in the Company’s history, 
there are now 10 customers using the latest releases of eg work manager
®
 and 
eg operational intelligence
®
.
> A signiﬁ cant contract has been secured in the new ﬁ nancial year with a value of 
£1.6 million over four years, with just over half of the revenue expected to be 
recognised in the current year.
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21
years of 
operational management experience
eg at a Glance
operational management
Practice you can measure
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.
operational results
Results you can measure
Tangible business beneﬁ ts 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 intelligence
Performance you can measure
 eg operational intelligence
®
 — the deﬁ nitive 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, efﬁ ciency and 
reduced costs in weeks — guaranteed.
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eg is the only operations management software 
company that guarantees return on investment 
and is paid based on the results delivered — 
implementations will pay for themselves, typically 
within 6 months.
With over 21 years of operational management 
experience we have a wide range of reference 
sites to assure you of our ability to deliver real 
performance improvement into your organisation.
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 beneﬁ t of at least 20% 
— the actual cost beneﬁ t was 29%.”
“We have used the eg 
operational intelligence
®
 
software suite for 18 years 
and it has provided us with 
a year on year return on 
investment.”
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return on investment
guaranteed
Our Customers
> Resolution is a prominent 
provider of health insurance 
services in South Africa
> Resolution selected eg to help 
them to increase capacity 
without increasing costs across 
their operational areas. This 
project is currently in progress
> The project will implement eg’s 
software and management 
methodology across all ‘front 
line’ operational areas including 
new business processing, claims, 
contribution management, 
managed care, loyalty 
programme and the call centre
> This full roll-out is due to 
complete in July 2009 and is on 
track to deliver agreed beneﬁ ts
> Implementation in Life & Pensions 
With Proﬁ ts to over 500 users
> Two separate locations with 
a daytime and an evening 
workforce responsible for a 
mixed workload of back ofﬁ ce 
processing and Customer facing 
telephony
> eg identiﬁ ed guaranteed cost 
beneﬁ ts of 20% but actually 
delivered 34%
> eg’s software has provided 
a consistent system of 
performance measures that are 
now being successfully utilised in 
the day-to-day management of 
people and processes
> “The implementation of eg’s 
software and methodology 
has enabled Legal & General 
to improve efﬁ ciency and 
performance, which we believe 
will have a really positive impact 
on Legal & General’s future 
success. With eg’s help we have 
achieved the project’s original 
objectives and more.” Paul Lewis, 
Customer Services Director, Legal 
& General
> This project took place in the 
Shared Financial Services Centre 
in Burslem
> The area is responsible for a 
wide range of processes that 
support the retail businesses, 
including invoice matching, 
accounts payable administration 
and bank reconciliation
> eg’s solutions have provided 
visibility of the end-to-end process, 
productivity has improved and 
backlogs have been cleared
> Through eg’s operations 
management principles, 
Team Leader roles have been 
transformed, as has the morale 
and performance of staff 
> A guaranteed 20% productivity 
improvement was delivered
> Further roll-outs planned for 
2009
> “In the past we knew what 
needed to be done but we had 
no milestones to measure what 
we had achieved. eg has given 
us the power to look at our 
achievements and identify ways 
in which we can be even better.” 
Tony Smith, Head of Shared 
Financial Service Centres
> Project to implement software 
and services into Nationwide’s 
Cheshire and Derbyshire 
Regional Brand businesses. This 
project is currently in progress
> eg’s operational management 
software and methodology will 
help the Cheshire and Derbyshire 
to increase efﬁ ciency and create 
capacity to handle existing 
and planned future volumes of 
business
> eg will help Nationwide Regional 
Brands improve productivity and 
establish ‘best practice’ as the 
basis for sustained performance, 
training and individual 
development
> eg currently also supplies 
software and services to 
Nationwide’s Specialist Lending 
Brands based in Bournemouth
Nationwide The Co-operative Group 
Shared Financial Services 
Centre
Legal & General 
With Proﬁ ts
Resolution
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eg’s software provides 
historic, real-time and 
predictive Management 
Information . . . intelligent 
operations management.
The eg operational intelligence
®
 software suite incorporates eg work manager
®
 (used 
day-to-day by Managers and Team Leaders) and eg operational intelligence
®
 (which provides 
multi-level Operations MI reporting for Senior Managers, Directors and Department Heads).
eg operational intelligence
®
 has been developed and reﬁ ned over the last 18 years and forms 
a comprehensive work, resource and performance reporting tool. It enables clients to gather 
information about the key factors affecting performance, thereby identifying appropriate decisions 
and actions to improve efﬁ ciency and reduce costs in weeks — guaranteed.
eg operational intelligence
®
 provides a consolidated view and analysis of the Operations MI 
for the whole business or for speciﬁ c units within the organisation, covering disparate teams, 
departments and locations, wherever they are based throughout the world. 
The various modules within eg operational intelligence
®
 provide the ability to conduct ongoing 
impact assessments to facilitate accurate resource planning and management across multiple 
sites.
“eg work manager
®
 is an excellent tool to show 
individual and team efﬁ ciency. It also allows for 
complexities that occur during the working day and 
revised planning. I love it!”
Valarie Pillai, Liberty Life
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“Robert Maxfield joined the 
Company as Head of Sales with 
a brief to help convert a promising 
pipeline of potential business into 
firm orders.”
Chairman’s Statement
Introduction
After a good first half year in which the Company made 
progress in meeting its objectives, the second half year 
deteriorated progressively as the crisis deepened within the 
financial services sector — our principal market. Although 
our products are firmly within the ‘spend to save’ category, 
and there is increasing evidence of demand, our clients have 
subjected expenditure on new and existing IT projects to more 
intense scrutiny since October 2008. This has led to delays 
in placing orders and, in certain instances, cancellation of 
projects which were at a late stage of negotiation. As a result, 
performance in the last quarter of the year was significantly 
below forecast, affecting the results for the year as a whole 
which were below expectations.
Results and finance
Following the appointment of Ernst & Young LLP as the 
Company’s new Auditors in September 2008, the opportunity 
was taken after the year end to review the detailed treatment 
of R&D capitalisation and amortisation policies under IFRS. 
This led to a restatement of the results for the year to 
31 January 2008, reducing the amount charged to the Income 
Statement for development expenditure and amortisation by 
an aggregate £231,000, thereby reducing the stated loss for 
that year.
After recording an increase in revenue during the first half 
year, a very quiet last quarter of the year resulted in total 
revenue for the year to 31 January 2009 of £3.7m (2008: 
£4.1m) and an operating loss of £792,000 (2008: previously 
stated: £897,000; restated: £683,000). The loss before tax 
was £753,000 (2008: previously stated: £815,000; restated: 
£601,000). The loss per share was 5.5p (2008: previously 
stated: 5.0p; restated: 3.8p).
Net cash at the year end was £262,000 (2008: £878,000) and 
cash balances are currently at a higher level.
Dividend
The Board will not be declaring a dividend for the year ended 
31 January 2009. 
Board and senior management
During the second half of the year, Robert Maxfield joined 
the Company as Head of Sales with a brief to help convert a 
promising pipeline of potential business into firm orders. 
I am pleased to report that Robert is making good progress.
More recently we announced that Violetta Parylo had resigned 
as Finance Director and has now left the Company to take up 
a position in a larger organisation. Given the current size of 
eg solutions, it has become apparent to the Board that the 
role of Finance Director does not warrant a full-time executive 
position. Accordingly, the Company has decided that the 
position of Finance Director will become a part-time position 
supported by the current Financial Controller and accounts 
staff.
Andy McRae, currently a Non-executive Director of the 
Company and a qualified UK Chartered Accountant, has 
assumed the position of part-time Finance Director until a 
suitable replacement with public company experience has 
been appointed.
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Rodney Baker-Bates
Non-executive Chairman
Current trading and outlook
In the period end trading update issued in January 2009, we 
noted that our pipeline of potential sales was stronger than 
at any time in the past 24 months. That continues to be the 
case and our focus is on converting this potential into signed 
contracts. While trading conditions are difficult and customer 
decision times are longer, steady progress is being made in 
closing new sales contracts.
Meanwhile, the Company’s net cash deposits have increased 
since the year-end; and together with a bank facility for the 
forthcoming year, this provides adequate financing for the 
foreseeable future.
Rodney Baker-Bates
Non-executive Chairman
3 April 2009
“We noted that our pipeline 
of potential sales was 
stronger than at any time 
in the past 24 months. 
That continues to be the 
case and our focus is on 
converting this potential 
into signed contracts.”
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“there is now increasing interest in our 
applications and services as they help 
our customers to reduce costs and 
deliver guaranteed return on investment 
in six months.”
Chief Executive’s Statement
Introduction
Some two years ago we promised shareholders that a 
turnaround would be achieved in three half-year trading 
periods together with the creation of a platform for profitable 
growth. The Company was on track to deliver on this promise 
until the start of the last quarter of our financial year. 
Inevitably, we were affected by the rapid onset of the crisis in 
the financial services sector which is our main marketplace.
With an immediate focus by our customers on short-term 
reactions to the developing problems, decision times on new 
projects lengthened significantly in the closing months of the year 
under review. Some client companies sought to reduce capital 
expenditure on IT; others deferred projects on account of an 
unprecedented level of M&A activity in the sector. This resulted in 
some potential sales being deferred and others being cancelled. 
Also, some customer support contracts were lost when these 
customers ceased trading or were merged into other entities.
Within the past few months, the stronger financial services 
businesses have begun to recognise the need for investment 
in IT projects which will reduce their costs, improve service 
levels and achieve payback in short time periods.
Business review
Strict control of costs
A tight control of costs has been maintained during the 
year. The increase in the total cost of sales to £1.8m (2008: 
£1.4m; restated 2008: £1.2m) reflects an increased use 
of IT sub-contractors during the year which, together with 
higher amortisation of development expenditure, resulted in 
a reduction in gross margins to 51% (2008: 65%; restated 
2008: 70%). Administrative costs were reduced to £2.6m 
(2008: restated £3.6m) and are budgeted to reduce further 
this year.
The Company moved into new offices in July 2008, incurring 
a one-off cost of £55,000. These new open plan offices have 
improved staff morale and team working as well as providing 
excellent new customer training facilities. 
Total one-off costs in the year were £112,000 (2008: 
£392,000) including the office move and a prior-year provision 
for ‘ex-pat’ tax equalisation.
A review of the treatment of capitalisation and amortisation of 
R&D expenditure under accounting standard IAS 38 resulted in 
an adjustment to the accounts for the year ended 31 January 
2008. Additional R&D capitalisation of £103,000 from direct 
costs and a £128,000 reduction in amortisation is reflected in 
a £231,000 increase in retained earnings on the balance sheet. 
These changes are non-cash items.
Market and business development
The Company’s sales efforts have been increased by the 
appointment in November 2008 of Robert Maxfield as Head 
of Sales. With greater focus on Business Development, 
together with an increased number of enquiries, the pipeline 
of potential sales is now stronger than at any time in the 
past 24 months as companies in the financial services sector 
seek to reduce their cost base. It is evident that the stronger 
companies in UK financial services have realised that improved 
operational management capability can help them to reduce 
costs, whilst also improving customer service and regulatory 
compliance.
The combination of software licences, software services and 
maintenance increased its contribution to 66% of revenue for 
the full year with the balance coming from implementation 
services. This compares with 56% for 2008 and only 36% 
in 2007.
Despite considerable restructuring amongst the eg customer 
base and some pressure to reduce the costs of contracted 
support, maintenance revenues have held up well and are 
expected to do so in the current year. 
New contract wins announced during the year under review 
included Nationwide Building Society’s Specialist Lending and 
Regional Brands, a software services project for The Co-
operative Financial Services, as well as implementations in 
The Co-operative Group and Resolution Health in South Africa. 
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Elizabeth Gooch
Chief Executive Ofﬁ cer
These contract wins demonstrate continued interest in our 
products in core markets and internationally. 
During the year, work was undertaken on 25 software 
services projects for 11 clients including Aviva, The Co-
operative Financial Services, Capita, Liberty Life, Nationwide 
and Wesleyan Assurance. These projects largely involved 
integrating eg work manager® and eg operational 
intelligence® with enterprise workflow and content 
management systems, process modelling and simulation tools 
and corporate performance measurement tools.
Currently 10 customers are now using the latest releases of eg 
work manager® and eg operational intelligence® — the 
fastest take-up of a new product release in the Company’s history.
Product development & support
Investment in capitalised software development in the year 
was £528,000 (2008: £0.71m; restated 2008: £0.82m) and 
included a major project to improve the efficiency and quality 
of software developments to enable eg to undertake more 
development projects at lower cost.
Development to existing software products included:
> enhancement to eg activity manager™ using Microsoft 
Silverlight technology;
> increased archiving capability;
> implementation of fully automated work allocation to 
support large-scale work throughput volumes; and
> improved reporting for clients to provide B2B service level 
reports direct from eg work manager®.
Development of new software products included:
> development of eg work manager® (v5.1) and eg 
operational intelligence® (v2.1) for release in 2009, 
including conversion of report production to Microsoft SQL 
Server Reporting Services; and
> eg operational data views™ — a new product enabling 
clients to use eg work manager® data in other 
systems, develop customised reports and embed eg work 
manager® data in enterprise IT platforms.
During the year and since the year-end, good progress has 
been made in certification and accreditation including:
> Microsoft certification for eg work manager® v5.0 and 
eg operational intelligence® v2.0; 
> BBBEE (Broad Based Black Economic Empowerment) 
level 2 accreditation in South Africa (score out of 10 
with 1 being the highest. 2 is a high score for small/new 
enterprises, particularly a foreign entity); and
> Banking Sector Training and Education Authority 
(BANKSETA) accreditation in South Africa for eg 
Operational Management training.
Priorities for the future
Our plans to restore the Company to profitable growth were 
on track in the first half of the year but were interrupted by 
the challenging conditions in the financial services sector in 
the last six months.
However, there is now increasing interest in our applications 
and services as they help our customers to reduce costs and 
deliver guaranteed return on investment in six months.
Our strategy remains to continue our plans to achieve 
profitable growth for our shareholders by securing further 
new business in UK core markets and specific international 
markets, strict control of overheads and the pursuit of further 
opportunities to reduce costs.
Elizabeth Gooch
Chief Executive Officer
3 April 2009
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Overview
In the year ended 31 January 2009, turnover was £3.67m, 
a reduction of £0.45m (2008: £4.12m). Operating losses 
decreased by £0.11m in 2009 to produce a loss of £0.79m 
(2008: loss £0.90m; 2008: restated £0.68m).
Revenue Analysis
The Group produced a pleasing first half result with revenues 
of £2.27m, a 10% increase on 2008 £2.07m. Revenue earned 
in the second half of the year was £1.40m compared with 
£2.06m 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.
Research and Development — Prior Year Adjustment
During 2008, following a review of its research and 
development policy, eg solutions plc identified that some 
software subcontractor costs relating to the year ended 
31 January 2007 had not been capitalised. The total cost of 
this under capitalisation amounted to £103,000.
During this review eg also identified that the amortisation of 
its products had commenced too early. The three products 
in question were not available for general release until late 
January 2008. The total of this error amounted to £128,000.
These adjustments resulted in a deferred tax liability of 
£65,000, of which £60,000 related to the prior year and 
£5,000 related to earlier periods.
The above amounts have been adjusted through reserves as a 
prior year adjustment.
2008 opening retained earnings were £0.3m and closing 
retained earnings were (£0.2m).
The impact of the prior year adjustment on restated basic 
EPS is (3.8)p (2008: (5.0)p) and restated diluted EPS is (3.8)p 
(2008: (5.0)p).
The financial statements and all the related notes have been 
restated to reflect the changes that have been made.
Loss Before Taxation
The loss before taxation was £0.75m (2008: £0.81m; restated 
2008: £0.58m). 
Taxation
The Group has benefited from the favourable tax relief given 
on development expenditure. The effective rate of taxation 
credit is 4% (2008: effective rate of tax credit 16%).
Earnings Per Share
Loss per share on a basic and fully diluted basis was (5.5)p 
and (5.5)p respectively. In the prior year the basic earnings 
per share was (5.0)p (2008: restated (3.8)p) (and on a fully 
diluted basis (5.0)p (restated (3.8p)).
Dividend
The trading results are set out on page 24. The Directors 
do not recommend the payment of a final dividend on the 
ordinary shares (2008: Nil).
Financial Review
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Research and Development & Capital Expenditure
The Group spent £1.12m on direct staff and contractor 
costs for research and development, of which £0.42m 
was capitalised. An additional £0.11m, in relation to direct 
costs, was also capitalised. In 2008 the Group expended 
£1.24m on direct staff and contractor costs developing its 
software product, of which £0.59m (2008: restated £0.69m) 
was capitalised. An additional £0.03m, in relation to direct 
costs, was also capitalised. The expenditure relates to the 
development of new and enhanced software offerings. 
Cash Flow
The Group is debt free and at 31 January had interest-earning 
cash balances of £0.26m (2008: £0.88m). Cash outflow in 
the year from operating activities was £0.62m (2008: outflow 
£1.55m). 
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Board of Directors
Rodney Baker-Bates
Non-executive Chairman
Rodney, 63, is a Chartered Accountant, a Fellow of the Institute 
of Bankers, and 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 and holds a number of Non-executive 
roles including Stobart Group, Assura Group and FirstAssist 
Insurance Services.
Elizabeth Gooch
Chief Executive Ofﬁ cer
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 ofﬁ ces of ﬁ nancial 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 ﬁ nancial services companies 
such as HBOS, Aviva 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.
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Our Business Our Governance Our Accounts
Advisers
Secretary
TLT Secretaries Limited
One Redcliffe Street
Bristol
BS1 6TP
Registered Office
Dunston Business Village 
Stafford Road
Dunston
Stafford
Staffordshire
ST18 9AB
Auditors
Ernst & Young LLP
Registered Auditor
No. 1 Colmore Square
Birmingham 
B4 6HQ
Solicitors
TLT Solicitors
Sea Containers House
20 Upper Ground
Blackfriars Bridge
London 
SE1 9LH 
Nominated Adviser
Brewin Dolphin Limited
National House
36 St Ann Street
Manchester
M2 7LE
Andrew McRae
Non-executive Director
Andy McRae has more than 20 years of international 
business experience, much spent within the support services 
sector. Andy is a qualified UK Chartered Accountant and, as 
well as being a Non-executive Director of the Company, is 
acting Finance Director whilst the Company finds a suitable 
replacement with public company experience.
Andy is presently Chief Operating Officer for Healthcare 
Locums Plc, the UK’s largest Health and Social Care recruitment 
company. Prior to assuming senior general management roles, 
Andy held a number of senior financial positions in the UK 
public company arena.
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Corporate Social Responsibility
eg is committed to managing 
its business in a socially 
responsible manner. 
eg’s Corporate Social 
Responsibility (CSR) policy has 
been produced in collaboration 
with employees and reflects 
the areas the Company feels 
are most closely aligned to its 
business operations.
Employees
eg’s intention is to listen to and involve staff — employee 
feedback is an important way of ensuring the continuous 
improvement of the business and can help improve staff 
satisfaction. Employees are fully supported by the Company 
should they choose to undertake further study and training.
Environment
It is Company policy that all waste materials are recycled. 
Wherever possible eg uses FSC-certified paper products 
and sustainable suppliers. We introduced ethical external 
Christmas cards in 2008 and a digital card for employees to 
reduce waste.
Company charity
Due to its involvement in South Africa since launching a 
subsidiary in Johannesburg in 2007, eg has chosen the 
Doornkop Needy Children’s Centre as its Company charity. 
The centre provides safety and shelter for orphaned or 
fostered children aged 1 to 5 years old, some of whom are 
HIV positive. eg supports fundraising activities with staff and 
clients, as well as making its own financial contributions to the 
charity. The Company also organised a Christmas party for the 
children in 2008.
The Doornkop Needy Children’s 
Centre looks after 160 poor 
children. The money eg has 
donated and helped to raise over 
the last 12 months helps provide 
food, toys, clothes, learning 
materials, equipment and outings 
for the children.
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Our Business Our Governance Our Accounts
South Africa
The South African government has introduced a 
comprehensive system to help integrate black people into 
society, post-apartheid, and therefore encourage and assist 
the transition of economic empowerment. Companies 
operating in South Africa have to achieve Broad Based Black 
Economic Empowerment (BBBEE) accredited status in support 
of these objectives. Businesses are classified by their size and 
measured in terms of how successfully they comply with a 
range of seven measures.
We are currently accredited with level 2 status (out of 10, 
1 is the highest score). This is considered to be a great 
achievement considering the size of our organisation and the 
short length of time we have been operating in South Africa.
eg operations 
management solutions (pty) 
limited
PO Box 785553
2nd Floor, West Tower
Maude Street
Nelson Mandela Square
Sandton 2146
Johannesburg
South Africa
Tel: +27 (0) 11 881 5748
Fax: +27 (0) 11 881 5611
ask@egsa.co.za 
www.egsa.co.za
“In the recent eg Staff Satisfaction 
Survey, 98% of staff strongly agreed or 
agreed that eg is a good place to work.”
“eg have supported me in 
undertaking various software 
training courses over the 
years — the fact that we 
are a Microsoft Partner is an 
added benefit as it means I 
can tap into resources which 
otherwise wouldn’t be as 
easily accessible. In my area 
of expertise it’s important 
that my skills are continually 
enhanced in line with ever-
evolving technology and eg 
enables me to do this.” 
Chris Oates, Senior Software Developer
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Directors’ Report
The Directors submit their report and the financial statements 
of eg solutions plc for the year ended 31 January 2009.
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 £3.7m which was £0.4m lower than 
in 2008. The retained loss for the year is £0.7m (2008: loss 
£0.7m; restated 2008: £0.5m).
The information that fulfils the requirements of the Business 
Review including Key Performance Indicators below can be 
found in the Chairman’s Statement and Chief Executive’s 
Statement on pages 8 to 11 which are 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 
has/makes 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 24. The 
Directors do not recommend the payment of a final dividend 
on the ordinary shares (2008: Nil).
Prior Year Adjustment
During 2008, following a review of its Research and 
Development policy eg solutions plc identified that some 
software subcontractor costs relating to the year ended 
31 January 2007 had not been capitalised. The total cost of 
this under-capitalisation amounted to £103,000.
During this review eg also identified the amortisation of its 
products had commenced too early. The three products in 
question were not available for general release until late 
January 2008. The total of this error amounted to £128,000.
The above amounts have been adjusted through reserves as 
a prior year adjustment.
Future Developments
The Group has 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. 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. 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.
  
    Restated
 Note 2009 2008 2008
Revenue  A £3,666,000 £4,123,000 £4,123,000
% Change B (11.1%) (24.7%) (24.7%)
Gross Margin % C 50.6% 65.3% 70.5%
Loss from operations % D (21.6%) (21.8%) (16.6%)
Net loss after tax % E (19.4%) (15.9%) (12.2%)
Retained Cash Balances A £262,000 £878,000 £878,000
Cash Outflow from Operating Activities  A £616,000 £1,553,000 £1,553,000
Research and Development Expenditure on staffing costs 
(including capitalised staff development costs) A £1,172,000 £1,235,000 £1,337,000
Debtor Days F 31 27 27
Creditor Days F 35 47 47
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Our Business Our Governance Our Accounts
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 Growth/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 Loss from operations is the loss from operations as a percentage of revenue.
E Loss after tax is the loss after tax as a percentage of revenue.
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 average value of sales or purchases for the previous 
twelve months respectively, inclusive of VAT, and multiplying by the number of days in the year. 
Political and Charitable Contributions
During the year the Group made charitable donations of £840 
(2008: £7,050) to a local charity in South Africa. No political 
donations were made.
Research and Development
The Group invests in new product development and the 
continual modification and improvement of its existing 
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 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.
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. 
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 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. 
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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. Exposures to financial risks are monitored by 
management and they are required to produce a quarterly risk 
report comprising all risks and an indication of the business 
impact of those risks.
The risk reports are provided to the Board of Directors in 
advance of the 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 £0.26m in net cash balances.  
The objective is to ensure that operating profits are turned 
into cash balances during the year. The Group has an overdraft 
facility to provide additional liquidity if required.
Cash Flow Risk
The Group’s objective is to remain broadly cash neutral over 
the coming financial year.
Foreign Currency Risk
The Group is exposed to minimal foreign currency risk through 
transactions with overseas customers.
The Group is also exposed to exchange fluctuations which 
affect the value of its overseas subsidiary.
Directors
The following Directors have held office since 1 February 
2008:
RP Baker-Bates 
EA Gooch
A McRae
V Parylo (appointed 19 May 2008, resigned 20 March 2009)
P Bird (resigned 19 May 2008)
Directors’ Interests in Shares 
Directors’ interests in the shares of the Group as at 31 January 2009, including family interests, were as follows:
 Beneficial
 Ordinary shares  Ordinary shares 
 of 1p each  of 1p each 
 31 January 2009 31 January 2008
Beneficial
RP Baker-Bates 775,000 475,000
EA Gooch 8,128,720 7,749,308
A McRae 20,000 20,000
V Parylo — —
EA Gooch has non-beneficial interests in 1,176,470 shares which are held through the eg solutions plc Employee Benefit Trust. 
Directors’ Report continued
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Our Business Our Governance Our Accounts
  Percentage of 
Investor Shares Held Issued Share Capital
ISIS Equity Partners LLP 2,034,741 14.2%
Unicorn Asset Management 588,635 4.1%
Policy on Payment of Creditors 
It is the Group’s policy that payments to suppliers are made in 
accordance with those terms and conditions agreed between 
the Group and its suppliers, provided that all trading terms 
and conditions have been complied with. 
Trade creditor days based on creditors at 31 January 2009 
were 35 days (2008: 47 days).
Directors’ statement as to disclosure of information 
to Auditors
The Directors who were members of the Board at the time 
of approving the Directors’ report are listed on pages 14 to 
15. Having made enquiries of fellow Directors and of the 
Company’s Auditors, each of these Directors confirms that:
> to the best of each Director’s knowledge and belief, there 
is no information relevant to the preparation of their report 
of which the Company’s Auditors are unaware; and
> each Director has taken all the steps a Director might 
reasonable be expected to have taken to be aware of 
relevant audit information and to establish that the 
Company’s Auditors are aware of that information.
Auditors
Baker Tilly UK Audit LLP resigned as Auditors during the year 
and Ernst & Young LLP were appointed by the Directors to fill 
the casual vacancy.
Going Concern
The Group manages its day-to-day working capital 
requirements through a combination of cash inflows from 
sales, tight management of expenses and when required 
an overdraft facility. The overdraft facility has recently been 
extended to 31 January 2010.
The Group’s forecasts and projections, which take account of 
both positive and negative variations in trading performance, 
show that the Group has sufficient headroom to operate within 
the level of its current facility. Should the facility be required 
beyond 31 January 2010 the Directors currently have no 
reason to believe that it will not be extended.
The current economic conditions create uncertainty over 
the level of demand for the Group’s products within its core 
market of financial services. Nevertheless, after considering 
this uncertainty, the Directors have a reasonable expectation, 
based on both recent past performance and the current 
pipeline of possible future business that the Group has 
adequate resources to continue in operational existence for 
the foreseeable future. Accordingly, they continue to adopt 
the going concern basis in preparing the annual report 
and accounts.
Annual General Meeting
A resolution to reappoint Ernst & Young LLP as Auditors will 
be put to the members at the Annual General Meeting of the 
Company which will be held at 10.30 am on 16 June 2009 at 
the offices of TLT Solicitors, Sea Containers House, 20 Upper 
Ground, Blackfriars Bridge, London, SE1 9LH.
Approval
This report was approved by the Board of Directors on 
3 April 2009 and signed on its behalf by:
EA Gooch
Chief Executive Officer
3 April 2009
Substantial Shareholdings
On 31 January 2009, other than the Directors whose interests are shown above, the following held more than 3% of the issued 
share capital:
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Directors’ Responsibilities in the Preparation of the Financial Statements
The Directors are responsible for preparing the Annual Report 
and the Group financial statements in accordance with 
applicable United Kingdom law.
The Directors are required to prepare Group financial 
statements for each financial year which present fairly the 
financial position of the Group and the financial performance 
and cash flows of the Group for that period. In preparing 
those Group financial statements the Directors are required to:
> select suitable accounting policies in accordance with 
IAS 8: Accounting Policies, Changes in Accounting 
Estimates and Errors and then apply them consistently;
> present information, including accounting policies, in a 
manner that provides relevant, reliable, comparable and 
understandable information;
> provide additional disclosures when compliance with the 
specific requirements in IFRSs is insufficient to enable 
users to understand the impact of particular transactions, 
other events and conditions on the Group’s financial 
position and financial performance; and
> state that the Group has complied with IFRSs, subject to 
any material departures disclosed and explained in the 
financial statements.
The Directors are responsible for keeping proper accounting 
records which disclose with reasonable accuracy at any 
time the financial position of the Group and enable them 
to ensure that the Group financial statements comply with 
the Companies Act 1985. 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.
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Our Business Our Governance Our Accounts
Independent Auditors’ Report to the Members of eg solutions plc
We have audited the Group and Parent Company financial 
statements (the “financial statements”) of eg solutions plc 
for the year ended 31 January 2009 which comprise the 
Group Income Statement, the Group and Parent Company 
Balance Sheets, the Group and Parent Company Cash Flow 
Statements, the Group Statement of Recognised Income 
and Expenses and the related notes 1 to 34. These financial 
statements have been prepared under the accounting policies 
set out therein. 
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 Auditor’s 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 
United Kingdom law and International Financial Reporting 
Standards (IFRSs) as adopted by the European Union 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 whether the financial 
statements have been properly prepared in accordance with 
the Companies Act 1985. We also report to you whether in 
our opinion the information given in the Directors’ report is 
consistent with the financial statements. The information 
given in the Directors’ report includes that specific information 
presented in the Chairman’s Statement that is cross-referred 
from the Business Review section of the Directors’ report. 
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 are not disclosed.
We read other information contained in the Annual Report 
and consider whether it is consistent with the audited 
financial statements. The other information comprises only 
the Directors’ report, the Chairman’s Statement, Financial 
Review and Chief Executive’s Statement. 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 Group’s and 
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 Group financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union, 
of the state of the Group’s affairs as at 31 Janaury 2009 
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 2009;
> 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.
Ernst & Young LLP
Registered Auditor 
No. 1 Colmore Square
Birmingham
B4 6HQ
3 April 2009
Notes:
1. The maintenance and integrity of the eg solutions plc 
website is the responsibility of the Directors; 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 financial statements since they were initially presented 
on the website.
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Group Income Statement
for the year ended 31 January 2009
   Restated *
  Year ended Year ended
  31 January 31 January
  2009 2008
 Notes £’000 £’000
Revenue 3 3,666 4,123
   
Cost of sales  (1,812) (1,217)
Gross profit  1,854 2,906
Administrative expenses  (2,646) (3,589)
   
Loss from operations 5 (792) (683)
Finance income 8 39 82
   
Loss before tax  (753) (601)
Tax credit 9 33 99
   
Loss after tax  (720) (502)
   
Loss per share
From continuing operations
Basic 11 (5.5p) (3.8p)
Diluted 11 (5.5p) (3.8p)
* See note 2.
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Our Business Our Governance Our Accounts
Group Statement of Recognised Income and Expense
for the year ended 31 January 2009
   Restated*
  2009 2008
 Note £’000 £’000
Currency translation differences  (28) 10
   
Income and expenses for the year directly recognised in equity  (28) 10
Loss for the year 26 (720) (502)
Prior year adjustment  — 12
   
Total recognised expense for the year  (748) (480)
   
Attributable to:
Equity holders of the parent  (748) (480)
   
  (748) (480)
   
* See note 2.
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Group Balance Sheet
as at 31 January 2009
   Restated *
  At  At
  31 January 31 January
  2009 2008
 Notes £’000 £’000
Assets
Non-current assets
Intangible asset 12 1,434 1,142
Property, plant and equipment 13 74 117
   
  1,508 1,259
   
Current assets
Trade and other receivables 16 539 825
Inventories 18 17 24
Current tax receivable  258 157
Cash and short-term deposits 19 262 878
   
  1,076 1,884
   
Total assets  2,584 3,143
   
Liabilities
Current liabilities
Trade and other payables 21 1,063 969
   
  1,063 969
   
Non-current liabilities
Deferred tax liabilities 24 215 147
   
  215 147
   
Total liabilities  1,278 1,116
   
Net assets  1,306 2,027
   
Equity 
Share capital 25 143 143
Share premium 26 2,910 2,910
Share-based payment reserve 26 218 191
Own shares held  (1,000) (1,000)
Retained earnings 26 (965) (217)
   
Total equity  1,306 2,027
   
The financial statements on pages 24 to 51 were approved by the Board of Directors and authorised for issue on 3 April 2009 and are 
signed on its behalf by: 
Elizabeth Gooch
Chief Executive Officer
* See note 2.
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Our Business Our Governance Our Accounts
Company Balance Sheet
as at 31 January 2009
   Restated*
  At  At
  31 January  31 January
  2009 2008
 Notes £’000 £’000
Assets
Non-current assets
Intangible asset 12 1,434 1,142
Property, plant and equipment 14 63 87
Investments in subsidiaries 15 — —
   
  1,497 1,229
   
Current assets
Trade and other receivables 17 1,051 1,286
Inventories 18 17 24
Current tax receivable  258 157
Cash and cash equivalents 20 182 725
   
  1,508 2,192
   
Total assets  3,005 3,421
   
Liabilities
Current liabilities
Trade and other payables 22 996 1,049
   
  996 1,049
   
Non-current liabilities
Deferred tax liabilities 24 215 205
   
  215 205
   
Total liabilities  1,211 1,254
   
Net assets  1,794 2,167
   
Capital and reserves 
Share capital 25 143 143
Share premium 27 2,910 2,910
Share-based payment reserve 27 218 191
Own shares held 27 (1,000) (1,000)
Retained earnings 27 (477) (77)
   
Total equity  1,794 2,167
   
The financial statements on pages 24 to 51 were approved by the Board of Directors and authorised for issue on 3 April 2009 and are 
signed on its behalf by: 
Elizabeth Gooch
Chief Executive Officer
* See note 2.
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Group Cash Flow Statement
for the year ended 31 January 2009
   Restated *
  Year ended Year ended
  31 January 31 January
  2009 2008
 Notes £’000 £’000
Operating activities
Cash consumed in operations 29 (77) (837)
Income taxes received  — 91
   
Net cash used in operating activities  (77) (746)
   
Investing activities
Purchases of intangible assets  (528) (819)
Purchases of property, plant and equipment   (54) (70)
Proceeds from sale of property, plant and equipment  4 —
Interest received  39 82
   
Net cash used in investing activities  (539) (807)
   
Net decrease in cash and cash equivalents  (616) (1,553)
   
Cash and cash equivalents at beginning of year  878 2,431
   
Cash and cash equivalents at end of year
Bank balances and cash  262 878
   
* See note 2.
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Our Business Our Governance Our Accounts
Company Cash Flow Statement
for the year ended 31 January 2009
   Restated*
  Year ended Year ended
  31 January 31 January
  2009 2008
 Notes £’000 £’000
Operating activities
Cash consumed in operations 30 (7) (1,036)
Income taxes received  — 91
   
Net cash used in operating activities  (7) (945)
   
Investing activities
Purchases of other intangible assets  (528) (819)
Purchases of property, plant and equipment   (51) (24)
Proceeds from sales of property, plant and equipment  4 —
Interest received  39 82
   
Net cash used in investing activities  (536) (761)
   
Net decrease in cash and cash equivalents  (543) (1,706)
   
Cash and cash equivalents at beginning of year  725 2,431
   
Cash and cash equivalents at end of year
Bank balances and cash  182 725
   
* See note 2.
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Notes to the Group Financial Statements
for the year ended 31 January 2009
1 Accounting Policies 
The Group and Company financial statements have been prepared in accordance with International Financial Reporting Standards 
as endorsed by the EU (“IFRS”). 
The financial statements have been prepared on the historical cost basis and have been applied on a consistent basis as discussed 
in the Financial review. The principal accounting policies adopted are set out below.
The Company made a loss after tax of £0.04m for the financial year. The Directors have taken advantage of the exemption available 
under section 230 of the Companies Act 1985 and not presented an income statement for the Company.
New Accounting Standards
From 1 February 2008, the Group has adopted IFRS 7 “Financial Instruments: Disclosures” and the complementary amendment 
to IAS 1 “Presentation of Financial Statements — Disclosures”. IFRS 7 introduces new requirements aimed at expanding the 
disclosure of information about the Group’s financial instruments. It requires disclosure of quantitative and qualitative information 
about exposure to risks arising from financial instruments. The amendment to IAS 1 introduces disclosures about the level and 
management of an entity’s capital. The Group has applied IFRS 7 and the amendments to IAS 1 in these financial statements, with 
the relevant disclosures included in note 31.
We have considered new standards, amendments to standards and interpretations, none of which have a material impact on the 
Group’s reported results or financial statements.
 
Basis of Consolidation
The Group financial statements consolidate the financial statements of eg solutions plc and the enterprises controlled by the Group 
(its subsidiaries) made up to 31 January each year. The financial statements are presented in pounds sterling and have been 
rounded to the nearest thousand except where otherwise indicated.
Subsidiaries
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue 
to be consolidated until the date that such control ceases. The financial statements of subsidiaries used in the preparation of the 
consolidated financial statements are prepared for the same reporting year as the parent Company and are based on consistent 
accounting policies. All inter-company balances and transactions, including unrealised profits arising from them, are eliminated.
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 historical cost, 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
Land and buildings —  20% straight-line
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
1 Accounting Policies continued
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.
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).
Inventories
Inventories are stated at the lower of cost and net realisable value. 
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 income statement 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 Group, 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. 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.
The results of overseas operations have been translated into sterling at the monthly weighted average rate of exchange for the 
period. Rand denominated assets and liabilities have been translated at the relevant rate of exchange at the balance sheet date of 
£1 = ZAR14.6971 (2008: £1 = ZAR14.4005).
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
1 Accounting Policies continued
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.
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 had not vested as of 1 February 2006.
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.
 
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Our Business Our Governance Our Accounts
1 Accounting Policies continued
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. The Group has no finance leases.
Critical accounting estimates and judgements
The preparation of Group financial statements in conformity with Generally Accepted Accounting Principles requires the use of 
accounting estimates and management to exercise its judgement in the process of applying the Group’s accounting policies. These 
judgements and estimates are based on historical experience and management’s best knowledge of the amounts, events or actions. 
Impairment of non-financial assets
The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. Intangibles 
are tested for impairment annually and at other times when such indicators exist. Other non-financial assets are tested for 
impairment when there are indicators that the carrying amounts may not be recoverable.
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be 
reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other 
sales taxes. The following criteria must also be met before revenue is recognised:
Maintenance Contracts
Income in respect of maintenance contracts is invoiced on an annual basis and recognised as earned.
Software Licences
For perpetual licences revenues are recognised once the software has been fully installed.
For fixed term licences revenues are recognised on a straight-line basis.
Implementation and software services
Revenues in respect of implementation and software services are recognised on a percentage completion basis.
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
2 Prior Year Adjustment
During 2008, following a review of its Research and Development policy, eg solutions plc identified that some software 
subcontractor costs relating to the year ended 31 January 2007 had not been capitalised. 
The total cost of this under capitalisation amounted to £103,000, which has increased intangible assets and reduced cost of sales.
During this review eg also identified that three of its products had been amortised too early. The three products in question were 
not available for general release until late January 2008. The total of this error amounted to £128,000, of which £107,000 related to 
the prior year and £21,000 related to earlier periods, which reduced cost of sales and increased intangible assets.
These adjustments resulted in a deferred tax liability of £65,000, of which £60,000 related to the prior year and £5,000 related to 
earlier periods.
The above adjustments have been adjusted through reserves.
2008 opening retained earnings were £0.3m and closing retained earnings were £(0.2)m.
The financial statements and all the related notes have been restated to reflect the changes that have been made.
The prior year adjustment resulted in a decrease in the loss for 2008 of £154,000 and an increase in net assets, at 31 January 2008 
of £166,000. This also changed the loss per share from 5p to 3.8p.
3 Revenue
An analysis of the Group’s revenue is as follows:
  Year ended  Year ended
  31 January 31 January
  2009 2008
  £’000 £’000
Continuing operations:
United Kingdom  3,465 3,775
South Africa  201 348
  
  3,666 4,123
  
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
4 Segmental Information
The Group segments 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.
Segmental Reporting 
 UK SA Group
  Restated  Restated  Restated
 31.01.09 31.01.08 31.01.09 31.01.08 31.01.09 31.01.08
Revenue
External revenue 3,465 3,775 201 348 3,666 4,123
Inter-segment revenue 165 300 128 125 — —
      
Total revenue 3,630 4,075 329 473 3,666 4,123
Gross profit 1,825 2,857 92 89 1,854 2,906
Administrative expenses (2,302) (3,298) (370) (291) (2,646) (3,589)
Inter-segment administrative expenses (54) (34) — — — —
      
Operating loss (531) (475) (278) (202) (792) (683)
Finance income 39 82 — — 39 82
      
Loss before tax (492) (393) (278) (202) (753) (601)
      
Corporation tax 92 41 (54) 58 33 99
      
Loss after tax (400) (352) (332) (144) (720) (502)
      
Other segment information
 UK SA Group
  Restated  Restated  Restated
 31.01.09 31.01.08 31.01.09 31.01.08 31.01.09 31.01.08
Segment assets 3,005 3,421 185 321 2,584 3,413
Segment liabilities (1,211) (1,254) (683) (513) (1,278) (1,116)
      
Net assets 1,794 2,167 (498) (192) 1,306 2,027
      
Capital expenditure
Property, plant and equipment 51 25 3 45 54 70
Intangible assets 528 818 — — 528 818
      
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.
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
5 Loss from Operations
This is stated after charging:
   Restated
  Year ended  Year ended
  31 January 31 January
  2009 2008
  £’000 £’000
Net foreign exchange losses  9 5
Research costs  4 —
Amortisation of development expenditure  236 13
Depreciation
— owned assets  63 85
Staff costs (see note 7)  2,587 3,122
Operating leases  161 123
  
6 Auditors’ Remuneration
The Group paid the following amounts to its Auditors in respect of the audit of the financial statements and for other services 
provided to the Group.
  2009 2008
  £ £
Audit of financial statements
 Ernst & Young  25 —
 Baker Tilly  5 18
  
  30 18
  
Other fees to Auditors
Local statutory audit for subsidiaries
 Ernst & Young  7 —
 Charles Orbach  6 5
Taxation services
 Ernst & Young  8 —
 Baker Tilly  7 6
Other services
 Ernst & Young  19 —
 Baker Tilly  2 4
  
  49 15
  
7 Staff Costs and Directors’ Emoluments 
The average monthly number of employees during the year was made up as follows:
  Year ended Year ended 
  31 January 31 January
  2009 2008
  Number Number
Implementation and training services  10 9
Software Support and Development  18 19
Sales and Marketing  6 8
Management and Administration  8 10
  
  42 46
  
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
7 Staff Costs and Directors’ Emoluments continued
The aggregate remuneration for the above persons comprised:
  Year ended  Year ended
  31 January 31 January
  2009 2008
  £’000 £’000
Wages and salaries  2,198 2,752
Social security costs  242 234
Other pension costs   147 136
  
  2,587 3,122
  
Included in wages and salaries is a total expense of share-based payments of £0.03m (2008: £0.06m).
Directors’ emoluments
  2009 2008
  £’000 £’000
Emoluments  402 429
Money purchase pension contributions  31 23
  
Total  433 452
  
    Total  Total 
 Salary and fees Benefits Other 2009 2008
 £’000 £’000 £’000 £’000 £’000
RP Baker-Bates 20 — — 20 30
EA Gooch 214 3 38 255 211
P Bird (resigned 19 May 2008) 28 — 3 31 62
V Parylo 71 1 9 81 —
(appointed 19 May 2008)
(resigned 20 March 2009)
A McRae 15 — — 15 15
M Wilton (resigned 31 August 2007) — — — — 100
J Pyke (resigned 23 November 2007) — — — — 11
     
 348 4 50 402 429
     
The pension contributions payable by the Group in respect of each Director during the year were:
  2009 2008
  £’000 £’000
RP Baker-Bates  — —
EA Gooch  21 19
P Bird (resigned 19 May 2008)  3 4
V Parylo  7 —
(appointed 19 May 2008)
(resigned 20 March 2009)
A McRae  — —
  
Total  31 23
  
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
8 Finance Income
  Year ended  Year ended
  31 January 31 January
  2009 2008
  £’000 £’000
Interest on bank deposits  39 82
  
9 Taxation
  Year ended  Year ended
  31 January  31 January
  2009 2008
  £’000 £’000
Current tax:
United Kingdom  (119) (156)
Tax in respect of prior periods  17 7
  
  (102) (149)
Deferred tax:
Origination and reversal of temporary differences  30 76
Tax in respect of prior periods  39 (26)
  
Tax attributable to the Group and its subsidiaries  (33) (99)
  
Domestic income tax is calculated at 28% (2008: 30%) of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. 
  Year ended  Year ended
  31 January  31 January
  2009 2008
  £’000 £’000
The charge for the year can be reconciled to the profit per the income statement as follows:
Loss before tax  (753) (601)
  
Tax at the domestic income tax rate 28% (2008: 30%)  (211) (180)
Tax effects of expenses that are not deductible in determining taxable profit  24 62
Other temporary timing differences  1 (3)
Research and development  (86) (98)
Marginal rate of tax  105 137
Prior year adjustments  56 (19)
Movement in unprovided deferred tax  78 —
Effect of different tax rates of subsidiaries operating in other jurisdictions  — 2
  
Tax credit  (33) (99)
  
Effective tax rate for the year  4% 16%
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
10 Dividends
In respect of the current year, the Directors propose that no dividend will be paid to shareholders (2008: Nil).
11 Loss Per Ordinary Share
   Restated
  Year ended  Year ended
  31 January 31 January
  2009 2008
From continuing operations  £’000 £’000
Basic  (5.5p) (3.8p)
Diluted  (5.5p) (3.8p)
EPS has been calculated using the following methodology:
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the number of weighted 
average ordinary shares during the period. The number of shares excludes shares held by an Employee Benefit Trust (see note 28 
share-based payments).
For diluted earnings per share, the number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential 
ordinary shares. These represent share options granted to employees.
As the Basic EPS is a negative value, the effects of anti-dilutive potential ordinary shares are ignored in calculating diluted EPS.
12 Group and Company — Intangible Assets 
   Development 
   costs
   £’000
Cost 
At 1 February 2007   358
Acquisitions — internally developed   716
 
At 1 February 2008 (As previously stated)   1,074
Prior year adjustment   103
 
At 1 February 2008 (Restated)   1,177
Acquisitions — internally developed   528
 
At 31 January 2009   1,705
 
Amortisation and impairment
At 1 February 2007   39
Amortisation for the year    124
 
At 1 February 2008 (As previously stated)   163
Prior year adjustment   (128)
 
At 1 February 2008 (Restated)   35
Amortisation for the year    236
 
At 31 January 2009   271
 
Carrying amount
At 31 January 2009   1,434
 
At 31 January 2008 (Restated)   1,142
 
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
13 Group — Property, Plant and Equipment 
 Computer and  Fixtures and Motor Land and
 office equipment fittings vehicles buildings Total
 £’000 £’000 £’000 £’000 £’000
Cost 
At 1 February 2007 374 108 6 — 488
Additions 70 — — — 70
     
At 1 February 2008 444 108 6 — 558
Additions 45 5 — 4 54
Disposals (20) (95) — — (115)
     
At 31 January 2009 469 18 6 4 497
     
Accumulated depreciation
At 1 February 2007 292 59 5 — 356
Depreciation charge for the year 78 7 — — 85
     
At 1 February 2008 370 66 5 — 441
Depreciation charge for the year 58 4 1 — 63
Disposals (16) (65) — — (81)
     
At 31 January 2009 412 5 6 — 423
     
Net book value
At 31 January 2009 57 13 — 4 74
     
At 31 January 2008 74 42 1 — 117
     
14 Company — Property, Plant and Equipment 
 Computer and  Fixtures and Motor Land and
 office equipment fittings vehicles buildings Total
 £’000 £’000 £’000 £’000 £’000
Cost
At 1 February 2007 374 108 6 — 488
Additions 24 — — — 24
     
At 1 February 2008 398 108 6 — 512
Additions 42 5 — 4 51
Disposals (20) (95) — — (115)
     
At 31 January 2009 420 18 6 4 448
     
Accumulated depreciation
At 1 February 2007 292 59 5 — 356
Depreciation charge for the year 62 7 — — 69
     
At 1 February 2008 354 66 5 — 425
Depreciation charge for the year 36 4 1 — 41
Disposals (16) (65) — — (81)
     
At 31 January 2009 374 5 6 — 385
     
Net book value
At 31 January 2009 46 13 — 4 63
     
At 31 January 2008 44 42 1 — 87
     
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
15 Subsidiaries
Details of the Group’s subsidiaries at 31 January 2009 are as follows:
  Proportion Proportion
 Place of incorporation  of 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 Solutions EBT Limited UK 100 100 Dormant
eg Operations Management (Pty) Ltd South Africa 100 100 Consultancy 
    and Software
The operating costs in relation to dormant companies are incurred through the Parent Company.
The cost of investments in subsidiary companies is £11 in total and is not included on the face of the balance sheet due to 
rounding.
16 Group — Trade and Other Receivables
  2009 2008
  £’000 £’000
Trade receivables  345 614
Less provision for impairment  (2) —
  
Net trade receivables  343 614
Other debtors  5 5
Prepayments and accrued income  166 182
Director’s loan  25 24
  
  539 825
  
17 Company — Trade and Other Receivables
  2009 2008
  £’000 £’000
Trade receivables  262 614
Less provision for impairment  (2) —
  
Net trade receivables  260 614
Inter-company debtor  606 479
Other debtors  — 1
Prepayments and deferred income  160 168
Director’s loan  25 24
  
  1,051 1,286
  
18 Inventories — Group and Company
  2009 2008
  £’000 £’000
Consumables  17 24
  
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
19 Group — Cash and Short-Term Deposits
  2009 2008
  £’000 £’000
Cash at bank and in hand  228 878
Short-term deposits  34 —
  
  262 878
  
20 Company — Cash and Short-Term Deposits
  2009 2008
  £’000 £’000
Cash at bank and in hand  182 725
  
  182 725
  
21 Group — Trade and Other Payables
Trade and other payables are as follows:
  2009 2008
  £’000 £’000
Payments on account  66 195
Trade creditors  203 305
Other tax and social security  217 193
Accruals and deferred income  577 276
  
  1,063 969
  
22 Company — Trade and Other Payables
  2009 2008
  £’000 £’000
Payments on account  66 193
Trade creditors  188 280
Inter-company creditor  — 119
Other tax and social security  208 190
Accruals and deferred income  534 267
  
  996 1,049
  
23 Obligations Under Operating Leases 
The Group has entered into commercial leases on certain properties and items of equipment. These leases have an average 
duration of between 1 and 5 years. 
Future minimum rental payable under non-cancellable operating leases are as follows:
  2009 2008
  £’000 £’000
Not later than one year  178 96
After one year but not more than five years   455 32
  
  633 128
  
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
24 Deferred Tax
   Restated
  2009 2008
  £’000 £’000
Group
Analysis for financial reporting purposes:
Deferred tax liabilities  395 313
Deferred tax assets  (180) (166)
  
Net position at 31 January  215 147
  
Unprovided deferred tax asset  135 —
The movement in the year in the Group’s net deferred tax position was as follows:
   Restated
  2009 2008
  £’000 £’000
At 1 February  147 97
Charge to income for the year  29 76
Adjustment in respect of prior period  39 (26)
  
At 31 January  215 147
  
The following are the major deferred tax liabilities and assets recognised by the Group and the movements thereon during the year:
   Accelerated 
   tax depreciation
Deferred tax liabilities   £’000
At 1 February 2007 restated   97
Charge to income for the year   218
Adjustment in respect of prior period   (2)
 
At 31 January 2008 restated   313
Charge to income for the year   82
 
At 31 January 2009   395
 
 Share-based 
 payments Tax losses Total
 £’000 £’000 £’000
Deferred tax assets:
At 1 February 2008 (4) (162) (166)
Credit to income for the year — (53) (53)
Adjustment in respect of prior period — 39 39
   
At 31 January 2009 (4) (176) (180)
   
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
24 Deferred Tax continued
At the balance sheet date, the Group has unused UK tax losses of £630,000 (2008: £369,000) available for offset against future 
profits. A deferred tax asset of £176,000 (2008: £104,000) has been recognised in respect of such losses.
In addition the Group has overseas tax losses in South Africa of £480,000, a deferred tax asset of £135,000 has not been 
recognised due to uncertainty of future profits.
  2009 2008
  £’000 £’000
Company
Analysis for financial reporting purposes:
Deferred tax liabilities  395 313
Deferred tax assets  (180) (108)
  
Net position at 31 January  215 205
  
The movement in the year in the Company’s net deferred tax position was as follows:
  2009 2008
  £’000 £’000
At 1 February restated  205 97
Charge to income for the year  29 134
Adjustment in respect of prior period  (19) (26)
  
At 31 January  215 205
  
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 2007 restated   97
Charge to income for the year   218
Adjustment in respect of prior period   (2)
 
At 31 January 2008 restated   313
Charge to income for the year   82
 
At 31 January 2009   395
 
 Share-based 
 payments Tax losses Total
 £’000 £’000 £’000
Deferred tax assets:
At 1 February 2008 (4) (104) (108)
Charge to income for the year — (53) (53)
Adjustment in respect of prior period — (19) (19)
   
At 31 January 2009 (4) (176) (180)
   
At the balance sheet date, the Company has unused tax losses of £630,000 (2008: £369,000) available for offset against future 
profits. A deferred tax asset of £176,000 (2008: £104,000) has been recognised in respect of such losses.
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
25 Share Capital — Group and Company
  2009 2008
  £’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 2009 or 2008 reporting periods.
The Group has one class of ordinary shares which carry no right to fixed income. During the year ended 31 January 2009, the 
Group granted 622,000 share options (2008: £Nil) under the Group’s share option plan (Note 28).
26 Group — Reserves 
   Share-based Own
 Share payment shares Retained Foreign
 premium reserve held earnings exchange Total
 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 February 2007 2,910 123 (1,000) 263 — 2,296
Share-based payments — 68 — — — 68
Loss for the year — — — (656) — (656)
Foreign exchange — — — — 10 10
Balance at 31 January 2008 
previously stated 2,910 191 (1,000) (393) 10 1,718
Prior year adjustment — — — 231 — 231
Deferred tax on prior year adjustment — — — (65) — (65)
Balance at 31 January 2008 
(restated) 2,910 191 (1,000) (227) 10 1,884
Share-based payments — 27 — — — 27
Loss for the year — — — (720) — (720)
Foreign exchange — — — — (28) (28)
      
Balance at 31 January 2009 2,910 218 (1,000) (947) (18) 1,163
      
The own shares held represent a loan to the ESOP Trust and the Company has de facto control of the shares held by the Trust and 
bears their benefits and risks.
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
27 Company — Reserves 
   Share-based Own
 Share payment shares Retained
 premium reserve held earnings Total
 £’000 £’000 £’000 £’000 £’000
Balance at 1 February 2007 2,910 123 (1,000) 263 2,296
Share-based payments — 68 — — 68
Loss for the year — — — (506) (506)
Balance at 31 January 2008 
previously stated 2,910 191 (1,000) (243) 1,858
Prior year adjustment — — — 231 231
Deferred tax on prior year adjustment — — — (65) (65)
Balance at 31 January 2008 2,910 191 (1,000) (77) 2,024
Share-based payments — 27 — — 27
Loss for the year — — — (400) (400)
     
Balance at 31 January 2009 2,910 218 (1,000) (477) 1,651
     
The own shares held represent a loan to the ESOP Trust and the Company has de facto control of the shares held by the Trust and 
bears their benefits and risks.
28 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 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.
 2009 2008
  Weighted   Weighted
  average exercise   average exercise
 Options price (£) Options price (£)
Outstanding at 1 February 420,000 0.48 520,000  0.54
Granted during the year 622,000 0.22 Nil —
Forfeited during the year 140,000 0.26 100,000 0.80
Exercised during the year Nil — Nil —
Expired during the year Nil — Nil —
     
Outstanding at 31 January 2009 902,000 £0.34 420,000 £0.48
     
Exercisable at 31 January 2009 Nil — nil —
     
The options outstanding at 31 January 2009 had an exercise price between 3.5 pence and 161.5 pence, and a weighted average 
remaining contractual life of 8.15 years (2008: 6 years).
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Our Business Our Governance Our Accounts
28 Share-based Payments continued
The inputs into the Black–Scholes option pricing model are as follows:
  2009 2008
Weighted average share price  £0.53 £0.47
Weighted average exercise price  £0.34 £0.48
Expected volatility  259% 259%
Expected life  8 years 8 years
Risk-free rate  5.5% 4.5%
Expected dividend yield  1.0% 1.0%
Weighted average fair value of options granted during the year  £0.22 —
  
 
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. Volatility since listing has been calculated using the daily mid-market share 
price. 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.
Share options are available to all employees who have completed their probation period.
eg solutions plc Employee Benefit Trust Ltd holds 1,176,470 ordinary shares of 1p, being 8.2% of the called up capital. 
29.  Reconciliation of Group Loss Before Tax to Net Cash Generated by Operations 
   Restated
  2009 2008
  £’000 £’000
Loss from operations  (792) (683)
Adjustments for:
Depreciation of property, plant and equipment  62 85
Loss on disposal of property, plant and equipment  31 —
Amortisation of intangible assets  236 13
Share option charge  27 68
  
Operating cash flows before movements in working capital  (436) (517)
Decrease/(increase) in receivables  258 (295)
Decrease/(increase) in stock  7 (24)
Increase/(decrease) in payables  94 (1)
  
Cash generated by operations  (77) (837)
  
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
30.  Reconciliation of Company Loss Before Tax to Net Cash Generated by Operations 
   Restated
  2009 2008
  £’000 £’000
Loss from operations  (531) (475)
Adjustments for:
Depreciation of property, plant and equipment  40 69
Loss on disposal of property, plant and equipment  31 —
Amortisation of intangible assets  236 13
Share option charge  27 68
  
Operating cash flows before movements in working capital  (197) (325)
Decrease/(increase) in receivables  236 (766)
Decrease/(increase) in stock  7 (24)
Increase/(decrease) in payables  (53) 79
  
Cash generated by operations  (7) (1,036)
  
31.  Financial Instruments and Related Disclosures — Group
An explanation of the Group’s financial instrument risk management objectives, policies and strategies are set out in the Directors’ 
Report on pages 18 to 21.
Policies for managing financial risks are governed by Board approved policies and procedures. Any proposed changes will be 
considered by the Board prior to such changes being implemented.
The key risks that the Group faces from a treasury perspective are as follows:
Liquidity Risk
Cash flow is managed on a daily basis, short-term and longer-term basis and management is therefore able to ensure that the 
Group has sufficient cash or facilities to meet all its commitments. The Group ensures that there is sufficient cash or working 
capital facilities to meet the cash requirements of the Group from the current business plan.
Forecast liquidity is reviewed weekly by management.
The Group has an agreed overdraft facility to 31 January 2010.
Banking covenants are monitored on a weekly basis to ensure that there are no current or potential future breaches. There have 
been no breaches of covenants during the reporting period.
Foreign Currency Risk
The Group is exposed to minimal foreign currency risk through transactions with overseas customers.
The Group is also exposed to exchange fluctuations which affect the value of its overseas subsidiary.
Credit Risk of Customers
With eg’s exposure to the financial services sector detailed reporting is provided weekly on the debt position and if required the 
Group will resort to legal action to recover any moneys due after a sufficient period of time.
Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and operate 
within current available facilities. This is reviewed by the Board on a monthly basis.
The Group manages its share capital and reserves as its Group capital.
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Our Business Our Governance Our Accounts
Notes to the Group Financial Statements continued
for the year ended 31 January 2009
31.  Financial Instruments and Related Disclosures — Group continued
The following table is a comparison by category of the carrying amounts and the fair values of the Group’s financial assets at 
31 January 2009 and 31 January 2008.
 2009 2009 2008 2008
 Carrying Fair Carrying Fair
 value value value value
 £’000 £’000 £’000 £’000
Cash and cash equivalents 262 262 878 878
Loans and receivables:
Trade and other receivables 373 373 643 643
     
Total financial assets 635 635 1,521 1,521
     
Financial liabilities
Trade and other payables 420 420 498 498
     
Total financial liabilities 420 420 498 498
     
Net financial assets 215 215 1,023 1,023
     
Trade and other receivables
  2009 2008
Financial assets in the scope of IAS 39  373 643
Other assets   166 182
   
  539 825
   
The following table shows the age of such financial assets which are past due and for which no provision for bad or doubtful debts 
has been raised.
  2009 2008
Past due by 1–30 days  52 216
Past due by 31–90 days   28 19
Past due by 91–180 days  23 151
  
The Group has not raised bad or doubtful debt provisions against these amounts as they are considered to be recoverable based 
on previous trading history.
The Group has provided £2,400 for bad debts. On grounds of materiality a reconciliation of the bad debt provision has not been 
provided.
The Directors believe the quality of outstanding debtors which are neither past due nor impaired to be fully collectable. The 
maximum exposure to credit risk is £0.3m (2008: £0.6m). The Directors do not believe there is any concentration of credit risk.
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
32.  Financial Instruments and Related Disclosures — Company
 2009 2009 2008 2008
 Carrying Fair Carrying Fair
 value value value value
 £’000 £’000 £’000 £’000
Cash and cash equivalents 182 182 725 725
Loans and receivables:
Trade and other receivables 891 891 1,118 1,118
     
Total financial assets 1,073 1,073 1,843 1,843
     
Financial liabilities
Trade and other payables 396 396 470 470
     
Total financial liabilities 396 396 470 470
     
Net financial assets 677 677 1,373 1,373
     
Trade and other receivables
  2009 2008
Financial assets in the scope of IAS 39  891 1,118
Other assets  160 168
   
  1,051 1,286
   
The following table shows the age of such financial assets which are past due and for which no provision for bad or doubtful debts 
has been raised.
  2009 2008
Past due by 1–30 days  52 216
Past due by 31–90 days   28 19
Past due by 91–180 days  23 151
  
The Company has not raised bad or doubtful debt provisions against these amounts as they are considered to be recoverable based 
on previous trading history.
The Company has provided £2,400 for bad debts. On grounds of materiality a reconciliation of the bad debt provision has not been 
provided.
The Directors believe the quality of outstanding debtors which are neither past due nor impaired to be fully collectable. The 
maximum exposure to credit risk is £0.3m (2008: £0.5m). The Directors do not believe there is any concentration of credit risk.
33.  Pensions
Employees are offered membership of the eg solutions Pension Plan, a defined contribution pension arrangement. The cost of 
contributions to the scheme is charged to the income statement in the period that they arise. The contributions to the scheme for 
the period amounted to £147k (2008: £136k) representing 3%–10% of pensionable salaries. The amounts outstanding at the year 
end were £16,227 (2008: £21,639).
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Notes to the Group Financial Statements continued
for the year ended 31 January 2009
34.  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.
  2009 2008
  £’000 £’000
Related parties  16 15
  
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.
The Group purchased the associated services under its normal terms of trade and payment was made under normal trading 
arrangements.
A Directors loan of £25k (2008: £24k) is due from EA Gooch. The maximum amount outstanding during the year was £25k 
(2008: £24k).
The loan is interest free and does not have a fixed repayment date.
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Shareholder Notes
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Shareholder Notes
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Notice of Meeting
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 16 June 2009 at 10.30 am, 
for the following purposes and, if thought fit, to approve the following resolutions:
As Ordinary business
1.  That the Directors’ Report and the annual report and accounts for the year ended 31 January 2009 be adopted and 
approved.
2.  That the Directors’ Remuneration for the year ended 31 January 2009 be approved.
3.  That Baker Tilly UK Audit LLP be appointed as the Company’s Auditors until the conclusion of the next annual general 
meeting, and the directors be authorised to fix their remuneration.
As Ordinary resolution
4.  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), 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
5.  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.
6.  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
Secretary
3 April 2009 !
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Our Business Our Governance Our Accounts
Form of Proxy
For use at the 2009 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 16 June 2009 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 16 June 2009 
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:
q 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 2009 be adopted and approved.
 2. That the Directors’ Remuneration for the year ended 31 January 2009 be approved.
 3. To appoint Baker Tilly UK Audit LLP as the Company’s Auditors until the
  conclusion of the next annual general meeting, and to authorise
  the Directors to determine the Auditors’ remuneration.
 4.  To authorise Directors to allot unissued shares.
 5.  To empower the Directors to allot equity securities for cash.
 6.  To authorise the Company to make market purchases of its shares.
Dated   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009
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 16 June 2009 at 10.30 am and any adjournment(s) thereof must be 
returned to the office of the Registrars by 14 June 2009. In each case the proxy appointments must be received not less than 48 hours before the time appointed for holding the 
meeting or any adjournment thereof. 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 ‘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.
e.  Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the register of members of the Company as at 10.30 am on 14 June 
2009 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.
f.  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).
g.  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.
!
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Second fold
Third fold
and tuck in ﬂ ap opposite
First fold
BUSINESS REPLY SERVICE
Licence No. MB122
Capita Registrars (Proxies)
PO Box 25
BECKENHAM
Kent
BR3  4BR
1 1
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16230EGSOLUTICVR.indd   3 16230EGSOLUTICVR.indd   3 08/05/2009   16:28 08/05/2009   16:28 16230 08/05/2009 Proof 7
intelligent operations management
intelligent operations management
 eg solutions plc 
Dunston Business Village, 
Stafford Road, Dunston, Stafford, 
Staffordshire, ST18 9AB, UK
t: +44 (0) 1785 715772 
f: +44 (0) 1785 712541
ask@eguk.co.uk 
www.eguk.co.uk
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