20218.04  27/04/2011 Proof 7
intelligent operations management
intelligent operations management
eg solutions plc
Annual Report and Accounts 
for the year ended 31 January 2011
Stock exchange code: EGS
Intelligent
Operations Management H ighl ights 2
eg at a Glance 4
Our Customers 6
Chairman’s Statement 8
Chief Executive Officer’s Statement 9
Board of Directors 12
Advisers 13
Corporate Social Responsibility 14
Directors’ Report 16
Directors’ Responsibilities in the preparation 
of the financial statements 20
Independent Auditor's Report 
to the members of eg solutions plc 21
Consolidated Statement of Comprehensive Income 22
Consolidated Statement of Financial Position 23
Company Statement of Financial Position 24
Consolidated Statement of Cash Flows 25
Company Statement of Cash Flows 26
Consolidated Statement of Changes in Equity 27
Company Statement of Changes in Equity 28
Notes to the Group Financial Statements 29
Notice of Meeting 57
Shareholder Notes 58
Contents 20218.04  27/04/2011 Proof 7
Nordics
UK
The Netherlands
Switzerland
Dubai
Bahrain
Qatar
South Africa
India
Hong Kong
Taiwan
Singapore
 eg operational 
  intelligence
®
  
software suite users
users of eg software worldwide 
intelligent operations management
intelligent operations management
Where we operate
 eg offices
Using our software and solutions we can 
guarantee improvements in operational results in 
short timescales. On average, each customer will 
save between 20% and 50%.
what we do
eg solutions plc is a leading back office optimisation 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 users of the eg operational 
intelligence
®
 software suite across blue-chip companies throughout the world. 
41,000
Highlights 3 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
Financial Highlights
l Revenue up 24% to £5.1m (2010: £4.2m)
l Profit before tax and costs relating to the XTAQ 
acquisition* up 355% to £0.5m (2010: £0.1m)
l Positive cash generation – year-end cash: £0.5m 
(2010: £0.4m)
l Basic Earnings Per Share 3.7p (2010: 0.7p) 
l £0.6m invested in R&D (2010: £0.6m)
*  Costs relating to the XTAQ acquisition comprises £96,000  
(2010: nil) consisting of £67,000 professional services costs  
and £29,000 management costs.
Operational Highlights
l Good flow of new orders from existing and new 
customers
l Acquisition of XTAQ Limited fully integrated and 
pipeline converted, as planned, with £1.1m closed 
sales
l Significant increase in South African revenues
l Winner of Birmingham Post International trade & 
export award
l ICT certification from Accredit UK, recognising high 
standard of software product design and 
development
Revenue
+24%
to £5.1m
(2010: £4.2m)
Licences, services  
& maintenance 
68%
of revenue maintained 
for 3 successive years
 
100
90
80
70
60
50
40
30
May 10 Jul Sep Nov Jan 11 Mar
Share Price (p) Annual Report & Accounts 2011 www.eguk.co.uk 4 Our Business
20218.04  27/04/2011 Proof 7
23
years of 
operational management experience
eg at a glance
eg is the only back office optimisation software company that 
guarantees return on investment and is paid based on the 
results delivered — implementations will pay for themselves, 
typically within six months.
l Tried, tested and proven operational 
intelligence solutions that deliver dramatic 
improvements in efficiency
l Over 23 years optimising back office 
performance with operations management 
software & solutions
l International blue-chip client base
l 41,000+ users across Europe, Middle East, 
Africa and Asia
l Offices in the UK and South Africa
l Guaranteed benefit realisation programmes
l Rapid Return on Investment (ROI) — 
2:1 ROI in six months
l 100% of customers would recommend  
eg to others
l Accredited by BankSETA, South Africa’s 
leading award body for training and national 
qualifications in the banking industry.
Our credentials
In a recent survey 100% of 
customers said they would 
recommend eg. Why would 
they recommend eg?
l Results achieved
l Benefit realisation guarantee
l Track record & experience 5 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
Helping you deliver a step  
change in back office operational 
performance. 
l MANAGE the quality of work
l REPORT on throughput, service, quality, 
skills and productivity
Improve
Measure
eg‘s software provides historic, 
real-time and predictive 
Management Information.
l FORECAST skills and staffing requirements
l PLAN use of resources
Back office optimisation
eg’s software provides the full functionality required to manage  
people and process performance in the back office.
A consistent approach to 
managing work, people and 
processes anywhere in the world. 
l ALLOCATE work according to priorities, 
availability and skills
l TRACK work through end-to-end processes
Manage Annual Report & Accounts 2011 www.eguk.co.uk 6 Our Business
20218.04  27/04/2011 Proof 7
we’re committed
to our customers
Some of our customers 7 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
What our customers say about us
“I have always received an 
excellent service whenever I have 
contacted eg for support and 
assistance.”
Nicola Webb, Cheshire Building Society
“We achieved significant 
operational management benefits 
in terms of improved service, 
quality and productivity through 
the use of eg’s software and 
principles. The information 
provided by the software has given 
us the ability to monitor end-to-
end processes on a real-time basis 
and make the right decisions, 
whilst staff performance has 
improved at all levels.”
IT Operations Manager, Medical Insurance 
Provider
“When customers call to check on 
the progress of their application, 
we can now see exactly where the 
back office is in processing an 
application, and can tell the 
customer there and then. The 
process really enhances the 
customer experience.”
Call Centre Phone Coach, Nationwide
“At the outset of this project eg 
guaranteed that Legal & General 
could achieve cost savings of at 
least 20% — but in fact achieved 
34%. What’s more the project has 
been identified by eg as an 
example of best practice 
implementation and use of its 
software and principles”
Project Manager, Legal & General Annual Report & Accounts 2011 www.eguk.co.uk 8 Our Business
20218.04  27/04/2011 Proof 7
Chairman’s Statement
Introduction
I am pleased to be able to report another successful year for 
eg. The business has built upon the solid foundations 
established between 2007 and 2009 to deliver strong 
profitable growth and further strengthened our platform for 
future expansion. As anticipated, the past year has seen the 
full potential of the back office optimisation market starting to 
emerge, in both the UK and overseas. At the same time 
financial institutions have continued to focus on minimising 
back office costs and improving operational control. This has 
translated into strong demand for eg’s products and services 
with trading in the second half of the year continuing the 
momentum of the first half. 
The growth in revenue achieved reflects contract wins from 
both new and existing customers, with a strong performance 
by our South African business which reported more than £1.2 
million of revenues during the full year (2010: £0.35 million). 
The UK business benefited from significant repeat business 
from existing customers as well as the order pipeline of XTAQ, 
acquired in March 2010, converting according to plan. 
We have continued to maintain tight control over costs, taking 
action in the second half following the acquisition of XTAQ to 
reduce the overall cost base. This resulted in improved 
margins and strong operational cash flow.
Financial results
Our financial performance demonstrates our success in 
creating a business platform that can consistently generate 
and sustain high quality revenue. Last year total revenues 
increased by 24% to £5.1 million (2010: £4.2 million), with 
software licences, maintenance and software services 
contributing 68% of revenues (2010: 70 per cent) and the 
balance coming from implementation and training services. 
Overall gross margin for the year was maintained at 63% 
(2010: 63 per cent) although, excluding sales of third party 
licences by XTAQ, underlying gross margin on our core product 
sales improved.
Underlying profit before tax and costs relating to the XTAQ 
acquisition increased by 355% to £0.5 million (2010: £0.1 
million), demonstrating the scalability of the business, with 
strong revenue growth being achieved on a well managed cost 
base. Costs relating to the XTAQ acquisition comprises 
£96,000 (2010: nil) consisting of £67,000 professional services 
costs and £29,000 management costs. 
After a tax credit of £127,000, underlying profit after taxation 
and costs relating to the XTAQ acquisition was up 535% to 
£0.6 million (2010: £0.1 million). 
Operating cash flow was £814,000 (2010: £728,000). The 
Company has a healthy financial position with cash and cash 
equivalents at 31 January 2011 of £0.5m (2010: £0.4 million).
The Board is not recommending the payment of a final 
dividend as we continue to re-invest profits in expanding the 
business. 
Current trading and outlook
The momentum of last year has continued into the start of this 
year. We have a strong sales pipeline and expect to continue 
to win new contracts from new and existing customers, as well 
as benefiting during 2011/12 from contracts won last year. 
Current trading is positive with contracted and recurring 
revenues accounting for 54% of our forecast revenues for the 
year (2010: 52 per cent). 
The Board plans to build on this success and we are confident 
of further profitable growth in the current year.
Rodney Baker-Bates
Non-Executive Chairman
3 May 2011
Rodney Baker-Bates
Non-Executive Chairman 9 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
Chief Executive Officer’s Statement
Introduction
The increasing momentum in eg’s financial performance over 
the past year reflects strong underlying demand for our 
products and services, together with our focus on developing 
and delivering back office optimisation solutions that deliver 
tangible cost savings for our customers. This has enabled us 
to grow revenues from existing users as well as expand our 
customer base both organically and through the acquisition of 
XTAQ Limited. 
eg’s financial performance follows management’s decision 
three years ago to restructure the fundamentals of the 
business. This involved focusing on building recurring and 
repeatable revenues, changing the implementation model to 
enable clients to do more of the implementation work 
themselves, reducing direct and overhead costs and investing 
in product development. Our success in selling eg’s products 
and services more widely and deeply to existing customers has 
also enabled us to deliver strong recurring and repeatable 
revenues and the product development undertaken has 
ensured that the Company’s technology platform is both 
robust and scalable as well as compatible with the ‘cloud’ and 
other technologies used in enterprise management systems. 
The Nuqleus product set, acquired with XTAQ, provides 
real-time data capture capability that reduces manual data 
entry routines. For our customers this provides an alternative 
integration mechanism with incumbent IT platforms without 
diverting their IT resources from other priorities. We are also 
addressing the growing demand from organisations seeking to 
combine the provision of real-time and historic management 
information from the back office with more advanced 
forecasting and planning capabilities usually found in the front 
office. This is achieved using our own products as well as by 
exporting data into the solutions either of other vendors or 
developed by our customers. 
Internationally, the growth and profitability achieved in South 
Africa was encouraging and validates the Company’s decision 
to invest in that market. Following this success, and with 
opportunities identified with a number of customers and other 
business partners, we are planning to expand selectively into 
other new territories. 
During the year, we have continued to maintain tight cost 
control and achieved annual savings of approximately 
£165,000 following the acquisition of XTAQ Limited.
Business development and operations
Market development
The growth potential of the back office optimisation market is 
increasingly being recognised. DMG Consulting estimated in its 
2010 Workforce Management Market Report, that the back office 
market has the potential to become at least three to seven times 
the size of the contact centre segment of the workforce 
management market. Other analysts have also forecast that 
demand for new types of software that continuously monitor and 
analyse people and process could have a value of approximately 
$3.5 billion over the next few years.
For eg this will mean new sales opportunities as workforce 
management vendors increase their marketing of ‘back office’ 
solutions. We are well placed to capitalise on the significant 
growth in market demand we expect over the next few years. 
The range of eg’s products and services addresses all of the 
key aspects of back office optimisation requirements, including 
resource forecasting and planning, end-to-end as well as 
intra-day and intra-process work allocation and tracking, and 
operational management and reporting, all in real-time.
Growing industry recognition of eg as the provider of the most 
comprehensive back office optimisation software functionality will 
be a significant factor in our future success and it is encouraging, 
as we move forward, that we have strong endorsement of our 
products through our growing customer base.
Customer base growth
During the past year the total number of eg customers 
increased from 29 to 42. The expansion of our customer base 
reflects the growing recognition of eg’s leading position in the 
back office optimisation market, our strong long-term 
customer relationships, the measurable value added by our 
products and services and the benefits of the Company’s 
technology and product development programme.
 “Internationally, the growth 
and profitability achieved in 
South Africa was encouraging 
and validates the Company’s 
decision to invest in that 
market.”
Elizabeth Gooch,
Chief Executive Officer
Elizabeth Gooch
Chief Executive Officer Annual Report & Accounts 2011 www.eguk.co.uk 10 Our Business
20218.04  27/04/2011 Proof 7
Chief Executive Officer’s Statement continued
New projects undertaken during the year included 
implementations of Nuqleus in the UK for Aviva, Bradford & 
Bingley and Citibank, with a further contract signed at the end 
of the year with Produban UK, part of the Santander group. 
Other projects included the roll-out of eg work manager
®
 for 
Vital, a Norwegian life and pensions insurance company, and 
services relating to the implementation of licences bought by 
Nationwide and a major UK life and pensions company in 
2009/10. Wins in South Africa included implementations for 
one of South Africa’s largest healthcare Administrators is in the 
open and closed medical scheme markets, Silica (an 
outsourcing company) and a pilot implementation for 
Alexander Forbes (provider of financial and risk services).
During 2010 eg’s Professional Services team undertook over 
20 fee earning projects for existing customers looking to 
leverage their investments in our products. Significantly a 
number of these projects involved customers migrating their 
systems onto new virtualised server platforms and we believe 
such projects will be a trend through 2011. Custom reporting 
projects were also significant as customers looked to publish 
increasingly sophisticated operational management 
information across their enterprises. Significant projects 
included;  
  A First Contact Resolution Reporting project for a major 
outsourcer
  A Virtual Server Migration project for a major building 
society
  Development of a real-time Customer Experience 
Management enquiry tool for the call centre of a major 
outsource provider 
  A Field Sales New Business reporting project for a major UK 
insurer, and 
  A major platform migration project for a customer 
centralising and virtualising their eg servers.
Underpinning our growth is a high level of repeat business, 
with approximately 60% of revenues last year coming from 
existing customers who provide strong endorsement of eg’s 
products and services. Customer service remains a key priority 
for eg and in a recent survey, 100% of eg’s customers said 
that they would recommend the Company to others, the 
majority because of the results achieved. Also in the bi-annual 
customer satisfaction survey of our Helpdesk and Software 
Support service, covering 41,000 software users, the Company 
scored an average of 8.4 out of 10 for the quality of service 
provided.
Technology and product development
During the year the Company continued to enhance and 
develop both its technology platform and its products to 
improve performance, add functionality and enable delivery 
across any enterprise system. 
Key product developments included:
  Completion of eg work manager
®
 v6.0, a ‘thin client’ web 
browser version of eg’s core eg work manager
®
 product, 
built using the latest Microsoft Silverlight and Windows 
Communication Foundation technologies. This latest product 
has been designed to enable customers to deploy and 
extend the use of eg work manager
®
 more easily, 
providing a lower total cost of ownership for deployments ‘on 
premise’ or ‘on the cloud’. The product has been designed to 
work with the existing eg work manager
®
 database, 
enabling both new and existing customers to use the new 
version without the need for existing product upgrades; 
 Enhancement to the eg integration framework™, an 
open, standards based Software Development Kit (SDK) 
designed to simplify and shorten integration project 
timescales;
  Enhancement to Nuqleus to enable integration with Verint
®
 
Impact 360
®
 Recording™ system for call centres and for 
compatibility with zero footprint Citrix environments;
  Further releases of eg operational intelligence
®
 and  
eg operational intelligence
®
 data views; 
  The release of a new product, eg operational 
intelligence
®
 data views for BusinessObjects enabling 
customers with SAP BusinessObjects business intelligence 
platforms to interrogate eg’s operational data via a 
BusinessObjects universe; and
  Certification of eg work manager
®
 and eg operational 
intelligence
®
 for Microsoft Server 2008 and SQL Server 
2008 platforms. 
Acquisition
The integration of the operations and products of XTAQ, 
acquired in March 2010, was completed as planned along with 
approximately £165,000 of cost savings achieved by 
centralising operations at eg’s office and streamlining the 
XTAQ business.
“We are well placed to 
capitalise on the significant 
growth in market demand we 
expect over the next few years. 
The range of eg’s products and 
services address all of the key 
aspects of back office 
optimisation requirements”
 “A significant focus for  
the UK business in 2010 was 
converting XTAQ’s pipeline . . . 
Orders for Nuqleus won during 
the year had a total value of 
approximately £1.1 million” 11 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
The addition of the Nuqleus software into the eg product set 
extends our ability to meet the back office optimisation 
requirements of our customers. Nuqleus is the logical entry 
product for customers who want to begin the measurement, 
management and improvement stages to transform their 
operational performance.
Against this background, a significant focus for the UK 
business in 2010 was converting XTAQ’s pipeline and 
implementing the projects concerned. Orders for Nuqleus won 
during the year had a total value of approximately £1.1 
million. The first project, with Aviva, moved to further roll-outs 
having successfully completed the pilot stage prior to 
acquisition. Other wins include contracts from Citibank and 
Bradford & Bingley, with a contract with Produban UK, part of 
the Santander group being closed at the end of the year.
The final consideration for XTAQ was £175,893 comprising 
£33,333 in cash and £142,560 in 5% Convertible Unsecured 
Loan Notes 2012, convertible at 82.5 pence per share. Since 
completion, options for 1.13 million eg shares, with a 4-year 
vesting period and an exercise price of 55 pence, have been 
awarded to key XTAQ employees on achievement of agreed 
sales targets. 
Industry recognition
In July eg achieved ICT certification from Accredit UK in 
recognition of the high standard of our software product 
design and development. In September eg won the 
International Trade & Export category of the inaugural 
Birmingham Post Business Awards 2010.
People
eg is fortunate in being able to attract and retain good quality 
people and the Company is committed to providing training 
and career development programmes to enable this to 
continue.
At the end of 2010, 72% of eg employees had been with the 
Company for 5 years or more with the Staff Satisfaction 
Survey for 2010 showing an overall satisfaction score of 8.3 
out of 10. 
The Board would like to thank everyone at eg for their efforts 
during the past year. 
Future priorities
eg has demonstrated through the momentum achieved over 
the past year, that it has the management, products and 
scalable business model to capitalise on the substantial 
opportunities available in the emerging back office 
optimisation software market. 
Following the successful integration of XTAQ and, with 
customer demand continuing to be strong, the Company will 
continue to grow its order pipeline in both the UK and 
overseas.
24 March 2011
Elizabeth Gooch
Chief Executive Officer
3 May 2011 Annual Report & Accounts 2011 www.eguk.co.uk 12 Our Governance
20218.04  27/04/2011 Proof 7
Board of Directors
Elizabeth Gooch
Chief Executive Officer
Elizabeth Gooch started her career in the 1980s as an 
in-house consultant at Forward Trust, a subsidiary of 
Midland Bank. She then moved to Birmingham Midshires 
before establishing eg in 1988. After working for some 
manufacturers, Elizabeth introduced their proactive 
management of processing and operations into the back 
offices of financial services businesses. Based on this 
experience, Elizabeth designed and launched the eg 
operational intelligence
®
 software suite.
Today, having successfully implemented eg’s Operational 
Management solutions in large financial services 
companies such as HBOS, 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.
Rodney Baker-Bates
Non-Executive Chairman
Rodney 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 Deputy Chairman of Co-operative Financial 
Services, Chairman of Stobart Group plc and holds a 
number of Non-Executive roles including, Royal Pension 
Fund for Nurses and Bedlam Investment Management. 13 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
Advisers
Secretary
TLT Secretaries Limited
One Redcliffe Street
Bristol
BS1 6TP
Registered Office
Barn 1
Dunston Business Village 
Stafford Road
Dunston
Stafford
Staffordshire
ST18 9AB
Company Registration No.
2211062
Reporting Accountants and Auditors
Baker Tilly UK Audit LLP
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5BB
Solicitors
TLT Solicitors
Sea Containers House
20 Upper Ground
Blackfriars Bridge
London 
SE1 9LH 
Nominated Adviser and Broker
Arbuthnot Securities Limited
Arbuthnot House
20 Ropemaker Street
London
EC2Y 9AR
www.eguk.co.uk
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.
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. Annual Report & Accounts 2011 www.eguk.co.uk 14 Our Governance
20218.04  27/04/2011 Proof 7
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
Our offices are energy efficient offices and in utilising the 
latest technology we are endeavouring to minimise our impact 
on the 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
Since establishing 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 organise annual 
educational outings for the children and has provided items 
from a “wish list” of educational items using some of the 
funds raised to expand the facilities they have available and 
contribute towards the children’s education.
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.
For the third year running eg have been accredited with level 
3 status (out of 10, 1 is the highest score). 15 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
eg operations management  
solutions (pty) limited
Groundfloor
Spire House
Fountain Grove Office Park
5 Second Road
Hyde Park
Sandton 2196
Johannesburg
South Africa
Tel: +27 (0) 11 447 6218
Fax: +27 (0) 11 447 0313
ask@egsa.co.za 
www.egsa.co.za
“eg have supported me 
in achieving a recognised 
professional qualification 
the highest level in the 
PRINCE project management 
— the de facto standard 
for project management in the 
UK is practised worldwide. 
This has helped not only my 
personal development but 
further enhanced the quality of 
service that we provide to our 
customers. eg have provided 
the support and funding to 
enable me to do this.”  
Teri Febery, Senior Client Solutions Manager Annual Report & Accounts 2011 www.eguk.co.uk 16 Our Governance
20218.04  27/04/2011 Proof 7
Directors’ Report
The Directors submit their report and the financial statements 
of eg solutions plc for the year ended 31 January 2011.
Principal Activities
The principal activity of the Group is that of an IT and 
software support services business delivering guaranteed 
improvements in operational 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.
FINANCIAL REVIEW
Overview
In the year ended 31 January 2011, revenue was £5.15m, an 
increase of £1.0m (2010: £4.15m). The Group built on the 
return to profit of the previous year producing a profit from 
operations of £0.36m (2010: £0.10m).
Revenue Analysis
Revenue earned in the first half of the year was £2.41m 
compared with £2.09m in the same period for the prior year. 
The Group produced a pleasing second half result with 
revenue of £2.74m, a 33% increase on 2010 £2.06m.
Profit Before Taxation
The Group produced a profit before taxation of £0.36m. 
(2010: £0.10m). 
Taxation
The Group has benefited from the favourable tax relief given 
on development expenditure. The effective rate of taxation 
credit is 36% (2010: effective rate of tax charge 8%).
Earnings Per Share
Earnings per share on a basic and fully diluted basis was 3.7p 
and 3.5p respectively. In the prior year the basic earnings per 
share was 0.7p and on a fully diluted basis 0.6p.
Results and dividend
The trading results are set out on page 22. The Directors do 
not recommend the payment of a final dividend on the 
ordinary shares (2010: £nil).
Research and Development & Capital Expenditure
The Group spent £1.10m on direct staff and contractor costs 
for research and development, of which £0.55m was 
capitalised. An additional £0.10m, in relation to direct costs, 
was also capitalised. In 2010 the Group expended £0.99m on 
direct staff and contractor costs developing its software 
product of which £0.47m was capitalised. An additional 
£0.10m, in relation to direct costs, was also capitalised. The 
expenditure relates to the development of new and enhanced 
software offerings. 
Cash Flow
The Group at 31 January had interest-earning cash balances 
of £0.49m. (2010: £0.41m). Cash inflow in the year was 
£0.08m (2010: inflow £0.15m). 
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.  
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.
 Note 2011 2010
Revenue  A £5,148,000 £4,150,000
% Change B 24.0% 13.2%
Gross Margin % C 62.7% 62.7%
Profit from operations % D 6.9% 2.4%
Profit after tax % E 9.4% 2.2%
Retained Cash Balances A £487,000 £410,000
Cash inflow  A £82,000 £148,000
Research and Development Expenditure on staffing costs
(including capitalised staff development costs) A £1,096,000 £988,000 
Debtor Days F 29 27
Creditor Days F 31 35
    17 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
A Revenue, Cash and cash equivalents, 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 Statement of 
Comprehensive Income in the financial statements.
D Profit from operations is the profit from operations as a percentage of revenue.
E Profit after tax is the profit 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 
12 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 to UK 
registered charities of £54,000 (2010: £15,000), including the 
Elton John Aids Foundation and The Caudwell Charitable Trust. 
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, 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. 
Financial Risk Management Objectives and Policies
The main financial risks faced by the Group relate to the risk 
of default to financial transactions by customers, availability of 
funds to meet the Group’s needs and fluctuations in foreign 
exchange rates. Annual Report & Accounts 2011 www.eguk.co.uk 18 Our Governance
20218.04  27/04/2011 Proof 7
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.
Credit Risk
The objective is to reduce the risk of loss arising from default 
to financial transactions by customers. The Group has focused 
on selling to a “blue chip” customer base thereby minimising 
the risk of incurring bad debts. The Group’s positions with 
these counterparties and their credit ratings are routinely 
monitored.
Liquidity
At the year end the Group had £0.49m in net cash balances. 
The objective is to ensure that operating profits are turned 
into cash balances during the year. The policy is to monitor the 
cash balance and keep a positive balance.
The Group finances its operations through retained profits and 
has an overdraft facility to provide additional liquidity if 
required.
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. The Group’s 
objective is to minimise exchange risks and the policy is to 
match cash payments and receipts in each currency wherever 
possible. Currency fluctuations are regularly monitored but the 
Group does not use any hedging instruments.
Directors
The following Directors have held office since 1 February 
2010:
RP Baker-Bates 
EA Gooch
A McRae
Directors’ Interests in Shares 
Directors’ interests in the shares of the Group as at 31 January 2011, including family interests, were as follows:
 Beneficial
 Ordinary shares  Ordinary shares 
 of 1p each  of 1p each 
 31 January 31 January
 2011 2010
Beneficial
RP Baker-Bates 775,000 775,000
EA Gooch 8,129,720 8,129,720
A McRae 20,000 20,000
  
EA Gooch is a Director of eg solutions plc EBT Limited which is the sole trustee of the eg solutions plc Employee Benefit Trust 
which held 1,036,470 shares at the year end. 
Directors’ Report continued 19 eg solutions plc www.eguk.co.uk
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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 2011 
were 31 days (2010: 35 days).
Statement as to disclosure of information to Auditors
The Directors who were in office on the date of approval of 
these financial statements have confirmed that, as far as they 
are aware, there is no relevant audit information of which the 
Auditors are unaware. Each of the Directors have confirmed 
that they have taken all the steps that they ought to have 
taken as Directors in order to make themselves aware of any 
relevant audit information and to establish that it has been 
communicated to the Auditor.
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 16 March 2012.
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 16 March 2012 the Directors currently have no reason 
to believe that it will not be extended or that the Group could 
not obtain other sources of funding.
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 Baker Tilly UK Audit LLP as Auditors 
will be put to the members at The annual general meeting of 
the Company which will be held at 10.30am on 8 June 2011 at 
2nd Floor, 22 Soho Square, London, W1D 4NS. 
Approval
This report was approved by the Board of Directors on 3 May 
2011 and signed on its behalf by:
EA Gooch
Chief Executive Officer
3 May 2011 Annual Report & Accounts 2011 www.eguk.co.uk 20 Our Governance
20218.04  27/04/2011 Proof 7
Directors’ Responsibilities in the Preparation 
of the Financial Statements
The Directors are responsible for preparing the Directors’ 
Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors to prepare Group and 
Company financial statements for each financial year.  The 
Directors are required by the AIM Rules of the London Stock 
Exchange to prepare Group financial statements in accordance 
with International Financial Reporting Standards (“IFRS”)  as 
adopted by the European Union (“EU”) and have elected under 
company law to prepare the Company financial statements in 
accordance with IFRS as adopted by the EU.
The financial statements are required by law and IFRS 
adopted by the EU to present fairly the financial position of the 
Group and the Company and the financial performance of the 
Group. The Companies Act 2006 provides in relation to such 
financial statements that references in the relevant part of that 
Act to financial statements giving a true and fair view are 
references to their achieving a fair presentation.
Under company law the Directors must not approve the 
financial statements unless they are satisfied that they give a 
true and fair view of the state of affairs of the Group and the 
Company and of the profit or loss of the Group for that period. 
In preparing the Group and Company financial statements, the 
Directors are required to:
a. select suitable accounting policies and then apply them 
consistently;
b. make judgements and accounting estimates that are 
reasonable and prudent;
c. state whether they have been prepared in accordance with 
IFRSs adopted by the EU;
d. prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the Group 
and the Company will continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Group’s and 
the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Group and 
the Company and enable them to ensure that the financial 
statements comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of the Group and 
the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included on 
the eg solutions plc website.
Legislation in the United Kingdom governing the preparation 
and dissemination of financial statements may differ from 
legislation in other jurisdictions. 21 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7
Independent Auditor’s Report to the Members of eg solutions plc
We have audited the Group and parent Company financial 
statements (“the financial statements”) on pages 22 to 56. 
The financial reporting framework that has been applied in 
their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European 
Union and, as regards the parent Company financial 
statements, as applied in accordance with the provisions of 
the Companies Act 2006. 
This report is made solely to the Company’s members, as a 
body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. 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
As more fully explained in the Directors’ Responsibilities 
Statement set out on page 20, the Directors are responsible 
for the preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our responsibility 
is to audit and express an opinion on the financial statements 
in accordance with applicable law and International Standards 
on Auditing (UK and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements 
is provided on the APB’s website at www.frc.org.uk/apb/scope/
private.cfm.
Opinion on the financial statements
In our opinion: 
  the financial statements give a true and fair view of the 
state of the Group’s and the parent Company’s affairs as at 
31 January 2011 and of the Group’s profit for the year then 
ended;
  the Group financial statements have been properly 
prepared in accordance with IFRSs as adopted by the 
European Union
  the parent Company’s financial statements have been 
properly prepared in accordance with IFRSs as adopted by 
the European Union and as applied in accordance with the 
Companies Act 2006; and
  the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion the information given in the Directors’ Report 
for the financial year for which the financial statements are 
prepared is consistent with the financial statements.
Matters on which we are required to report by 
exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
  adequate accounting records have not been kept by the 
parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or
  the parent Company financial statements are not in 
agreement with the accounting records and returns; or
  certain disclosures of Directors’ remuneration specified by 
law are not made; or
  we have not received all the information and explanations 
we require for our audit.
Geoff Wightwick FCA (Senior Statutory Auditor)
For and on behalf of BAKER TILLY UK AUDIT LLP, 
Statutory Auditor
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF 
3 May 2011 Annual Report & Accounts 2011 www.eguk.co.uk 22 Our Accounts
20218.04  27/04/2011 Proof 7
  Year ended Year ended 
  31 January 31 January 
  2011 2010 
 Note £’000 £’000
Revenue 3 5,148 4,150
Cost of sales  (1,923) (1,550)
   
Gross profit  3,225 2,600
Administrative expenses  (2,869) (2,502)
   
Profit from operations 5 356 98
Finance income 8 1 1
Finance charges 8 (2) —
   
Profit before tax  355 99
Tax credit/(charge) 9 127 (8)
   
Profit for the year  482 91
   
Other comprehensive income:
Exchange differences on translation of foreign operation  40 14
   
Total comprehensive income for the year  522 105
   
Profit and total comprehensive income attributable to equity shareholders 
of the Parent Company  522 105
   
Earnings per share
From continuing operations   
Basic 11 3.7p 0.7p
Diluted 11 3.5p 0.6p
Consolidated Statement of Comprehensive Income
for the year ended 31 January 2011 23 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
Consolidated Statement of Financial Position
as at 31 January 2011
  At 31  At 31
  January  January 
  2011  2010 
 Note £’000 £’000
Assets
Non-current assets
Intangible assets 12 2,382 1,705
Property, plant and equipment 13 87 50
   
  2,469 1,755
   
Current assets
Trade and other receivables 16 1,068 642
Inventories 18 18 18
Current tax receivable  11 50
Cash and cash equivalents 19 487 410
   
  1,584 1,120
   
Total assets  4,053 2,875
   
Liabilities
Current liabilities
Trade and other payables 21 1,559 1,169
   
  1,559 1,169
   
Non-current liabilities
5% Convertible loan note 34 137 —
Deferred tax liabilities 24 277 254
   
  414 254
   
Total liabilities  1,973 1,423
   
Net assets  2,080 1,452
   
Equity
Share capital 26 143 143
Share premium  2,910 2,910
Share-based payment reserve  352 208
Own shares held  (881) (949)
Retained earnings  (488) (856)
Foreign exchange  36 (4)
Other reserves  8 —
   
Total equity  2,080 1,452
   
The financial statements on pages 22 to 56 were approved by the Board of Directors and authorised for issue on 3 May 2011 and 
are signed on its behalf by:
Elizabeth Gooch
Chief Executive Officer Annual Report & Accounts 2011 www.eguk.co.uk 24 Our Accounts
20218.04  27/04/2011 Proof 7
  At 31  At 31
  January  January 
  2011  2010 
 Note £’000 £’000
Assets
Non-current assets
Intangible assets 12 2,382 1,705
Property, plant and equipment 14 49 45
Investments in subsidiaries 15 — —
   
  2,431 1,750
   
Current assets
Trade and other receivables 17 636 527
Inter-company receivables  817 757
Inventories 18 18 18
Current tax receivable  11 50
Cash and cash equivalents 20 416 224
   
  1,898 1,576
   
Total assets  4,329 3,326
   
Liabilities
Current liabilities
Trade and other payables 22 1,450 1,093
   
  1,450 1,093
   
Non-current liabilities
5% Convertible loan notes 34 137 —
Deferred tax liabilities 25 277 254
   
  414 254
   
Total liabilities  1,864 1,347
   
Net assets  2,465 1,979
   
Equity
Share capital 26 143 143
Share premium  2,910 2,910
Share-based payment reserve  352 208
Own shares held  (881) (949)
Retained earnings  (67) (333)
Other reserves  8 —
   
Total Equity  2,465 1,979
   
The financial statements on pages 22 to 56 were approved by the Board of Directors and authorised for issue on 3 May 2011 and 
are signed on its behalf by:
Elizabeth Gooch
Chief Executive Officer
Company Statement of Financial Position
as at 31 January 2011 25 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
  Year ended Year ended 
  31 January 31 January 
  2011 2010 
 Note £’000 £’000
Operating activities
Cash generated by operations 28 740 488
Income taxes received  74 240
   
Net cash generated by operating activities  814 728
   
Investing activities
Purchases of intangible assets  (646) (568)
Purchases of property, plant and equipment  (59) (19)
Proceeds from sale of property, plant and equipment  1 4
Exercise of option shares  3 2
Interest received  1 1
Net cash acquired with subsidiaries  1 —
Cash paid on acquisition of subsidiary  (33) —
   
Net cash used in investing activities  (732) (580)
   
Net increase in cash and cash equivalents  82 148
   
Cash and cash equivalents at beginning of year  410 262
Effect of foreign exchange rates  (5) —
   
Cash and cash equivalents at end of year  487 410
   
Consolidated Statement of Cash Flows
for the year ended 31 January 2011 Annual Report & Accounts 2011 www.eguk.co.uk 26 Our Accounts
20218.04  27/04/2011 Proof 7
  Year ended Year ended 
  31 January 31 January 
  2011 2010 
 Note £’000 £’000
Operating activities
Cash generated from operations 29 817 381
Income taxes received  74 240
   
Net cash generated from operating activities  891 621
   
Investing activities
Purchases of intangible assets  (646) (568)
Purchases of property, plant and equipment  (25) (18)
Proceeds from sales of property, plant and equipment  1 4
Exercise of option shares  3 2
Interest received  — 1
Net cash acquired with subsidiaries  1 —
Cash paid on acquisition of subsidiary  (33) —
   
Net cash used in investing activities  (699) (579)
   
Net increase in cash and cash equivalents  192 42
   
Cash and cash equivalents at beginning of year  224 182
   
Cash and cash equivalents at end of year  416 224
   
Company Statement of Cash Flows
for the year ended 31 January 2011 27 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
        Total
        amounts
        attributable
        to equity
   Share-     holders
   based Own    of the
 Share Share payment shares Retained Foreign Other  Parent
 capital premium reserve held earnings exchange reserves Company
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 February 2009  143 2,910 218 (1,000) (947) (18) — 1,306
Profit for the year — — — — 91 — — 91
Other comprehensive gains — — — — — 14 — 14
        
Total comprehensive income — — — — 91 14 — 105
        
Share-based payments — — 39 — — — — 39
Shares issued to employees — — (49) 51 — — — 2
        
Balance at 31 January 2010 143 2,910 208 (949) (856) (4) — 1,452
Profit for the year — — —  482 — — 482
Other comprehensive gains — — — — — 40 — 40
        
Total comprehensive income — — — — 482 40 — 522
        
Share-based payments — — 95 — — — — 95
Shares issued to employees — — — 68 (65) — — 3
Equity component of loan note — — — — — — 8 8
Prior year reserves transfer — — 49 — (49) — — —
        
Balance at 31 January 2011 143 2,910 352 (881) (488) 36 8 2,080
        
The share-based payment reserve is a reserve to recognise those amounts in retained earnings in respect of share-based 
payments.
The own shares held reserve shows movements in the shares held in trust by the eg solutions Employee Benefit Trust.
Retained earnings include the accumulated profits and losses arising from the consolidated statement of comprehensive income 
excluding foreign exchange differences.
The foreign exchange reserve comprises all exchange differences arising from the translation of the financial statements of 
overseas operations.
Other reserves represent the equity component of the convertible loan notes.
Consolidated Statement of Changes in Equity
  Annual Report & Accounts 2011 www.eguk.co.uk 28 Our Accounts
20218.04  27/04/2011 Proof 7
        Total
        amounts
        attributable
        to equity
    Share-    holders
    based Own   of the
  Share Share payment shares Retained Other  Parent
  capital premium reserve held earnings reserves Company
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 February 2009  143 2,910 218 (1,000) (477) — 1,794
Profit and total comprehensive 
income for the year  — — — — 144 — 144
Share-based payments  — — 39 — — — 39
Shares issued to employees  — — (49) 51 — — 2
       
Balance at 31 January 2010  143 2,910 208 (949) (333) — 1,979
Profit and total comprehensive 
income for the year  — — — — 380 — 380
Share-based payments  — — 95 — — — 95
Shares issued to employees  — — — 68 (65) — 3
Equity component of loan note  — — — — — 8 8
Prior year reserves transfer  — — 49 — (49) — —
       
Balance at 31 January 2011  143 2,910 352 (881) (67) 8 2,465
       
The share-based payment reserve is a reserve to recognise those amounts in retained earnings in respect of share-based 
payments.
The own shares held reserve shows movements in the shares held in trust by the eg solutions Employee Benefit Trust.
Retained earnings include the accumulated profits and losses arising from the Company statement of comprehensive income.
Other reserves represent the equity component of the convertible loan notes.
Company Statement of Changes in Equity
for the year ended 31 January 2011 29 eg solutions plc www.eguk.co.uk
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1. ACCOUNTING POLICIES
eg solutions plc is a public limited company incorporated in England, registered number 2211062, with its registered office 
at Barn 1, Dunston Business Village, Stafford Road, Dunston, Staffordshire, ST18 9AB.
The principal activities of the Group are the development and sale of software and consultancy in the back office 
optimisation market.
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 and going concern basis as discussed in the Director’s 
Report. The principal accounting policies adopted are set out below.
The Company made a profit after tax of £0.38m (2010: £0.14m) for the financial year. The Directors have taken advantage 
of the exemption available under section 408 of the Companies Act 2006 and have not presented a Statement of 
Comprehensive Income for the Company.
 Relevant Accounting Standards Issued and Effective
During the year the following relevant accounting standards have been issued and are effective but have not had a material 
impact on the Group:
y y IFRS 1 Revised IFRS 1 First time Adoption of IFRS
y y IFRS 3 Business Combinations – Comprehensive revision on applying the acquisition method
y y IAS 27 Consolidated and Separate Financial Statements – Amendments arising from IFRS 3
y y IAS 28 Investments in Associates – Consequential amendments arising from IFRS 3
y y IAS 31 Investments in Joint Ventures - Consequential amendments arising from IFRS 3
y y IAS 39 Financial Instruments: Recognition and Measurement – Amendment; Eligible hedged items
y y IFRS 1 First time Adoption of IFRS – Additional exemptions for first time adopters
y y IFRS 2 Share-based Payments – Amendment; Cash settled share-based payment transactions
y y IAS 32 Financial Instruments Presentation – Amendment, classification of rights issue
During the year the amendments have been made to the following accounting standards but have not had a material 
impact on the Group:
y y IFRIC 17 Distribution of Non Cash Assets to Owners
y y IFRIC 18 Transfers of Assets from Customers
y y IFRIC 19 Extinguishing financial liabilities with equity instruments
y y IFRIC 14 Amendment – Prepayments of a minimum funding requirement
y y IFRS 2 Share-based Payment
y y IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
y y IFRS 6 Exploration for and Evaluation of Mineral Resources
y y IFRS 8 Operating Segments
y y IAS 1 Presentation of Financial Statements
y y IAS 7 Statement of Cash Flows
y y IAS 17 Leases
y y IAS 18 Revenue
y y IAS 36 Impairment of Assets
y y IAS 38 Intangible Assets
Notes to the Group Financial Statements
for the year ended 31 January 2011 Annual Report & Accounts 2011 www.eguk.co.uk 30 Our Accounts
20218.04  27/04/2011 Proof 7
1. ACCOUNTING POLICIES continued
y y IAS 39 Financial Instruments
y y IFRIC 9 Reassessment of Embedded derivatives
y y IFRIC 16 Hedges of a Net Investment in a Foreign Operation
 Relevant Accounting Standards Issued but not yet effective
During the year the following relevant accounting standards have been issued but are not yet effective and are not 
expected to have a material impact on the Group:
y y IFRS 1 First Time Adoption of IFRS – Amendment; Limited exemption from comparative
y y IFRS 7 Disclosures for first-time adopters
y y IAS 24 Revised IAS24 Related Party Disclosures
y y IFRS 7 Financial Instruments: Disclosures – Amendments; Transfers of financial assets
y y IAS 12 Income taxes – Amendment; Deferred tax : Recovery of underlying asset
y y IFRS 9 Financial instruments
During the year the following improvements to accounting standards have been issued but are not yet effective and are not 
expected to have a material impact on the Group:
y y IFRS 1 First-time adoption of International Financial Reporting Standards
y y IFRS 3 Business combinations
y y IFRS 7 Financial instruments: Disclosures
y y IAS 1 Presentation of Financial Statements
y y IAS 27 Consolidated and separate Financial Statements
y y IAS 34 Interim Financial Reporting
y y IFRIC 13 Customer loyalty programmes
 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.
 Property, Plant and Equipment
Property, plant and equipment are stated at historical cost, net of depreciation and any provision for impairment.
Depreciation is provided on all property, plant and equipment 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
Leasehold Improvements — 20% straight line
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 31 eg solutions plc www.eguk.co.uk
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1. ACCOUNTING POLICIES continued
 Impairment of non-current assets
At each reporting date, the Group reviews the carrying amounts of its non-current 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 or that has not yet been brought into use is tested 
for impairment annually.
 Intangible 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 when all of the 
following conditions are met:
y y an asset is created that can be identified (such as software and new processes);
y y it is probable that the asset created will generate future economic benefits;
y y the development cost of the asset can be measured reliably;
y y the product or process is technically and commercially viable; and
y y 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). The 
amortisation is charged to cost of sales in the Statement of Comprehensive Income.
Intangible assets purchased as part of a business combination are recognised at their fair value at the acquisition date and 
amortised over the estimated life of the asset. These assets include intellectual property relating to the Nuqleus product set and 
customer relationships which eg would continue to benefit from. These are amortised over their useful economic lives (5 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 Statement of Comprehensive Income 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 at the reporting date.
 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 reporting date, monetary assets and liabilities that 
are denominated in foreign currencies are retranslated at the rates prevailing on the reporting date. Gains and losses 
arising on retranslation are included in the Statement of Comprehensive Income for the period.
On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates prevailing on 
the reporting 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 foreign exchange 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 reporting 
date of £1 = R11.4301. (2010: £1 = R12.2749). Annual Report & Accounts 2011 www.eguk.co.uk 32 Our Accounts
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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 
Statement of Comprehensive Income 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 reporting 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. 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 reporting date. Deferred tax is 
charged or credited in the Statement of Comprehensive Income, except when it relates to items credited or charged 
directly to equity, in which case the deferred tax is dealt with in equity.
 Trade Receivables
Trade receivables are recognised and carried at original invoice amount less provision for impairment.
A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be 
able to collect all amounts due according to the original terms of receivables. The amount of provision is recognised in the 
Statement of Comprehensive Income.
 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.
 Trade Payables
Trade payables are recognised and carried at original invoice amount.
 Share-based Payments
The Group has applied the requirements of IFRS 2 Share-based Payment. In accordance with the transitional provisions, IFRS 
2 has been applied to all grants of equity instruments after 7 November 2002 that 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.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 33 eg solutions plc www.eguk.co.uk
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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 Statement of Comprehensive Income on a straight-line basis over the period of the lease. The Group has no finance 
leases.
 Convertible Debt Instruments
Instruments where the holder has the option to redeem for cash or convert into a pre-determined quantity of equity 
instruments are classified as compound instruments and presented partly as a liability and partly as equity.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a 
similar non-convertible instrument. The difference between the proceeds of issue and the fair value assigned to the liability 
component, representing the embedded option to convert the liability into equity of the Group, is included in equity.
The interest expense on the liability component is calculated by applying the prevailing market interest rate for similar 
non-convertible debt to the instrument. The difference between this amount and the interest paid is added to the carrying 
value of the convertible loan note.
 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 judgements 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 intangible 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.  Intangible assets are also 
tested for impairment where an asset has an indefinite useful life or where it has not been brought into use. Recoverable 
amounts are based on a calculation of expected future cash flows, which includes management assumptions and estimates 
of future performance.
 Intangible Asset Valuations
The measurement of fair values on a business combination requires the recognition and measurement of the identifiable 
assets, liabilities and contingent liabilities. The key judgements involved are the identification of which intangible assets 
meet the recognition criteria as set out in IAS38, the fair values attributed to those intangible assets and the useful lives of 
individual intangible assets. The useful lives of intangible assets relating to customer relationships involves judgement as to 
customer retention rates applicable. Fair values are based on the calculation of expected future cash flows, which include 
management assumptions and estimates of future performance.
 Revenue Recognition
Revenue is recognised when revenue and associated costs can be measured reliably and future economic benefits are 
probable. Revenue is measured at the fair value of the consideration received or receivable, 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. Annual Report & Accounts 2011 www.eguk.co.uk 34 Our Accounts
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1. ACCOUNTING POLICIES continued
 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 of completion basis calculated 
pro rata on the number of man days completed to the estimated total project man days.
2. BUSINESS COmBINATIONS
 Acquisition of XTAQ Ltd
On 11 March 2010, the Group announced the acquisition of 100% of the share capital of XTAQ Limited, a developer and 
supplier of business performance measurement software and associated services.
The consideration paid by the Company for XTAQ comprised of £33,333 in cash and the balance by the issue of £142,560 
in 5% Convertible Unsecured Loan Notes 2012 (‟Loan Notes”). On the second anniversary of their issue the Loan Notes are 
repayable or convertible into New Ordinary Shares at a share price of 82.5p. The Company may require holders to convert 
if, for at least 20 consecutive business days, the average share price of an ordinary share in the Company shall be 82.5p. 
The Noteholder Majority shall have the right to serve a Conversion Notice on the Company (not less than 7 Business Days 
prior to the second anniversary of the creation and issue of the Notes) to convert all of the Notes outstanding into fully paid 
Ordinary Shares at a price of 82.5p per Share. No premises or property lease liabilities were acquired.
Following completion of the acquisition of XTAQ its employees were granted options to subscribe for an aggregate of up to 
1,393,938 new ordinary shares in the Company, at an exercise price of 55p, the closing mid-market price of an ordinary 
share in the Company on 10 March 2010, being the last business day prior to the acquisition. The number of options that 
may be exercised will depend, on a sliding scale, on the achievement of pre-determined XTAQ revenue performance in the 
12 months ending 31 March 2011 and are subject to a 4 year vesting period from the date of issue. The grant of these 
share options are not treated as part of the consideration.
Founded in 1993 XTAQ was a privately owned business based in Bristol employing eight people. The business had 
developed its Nuqleus business performance measurement software which it distributed with support services to deliver 
improved operational performance and effectiveness. Customers can deploy Nuqleus strategically throughout the enterprise 
or as a point solution to address particular operational management information requirements. XTAQ’s customers included 
Barclaycard, Citibank, GE Capital, Principality Building Society as well as a number of public sector clients.
In the year to 31 March 2009 XTAQ’s audited turnover was £0.55 million, on which it incurred a loss before tax of £0.15 
million. As at the same date XTAQ had a deficit on net assets of £0.05m.
The primary reason for acquisition was to acquire the intellectual property relating to the Nuqleus product set. Also 
acquired were a number of customer relationships which eg would expect to continue to benefit from.
The trade and net assets of XTAQ Ltd were hived up to the Parent Company on 1 June 2010.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 35 eg solutions plc www.eguk.co.uk
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2. BUSINESS COmBINATIONS continued
The book and fair values of XTAQ Ltd are shown below:
  Fair value
 Book value adjustments Fair value 
 of assets identified in of assets 
 acquired 2010/11 acquired
 £’000 £’000 £’000
Intellectual property — 498 498
Property, plant and equipment 7 — 7
Trade and other receivables 148 — 148
Corporation tax receivable 19 — 19
Cash and cash equivalents 1 — 1
Trade and other payables (115) — (115)
Deferred tax in respect of recognition of intangible assets — (134) (134)
Deferred revenue (239) — (239)
   
Net liabilities acquired (179) 364 185
Consideration 176 — 176
   
Excess of fair value over consideration 355 (364) (9)
   
The fair value adjustments relate to the valuation of XTAQ development assets and tax liabilities identified at acquisition. 
The fair value of trade payables and receivables is estimated to be in line with its book value and which reflects the gross 
contractual amounts recoverable.
XTAQ Limited contributed £1,088,000 to Group revenue for the period between the date of acquisition and the balance 
sheet date. If this acquisition had occurred on 1 February 2010 Group revenue would have been £1,109,000. As all trade 
and net assets were hived into the parent company on 1 June 2010 and synergy savings have since been made, it is 
impractical to disclose the profit XTAQ has contributed in a similar way.
3.  REvENUE
An analysis of the Group’s revenue is as follows:
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Continuing operations:
United Kingdom  3,946 3,799
South Africa  1,202 351
  
  5,148 4,150
  
4.  OPERATING SEGmENTS
eg solutions plc provides IT and software support services by operating two distinct companies in the United Kingdom 
(“EGUK”) and in South Africa (“EGSA”). Financial information is reported to the Board for both companies individually with 
revenue and operating profits split by geographical location. Segment revenue comprises of sales to external customers and 
excludes finance income. Segment profit reported to the Board represents the profit before tax earned by each segment.
For the purposes of assessing segment performance and for determining the allocation of resources between segments, the 
Board reviews the non-current assets attributable to each segment as well as the financial resources available. All assets 
and liabilities are allocated to reportable segments. Information is reported to the Board of Directors on a Company basis as 
management believe that each company exposes the Group to differing levels of risk and rewards due to local economic 
conditions. The segment profit or loss, segment assets and segment liabilities are measured on the same basis as amounts 
recognised in the financial statements, as set out in the accounting policies. Annual Report & Accounts 2011 www.eguk.co.uk 36 Our Accounts
20218.04  27/04/2011 Proof 7
4.  OPERATING SEGmENTS continued
Segment information about these companies is presented below.
 UK SA Group
 31.01.11 31.01.10 31.01.11 31.01.10 31.01.11 31.01.10
 £’000 £’000 £’000 £’000 £’000 £’000
Revenue
External revenue 3,946 3,799 1,202 351 5,148 4,150
Inter-segment revenue 668 145 42 61 — —
      
Total revenue 4,614 3,944 1,244 412 5,148 4,150
      
Finance charges (2) — — — (2) —
Finance income 1 1 — — 1 1
Profit/(loss) before tax 255 153 100 (69) 355 99
 UK SA Group
 31.01.11 31.01.10 31.01.11 31.01.10 31.01.11 31.01.10
 £’000 £’000 £’000 £’000 £’000 £’000
Other segment information
Total assets 3,512 3,326 541 304 4,053 2,875
Total liabilities (1,864) (1,347) (109) (832) (1,973) (1,423)
      
Net assets/(liabilities) 1,648 1,979 432 (528) 2,080 1,452
      
Capital expenditure
Property, plant and equipment 32 18 34 1 66 19
Intangible assets 646 568 — — 646 568
Depreciation 28 33 1 9 29 42
Amortisation 421 297 — — 421 297
Impairment of intangibles 46 — — — 46 —
      
During the year the Group had revenues from 3 customers amounting to £1,689,000 in total that individually made up more 
than 10% of revenues generated.
5.  PROFIT FROm OPERATIONS
This is stated after charging/(crediting):
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Net foreign exchange (gains)/losses  (10) 10
Impairment of intangible assets  46 —
Research and development costs expensed  546 520
(Profit)/loss on disposal of property, plant and equipment  (1) 1
Amortisation  421 297
Depreciation
— owned assets  29 42
Operating leases  198 216
  
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 37 eg solutions plc www.eguk.co.uk
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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.
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Audit of financial statements
 Baker Tilly  27 35
 Ernst & Young  — 9
  
  27 44
  
Other fees to Auditors
Local statutory audit for subsidiaries
 Baker Tilly (XTAQ subsidiary)  8 —
 Charles Orbach  4 8
Taxation services
 Baker Tilly  4 15
 Ernst & Young  — 19
Other services
 Baker Tilly  8 —
 Ernst & Young  — 12
  
  24 54
  
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
  2011 2010
  Number Number
Implementation and training services  14 13
Software Support and Development  17 16
Sales and Marketing  3 5
Management and Administration  9 4
  
  43 38
  
The aggregate remuneration for the above persons comprised:
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Wages and salaries  2,688 2,174
Social security costs  280 234
Share-based payment compensation  95 39
Post retirement benefits  155 145
  
  3,218 2,592
   Annual Report & Accounts 2011 www.eguk.co.uk 38 Our Accounts
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7.  STAFF COSTS AND DIRECTORS’ EmOLUmENTS continued
Directors’ emoluments
  2011 2010
  £’000 £’000
Emoluments  561 367
Money purchase pension contributions  28 28
  
Total  589 395
  
 Salary    Total Salary   Total
 and fees Benefits Other 2011 and fees Benefits Other 2010
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
RP Baker-Bates 30 — — 30 38 — — 38
EA Gooch 488 2 26 516 270 2 26 298
V Parylo
(resigned 20 March 2009) — — — — 14 — 2 16
A McRae 15 — — 15 15 — — 15
        
 533 2 26 561 337 2 28 367
        
The post retirement benefits payable by the Group in respect of each Director during the year were:
  2011 2010
  £’000 £’000
EA Gooch  28 26
V Parylo
(resigned 20 March 2009)  — 2
  
Total  28 28
  
Only one Director was accruing post retirement benefits under a money purchase scheme during the year.
 Key management
The key management of the Group consists of the eg solutions plc Board Directors.
The remuneration of Key Management is set out below. None of the eg solutions plc Board Directors hold any share options.
 Key management Compensation
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Wages and salaries  561 367
Social security costs  66 50
Post retirement benefits  28 28
  
  655 445
  
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 39 eg solutions plc www.eguk.co.uk
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8.  FINANCE CHARGES/INCOmE
 Finance Charges
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Interest on convertible loan notes  2 —
  
Finance Income
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Interest on bank deposits  1 1
  
9.  TAxATION
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Current tax:
United Kingdom  (12) (50)
Tax in respect of prior years  (4) 18
  
  (16) (32)
Deferred tax:
Origination and reversal of temporary differences  (100) 72
Tax in respect of prior years  (11) (32)
  
Tax attributable to the Group and its subsidiaries  (127) 8
  
Domestic income tax is calculated at 28% (2010: 28%) 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
  2011 2010
  £’000 £’000
The charge/(credit) for the year can be reconciled to the profit per 
the Statement of Comprehensive Income as follows:
Profit before tax  355 99
  
Tax at the domestic income tax rate 28% (2010: 28%)  99 28
Tax effects of expenses that are not deductible in determining taxable profit  86 21
Share-based payments  (106) —
Rate difference on deferred tax  (2) —
Research and development  (106) (42)
Losses surrendered for R&D tax credit  11 —
Recognition of previously unrecognised losses  (47) —
Prior year items  (15) (14)
Movement in unprovided deferred tax  (47) 15
  
Tax (credit)/charge  (127) 8
  
Effective tax rate for the year  (36%) 8% Annual Report & Accounts 2011 www.eguk.co.uk 40 Our Accounts
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10.  DIvIDENDS
In respect of the current year, the Directors propose that no dividend will be paid to shareholders (2010: £nil).
11.  EARNINGS PER ORDINARY SHARE
 From continuing operations
  Year ended  Year ended
  31 January 31 January
  2011 2010
Weighted average number of shares in issue 14,293,847 14,293,847
Weighted average number of shares held by the Employee Benefit Trust (1,112,415) (1,166,470)
  
Weighted average number of shares for calculating basic earnings per share 13,181,432 13,127,377
  
Weighted average number of shares for the purposes of basic earnings per share 13,181,432 13,127,377
Effect of dilutive potential ordinary shares
— Convertible loan notes 172,800 —
— Share options 357,395 1,166,470
  
Weighted average number of shares for the purposes of diluted earnings per share 13,711,627 14,293,847
  
  Year ended  Year ended
  31 January 31 January
  2011 2010
  £’000 £’000
Basic earnings attributable to equity shareholders 482 91
Effect of dilutive potential ordinary shares
— Interest on convertible loan notes 2 —
  
Earnings for the purposes of diluted earnings per share 484 91
  
  Year ended  Year ended
  31 January 31 January
  2011 2010
Basic earnings per share  3.7p 0.7p
Diluted earnings per share  3.5p 0.6p
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 27 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 and 5% Convertible Loan Notes.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 41 eg solutions plc www.eguk.co.uk
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12.  GROUP AND COmPANY — INTANGIBLE ASSETS
 
 Development Intellectual Total 
 costs property intangibles 
 £’000 £’000 £’000
Cost
At 1 February 2009 1,705 — 1,705
Acquisitions – internally developed 568 — 568
   
At 1 February 2010 2,273 — 2,273
Acquisitions – internally developed 646 — 646
Acquired through business combinations — 498 498
Disposals due to impairment (49) — (49)
   
At 31 January 2011 2,870 498 3,368
   
Amortisation and impairment
At 1 February 2009 271 — 271
Amortisation for the year 297 — 297
   
At 1 February 2010 568 — 568
Amortisation for the year 330 91 421
Disposals from impairment (3) — (3)
   
At 31 January 2011 895 91 986
   
Carrying amount
At 31 January 2011 1,975 407 2,382
   
At 31 January 2010 1,705 — 1,705
   
Amortisation and impairment have been included in cost of sales in the Consolidated Statement of Comprehensive Income.
Intangibles impaired during the year relate to software development on products that management have classified as not 
being part of the future software roadmap. Annual Report & Accounts 2011 www.eguk.co.uk 42 Our Accounts
20218.04  27/04/2011 Proof 7
13.  GROUP — PROPERTY, PLANT AND EqUIPmENT
 Computer 
 and office Fixtures and motor Leasehold 
 equipment fittings vehicles improvements Total
 £’000 £’000 £’000 £’000 £’000
Cost
At 1 February 2009 469 18 6 4 497
Additions 19 — — — 19
Disposals (4) — — — (4)
Translation differences 8 — — — 8
      
At 31 January 2010 492 18 6 4 520
Additions 26 33 — — 59
Acquired through business combinations 7 — — — 7
Disposals (1) — — — (1)
Translation differences 4 — — — 4
      
At 31 January 2011 528 51 6 4 589
      
Accumulated Depreciation
At 1 February 2009 412 5 6 — 423
Depreciation charge for the year 39 2 — 1 42
Disposals (2) — — — (2)
Translation differences 7 — — — 7
      
At 31 January 2010 456 7 6 1 470
Depreciation charge for the year 22 6 — 1 29
Disposals (1) — — — (1)
Translation differences 4 — — — 4
      
At 31 January 2011 481 13 6 2 502
      
Net book value
At 31 January 2011 47 38 — 2 87
At 31 January 2010 36 11 — 3 50
Depreciation has been included in administrative expenses in the Consolidated Statement of Comprehensive Income.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 43 eg solutions plc www.eguk.co.uk
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14.  COmPANY — PROPERTY, PLANT AND EqUIPmENT
 Computer 
 and office Fixtures and motor Leasehold 
 equipment fittings vehicles improvements Total
 £’000 £’000 £’000 £’000 £’000
Cost
At 1 February 2009 420 18 6 4 448
Additions 18 — — — 18
Disposals (4) — — — (4)
      
At 31 January 2010 434 18 6 4 462
Additions 24 1 — — 25
Acquired through business combinations 7 — — — 7
Disposals (1) — — — (1)
      
At 31 January 2011 464 19 6 4 493
      
Accumulated Depreciation
At 1 February 2009 374 5 6 — 385
Depreciation charge for the year 31 2 — 1 34
Disposals (2) — — — (2)
      
At 31 January 2010 403 7 6 1 417
Depreciation charge for the year 25 2 — 1 28
Disposals (1) — — — (1)
      
At 31 January 2011 427 9 6 2 444
      
Net book value
At 31 January 2011 37 10 — 2 49
At 31 January 2010 31 11 — 3 45
      
15.  SUBSIDIARIES
Details of the Group’s subsidiaries at 31 January 2011 are as follows:
 Place of Proportion Proportion
  incorporation of ownership of voting 
 (or registration) interest power held Principal
Name of subsidiary and operation % % activity
eg International Limited UK 100 100 Dormant
eg USA Inc USA 100 100 Dormant
eg solutions EBT Limited UK 100 100 Dormant
eg Operations Management (Pty) Limited South Africa 100 100 Consultancy  
    and Software
XTAQ Ltd UK 100 100 Dormant
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 Statement of Financial 
Position due to rounding. Annual Report & Accounts 2011 www.eguk.co.uk 44 Our Accounts
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16.  GROUP — TRADE AND OTHER RECEIvABLES
  2011 2010
  £’000 £’000
Trade receivables  456 346
Less provision for impairment  (14) —
  
Net trade receivables  442 346
Other receivables  11 6
Prepayments and accrued income  343 172
Director’s loan  272 118
  
  1,068 642
  
Ageing analysis of trade receivables past due but not impaired:
  2011 2010
  £’000 £’000
Up to 30 days overdue  — 2
31–90 days overdue  13 38
Over 91 days overdue  9 59
  
  22 99
  
An analysis of the provision for impairment of receivables is as follows:
  2011 2010
  £’000 £’000
At beginning of year  — 2
Charge for year  14 —
Utilised in year  — (2)
  
At end of year  14 —
  
17.  COmPANY — TRADE AND OTHER RECEIvABLES
  2011 2010
  £’000 £’000
Trade receivables  148 275
Less provision for impairment  — —
  
Net trade receivables  148 275
Prepayments and accrued income  216 134
Director’s loan  272 118
  
  636 527
  
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 45 eg solutions plc www.eguk.co.uk
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17.  COmPANY — TRADE AND OTHER RECEIvABLES continued
Ageing analysis of trade receivables past due but not impaired:
  2011 2010
  £’000 £’000
Up to 30 days overdue  — 2
31–90 days overdue  12 38
Over 91 days overdue  5 4
  
  17 44
   
An analysis of the provision for impairment of receivables is as follows:
  2011 2010
  £’000 £’000
At beginning of year  — 2
Charge for year  — —
Utilised in year  — (2)
  
At end of year  — —
   
18.  GROUP AND COmPANY — INvENTORIES
  2011 2010
  £’000 £’000
Consumables  18 18
   
19.  GROUP — CASH AND CASH EqUIvALENTS
  2011 2010
  £’000 £’000
Cash at bank and in hand  487 410
   
The Group has a £0.50m overdraft facility with The Co-operative Bank which expires on 16 March 2012. The overdraft 
attracts interest at 3.25% over the Bank’s published Base Rate.
20.  COmPANY — CASH AND CASH EqUIvALENTS
  2011 2010
  £’000 £’000
Cash at bank and in hand  416 224
    Annual Report & Accounts 2011 www.eguk.co.uk 46 Our Accounts
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21.  GROUP — TRADE AND OTHER PAYABLES
Trade and other payables are as follows:
  2011 2010
  £’000 £’000
Payments on account  336 71
Trade payables  272 303
Other tax and social security  309 176
Accruals and deferred income  642 619
  
  1,559 1,169
   
22.  COmPANY - TRADE AND OTHER PAYABLES
  2011 2010
  £’000 £’000
Payments on account  336 71
Trade payables  253 281
Other tax and social security  264 160
Accruals and deferred income  597 581
  
  1,450 1,093
   
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 rentals payable under non-cancellable operating leases are in aggregate as follows:
Amounts due:
  2011 2010
  £’000 £’000
Within one year  151 123
Between one and five years  203 312
  
  354 435
   
24. GROUP — DEFERRED TAx
  2011 2010
  £’000 £’000
Analysis for financial reporting purposes:
Deferred tax liabilities  643 477
Deferred tax assets  (366) (223)
  
Net position at 31 January  277 254
   
Unprovided deferred tax asset  82 179
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 47 eg solutions plc www.eguk.co.uk
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24. GROUP — DEFERRED TAx continued
The movement in the year in the Group’s net deferred tax position was as follows:
  2011 2010
  £’000 £’000
At 1 February  254 215
(Credit)/charge to income for the year  (100) 72
On acquisition of XTAQ Ltd  134 —
Adjustment in respect of prior year  (11) (33)
  
At 31 January  277 254
   
The following are the major deferred tax liabilities and assets recognised by the Group and the movements thereon during 
the year:
Deferred tax liabilities
 Accelerated
 tax Intellectual
 depreciation property Total
 £’000 £’000 £’000
At 1 February 2009 395 — 395
Charge to income for the year 76 — 76
Adjustment in respect of prior year 6 — 6
   
At 31 January 2010 477 — 477
Charge to income for the year 75 (26) 49
On acquisition of XTAQ Ltd — 134 134
Adjustment in respect of prior year (17) — (17)
   
At 31 January 2011 535 108 643
   
Deferred tax assets
 Property, 
 plant and Share-based
 equipment payments Tax losses Total
 £’000 £’000 £’000 £’000
At 1 February 2009 — (4) (176) (180)
Credit to income for the year 1 (5) — (4)
Adjustment in respect of prior year (8) — (31) (39)
    
At 31 January 2010 (7) (9) (207) (223)
Charge/(credit) to income for the year 4 (106) (47) (149)
Adjustment in respect of prior year — — 6 6
    
At 31 January 2011 (3) (115) (248) (366)
    
At the reporting date, the Group has unused UK tax losses of £915,000 (2010: £741,000) available for offset against future 
profits. A deferred tax asset of £248,000 (2010: £207,000) has been recognised in respect of such losses where realisation 
of the related tax benefit through future taxable profits is probable.
In addition the Group has overseas tax losses in South Africa of £452,000 (2010: £638,000), a deferred tax asset of £82,000 
(2010: £179,000) has not been recognised due to uncertainty of future profits. Annual Report & Accounts 2011 www.eguk.co.uk 48 Our Accounts
20218.04  27/04/2011 Proof 7
25.  COmPANY — DEFERRED TAx
  2011 2010
  £’000 £’000
Analysis for financial reporting purposes:
Deferred tax liabilities  643 477
Deferred tax assets  (366) (223)
  
Net position at 31 January  277 254
   
The movement in the year in the Company’s net deferred tax position was as follows:
  2011 2010
  £’000 £’000
At 1 February  254 215
Charge to income for the year  (100) 72
On acquisition of XTAQ Ltd  134 —
Adjustment in respect of prior year  (11) (33)
  
At 31 January  277 254
   
The following are the major deferred tax liabilities and assets recognised by the Company and the movements thereon 
during the year:
Deferred tax liabilities
 Accelerated
 tax Intellectual
 depreciation property Total
 £’000 £’000 £’000
At 1 February 2009 395 — 395
Charge to income for the year 76 — 76
Adjustment in respect of prior year 6 — 6
   
At 31 January 2010 477 — 477
Charge to income for the year 75 (26) 49
On acquisition of XTAQ Ltd — 134 134
Adjustment in respect of prior year (17) — (17)
   
At 31 January 2011 535 108 643
   
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 49 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
25.  COmPANY — DEFERRED TAx continued
Deferred tax assets
 Property, 
 plant and Share-based
 equipment payments Tax losses Total
 £’000 £’000 £’000 £’000
At 1 February 2009 — (4) (176) (180)
Charge to income for the year 1 (5) — (4)
Adjustment in respect of prior year (8) — (31) (39)
    
At 31 January 2010 (7) (9) (207) (223)
Charge/(credit) to income for the year 4 (106) (47) (149)
Adjustment in respect of prior year — — 6 6
    
At 31 January 2011 (3) (115) (248) (366)
    
At the reporting date, the Company has unused tax losses of £915,000 (2010: £741,000) available for offset against future 
profits. A deferred tax asset of £248,000 (2010: £207,000) has been recognised in respect of such losses where realisation 
of the related tax benefit through future taxable profits is probable.
26.  GROUP AND COmPANY SHARE CAPITAL
  2011 2010
  £’000 £’000
Authorised
50,000,000 ordinary shares of 1p each  500 500
   
  £’000 £’000
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 Company in either the 2011 or 2010 reporting periods.
The Company has one class of ordinary shares which carry no right to fixed income. During the year ended 31 January 
2011, the Group granted 1,460,938 share options (2010: 439,500) under the Group’s share option plan (Note 27). Annual Report & Accounts 2011 www.eguk.co.uk 50 Our Accounts
20218.04  27/04/2011 Proof 7
27.  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 4 years. If options remain unexercised after a period of 10 years from the date of grant, the 
options expire. A number of options also contain performance objectives within the vesting criteria.
Furthermore, options are forfeited if the employee leaves the Group before the options vest.
 2011 2010
  Weighted  Weighted  
  average exercise  average exercise 
 Options price (£) Options price (£)
Outstanding at 1 February 892,500 0.37 849,500 0.29
Granted during the year 1,460,938 0.54 439,500 0.18
Forfeited during the year (373,153) 0.48 (336,500) 0.36
Exercised during the year (80,000) 0.04 (60,000) 0.04
Expired during the year nil — nil —
    
Outstanding at 31 January 1,900,285 0.43 892,500 0.37
    
Exercisable at 31 January 98,000 0.04 160,000 0.04
    
The options outstanding at 31 January 2011 had an exercise price between 3.5 pence and 161.5 pence, and a weighted 
average remaining contractual life of 8.55 years (2010: 8.18 years).
The inputs into the Black–Scholes option pricing model are as follows:
   2011
Weighted average share price   £0.42
Weighted average exercise price   £0.46
Expected volatility   72%
Expected life   4 years
Risk-free rate   5.5%
Expected dividend yield   1.0%
Weighted average exercise price of options granted during the year   £0.54
  
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 1,036,470 ordinary shares of 1p, being 7.3% of the called up capital.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 51 eg solutions plc www.eguk.co.uk
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28.  RECONCILIATION OF GROUP PROFIT BEFORE TAx TO NET CASH GENERATED BY OPERATIONS
  2011 2010
  £’000 £’000
Profit before tax  355 99
Adjustments for:
Depreciation of property, plant & equipment  29 42
Profit on disposal of property, plant & equipment  (1) (1)
Amortisation of intangible assets  421 297
Impairment of intangible assets  46 —
Write off of the excess of fair value over consideration  (9) —
Finance income  (1) (1)
Finance costs  2 —
Share option charge  95 39
  
Operating cash flows before movements in working capital  937 475
Increase in receivables  (233) (91)
Increase in inventories  — (1)
Increase in payables  36 105
  
Cash generated by operations  740 488
   
29.  RECONCILIATION OF COmPANY PROFIT BEFORE TAx TO NET CASH GENERATED BY OPERATIONS
  2011 2010
  £’000 £’000
Profit before tax  255 151
Adjustments for:
Depreciation of property, plant & equipment  28 34
Profit on disposal of property, plant & equipment  (1) (2)
Amortisation of intangible assets  421 297
Impairment of intangible assets  46 —
Write off of the excess of fair value over consideration  (9) —
Finance income  — (1)
Finance costs  2 —
Share option charge  95 39
  
Operating cash flows before movements in working capital  837 518
Increase in receivables  (22) (233)
Increase in inventories  — (1)
Increase in payables  2 97
  
Cash generated by operations  817 381
   
30.  GROUP — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES
The main financial risks faced by the Group relate to the risk of default to financial transactions by customers, availability of 
funds to meet the Group’s needs and fluctuations in foreign exchange rates. These risks are managed as described below.
An explanation of the Group’s financial instrument risk management objectives and policies are set out in the Director’s 
Report on pages 16 to 19.
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 on the next page:
  Annual Report & Accounts 2011 www.eguk.co.uk 52 Our Accounts
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30.  GROUP — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES continued
 Liquidity Risk
Cash flow is managed on a daily, short-term and longer-term basis and management is therefore able to ensure that the 
Group has sufficient cash and facilities to meet all its commitments. The Group ensures that there is sufficient cash and 
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 the 16 March 2012.
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 and no breaches are foreseen over the next twelve 
months.
 market risk
Market risk includes foreign currency risk, price risk and interest rate risk.
Financial instruments affected by market risk are cash and cash equivalents. The following analysis, required by IFRS 7 
‘Financial Instruments: Disclosures’, is intended to illustrate the sensitivity to changes in market variables being UK interest 
rates and foreign exchange risk.
 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.
The impact on the Group’s financial instruments from foreign currency volatility is shown in the sensitivity below.
The sensitivity analysis has been prepared on the basis that the amount of net assets and the proportion of financial 
instruments in foreign currencies are all constant.
It should be noted that the sensitivity analysis reflects the impact on income and equity due to all financial instruments 
held at the reporting date. It does not reflect any change in revenue or costs that may result from changing interest or 
exchange rates.
The following assumptions were made in calculating the sensitivity analysis:
y y UK interest rates are forecast to increase by 1%
y y South African Rand will convert at 14 rand to the British Pound.
Using the above assumptions the following table shows the illustrative effect on the Group Statement of Comprehensive 
Income and equity that would result from changes in UK interest rates and in exchange rates:
 2011 2010
 Income Equity Income Equity  
 gain/(loss) gain/(loss) gain/(loss) gain/(loss)
 £’000 £’000 £’000 £’000
Assets:
1% increase in UK interest rates 4 — 4 —
    
South African Rand to GBP convert  
at 14 (2010: 14) — (79) — (12)
    
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 53 eg solutions plc www.eguk.co.uk
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30.  GROUP — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES continued
 Interest rate risk
Interest rate risk arises from cash and cash equivalents and is not considered to be a significant risk for the Group. The 
only interest bearing assets relate to cash and cash equivalents exposed to a floating interest rate. All other assets and 
liabilities are non interest bearing.
 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
Credit risk arises from cash and cash equivalents and trade and other receivables. 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 monies due after a sufficient period of time.
 Capital risk
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.
The following table is a comparison by category of the carrying amounts and the fair values of the Group’s financial 
instruments at 31 January 2011 and 31 January 2010.
 2011 2011 2010 2010
 Carrying Fair Carrying Fair
 value value value value
 £’000 £’000 £’000 £’000
Loans and receivables:
Cash and cash equivalents 487 487 410 410
Trade and other receivables 725 725 470 470
    
Total financial assets 1,212 1,212 880 880
    
Other financial liabilities
Trade payables 272 272 303 303
5% Convertible loan note 137 137 — —
    
Total financial liabilities 409 409 303 303
    
Net financial assets 803 803 577 577
    
  2011 2010
  £’000 £’000
Trade and other receivables:
Financial assets in the scope of IAS 39  725 470
Other assets  343 172
  
  1,068 642
    Annual Report & Accounts 2011 www.eguk.co.uk 54 Our Accounts
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30.  GROUP — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES continued
  2011 2010
  £’000 £’000
Trade and other payables:
Financial liabilities in the scope of IAS 39  272 303
Other liabilities  1,287 866
  
  1,559 1,169
   
The total financial assets included in the table above represent the maximum exposure to credit risk the Group faces.
The Group has not recognised impairment provisions against the trade receivables past due summarised on page 44 as 
they are considered to be recoverable based on previous trading history and there is no objective evidence that the 
amounts will not be collected.
The Group has £14,000 provided in respect of amounts for bad debts. (2010: £NIL)
The Directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectible.
 Fair value assumptions
The fair value of all financial instruments approximate to their carrying value.
Short-term deposits – the fair value of short-term deposits and overdrafts approximates to the carrying value because of 
the short maturity of these instruments.
31.  COmPANY — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES
 2011 2011 2010 2010
 Carrying Fair Carrying Fair
 value value value value
 £’000 £’000 £’000 £’000
Loans and receivables:
Cash and cash equivalents 416 416 224 224
Trade and other receivables 420 420 393 393
    
Total financial assets 836 836 617 617
    
Other financial liabilities
Trade and other payables 253 253 281 281
5% Convertible loan notes 137 137 — —
    
Total financial liabilities 390 390 281 281
    
Net financial assets 446 446 336 336
    
  2011 2010
Trade and other receivables:  £’000 £’000
Financial assets in the scope of IAS 39   420 393
Other assets   216 134
  
   636 527
   
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 55 eg solutions plc www.eguk.co.uk
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31.  COmPANY — FINANCIAL INSTRUmENTS AND RELATED DISCLOSURES continued
  2011 2010
Trade and other payables:  £’000 £’000
Financial liabilities in the scope of IAS 39  253 281
Other liabilities  1,197 812
  
  1,450 1,093
   
The total financial assets included in the table above represent the maximum exposure to credit risk the Company faces.
The Company has not recognised impairment provisions against the trade receivables past due summarised on page 45 as 
they are considered to be recoverable based on previous trading history and there is no objective evidence that the 
amounts will not be collected.
The Company has not provided any amount for bad debts (2010: Nil).
The Directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectible.
 Fair value assumptions
The fair value of all financial instruments approximate to their carrying value.
Short-term deposits and borrowings – the fair value of short-term deposits, loans and overdrafts approximates to the 
carrying value because of the short maturity of these instruments.
32.  POST EmPLOYmENT BENEFITS
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 Statement of Comprehensive Income in the period that they arise. The 
contributions to the scheme for the period amounted to £155,000 (2010: £145,000) representing 3%-10% of pensionable 
salaries. The amounts outstanding at the year end were £13,000 (2010: £15,000)
33.  RELATED PARTY TRANSACTIONS
A Director’s loan of £272,000 (2010: £118,000) was due from EA Gooch at 31 January 2011. The loan is interest free with 
no specific repayment terms and the maximum amount outstanding during the year was £272,000 (2010: £118,000). 
During May 2011 EA Gooch will sell shares to the eg solutions Employee Benefit Trust which fulfils a need within the trust 
for oversubscribed share options. EA Gooch has agreed that these proceeds will be used to repay in full the Director’s loan 
outstanding.
In the ordinary course of business, sales and purchases of services take place between EGUK and EGSA. Sales of software, 
consultancy and management services from EGUK to EGSA totalled £668,000 (2010: £145,000). Sales of software services 
from EGSA to EGUK totalled £42,000 (2010: £61,000). All transactions are recorded on an intercompany account.
At 31 January 2011 EGUK had a balance receivable from EGSA of £817,000 (2010: £757,000). This inter company balance 
is interest free and has no fixed repayment date.
EA Gooch is the ultimate controlling party. Annual Report & Accounts 2011 www.eguk.co.uk 56 Our Accounts
20218.04  27/04/2011 Proof 7
34. CONvERTIBLE LOAN NOTES
5% Convertible loan notes were issued at par on 5 October 2010 for £142,560.
On the second anniversary of their issue the Loan Notes are repayable or convertible into New Ordinary Shares at a share 
price of 82.5p. The Company may require holders to convert if, for at least 20 consecutive business days, the average share 
price of an ordinary share in the Company shall be 82.5p. The Noteholder Majority shall have the right to serve a Conversion 
Notice on the Company (not less than 7 Business Days prior to the second anniversary of the creation and issue of the 
Notes) to convert all of the Notes outstanding into fully paid Ordinary Shares at a price of 82.5p per Share.
If the notes are not converted they will be redeemed on the redemption date at par.
These instruments have been treated as compound financial instruments with the net proceeds received from the issue 
being split between the liability and equity. The equity component represents the fair value of the embedded option to 
convert the liability into equity of the Group.
   £’000
Nominal value of convertible loan notes issued   143
Fair value of equity component   (8)
  
Liability component at date of issue   135
Interest accrued   2
  
Liability component at 31 January 2011   137
  
The Directors estimate the fair value of the convertible loan notes to be approximately £143,000 (2010: £NIL).
The Directors estimate the fair value of the liability element to be approximately £137,000 (2010: £NIL) based on the 
present value of future cash flows discounted at 8%.
Notes to the Group Financial Statements continued
for the year ended 31 January 2011 57 eg solutions plc www.eguk.co.uk
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20218.04  27/04/2011 Proof 7
To the holders of ordinary shares
Notice is hereby given that the annual general meeting of the Company will be held at 2nd Floor, 22 Soho Square, London, 
W1D 4NS on Wednesday 8 June 2011 at 10.30am, to consider and if thought fit, approve the following resolutions:
As Ordinary business
1. That the Directors’ Report and the annual report and accounts for the year ended 31 January 2011 be adopted and 
approved.
2. That the Directors’ Remuneration for the year ended 31 January 2011 be approved.
3. That Baker Tilly UK Audit LLP be reappointed as Auditors 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 549, 551 and 559 of the Companies Act 2006 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 549(1)-(3), 551(1) and 559 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 resolutions
5.  That the Directors of the Company be empowered pursuant to Section 570 to 573 of the Companies Act 2006 to allot for 
cash equity securities (as defined for the purposes of Section 560 to 568 and 570 to 577 of the said Act) as if Section 
561(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 693(1) and 701 of the Companies Act 2006, 
to make market purchases (as defined in Section 693 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.
7.  Appointment of Phil Lee as a Director.
By order of the Board
Secretary
3 May 2011
Notice of meeting Annual Report & Accounts 2011 www.eguk.co.uk 58 Our Accounts
20218.04  27/04/2011 Proof 7
Shareholder Notes 59 eg solutions plc www.eguk.co.uk
Our Business Our Governance Our Accounts
20218.04  27/04/2011 Proof 7 Annual Report & Accounts 2011 www.eguk.co.uk 60 Our Accounts
20218.04  27/04/2011 Proof 7
Shareholder Notes 20218.04  27/04/2011 Proof 7
intelligent operations management
intelligent operations management
eg solutions plc 
Barn 1,
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