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intelligent operations management
intelligent operations management
eg solutions plc 
Dunston Business Village,  
Stafford Road, Dunston, Stafford,  
Staffordshire, ST18 9AB, UK
t : +44 (0) 1785 715772 
f: +44 (0) 1785 712541
ask@eguk.co.uk 
www. eguk. co. uk
Intelligent
Operations Management
intelligent operations management
intelligent operations management
eg solutions plc
Annual Report and Accounts 
for the year ended 31 January 2010
Stock exchange code: EGS 17603	 21/04/2010	 Proof	6 17603	 21/04/2010	 Proof	6 Highlights	 2
eg	at	a	Glance	 4
Our	Customers	 6
Chairman’ s	Statement	 8
Chief	Ex ecutiv e	Of ficer ’ s	Statement	 9
B oar d	of	Dir ectors	 12
Advisers	 13
Corpor ate	S ocial	R esponsibili t y	 14
Dir ectors’	R eport	 16
Dir ectors’	R esponsibili ties	in	the	pr epar ation 	
of	the	financial	statements	 20
I ndependent	A udi tors’	R eport 	
to	the	members	of	eg	solutions	plc	 21
Consolidated	Statement	of	Compr ehensiv e	I ncome	 22
Consolidated	Statement	of	Financial	P osi tion	 23
Compan y	Statement	of	Financial	P osi tion	 24
Consolidated	Statement	of	Cash	Flows	 25
Compan y	Statement	of	Cash	Flows	 26
Consolidated	Statement	of	Changes	in	Equi t y	 27
Compan y	Statement	of	Changes	in	Equi t y	 28
Notes	to	the	Gr oup	Financial	Statements	 29
Notice	of	Meeting	 53
Shar eholder	Notes	 54
F orm	of	Pr o xy	 55
Contents 17603	 27/04/2010	 Proof	7
Highlights
user s	 of	eg	softw ar e	worldwi de	
intelligent operations management
intelligent operations management
Where we operate
 eg of fi ces
 eg operational	
	 intelligence®	 users
W e	 gu ar antee	 i mpr o v ements	 i n	oper ati onal	 r esul ts	
i n	 short	ti mescal es.	 O n	a v er age,	each	customer	
wil l 	 sa v e	between	 20%	 and	 50%.
what	 we	 do
eg solutions	plc	is	a	leading	back	of fice	optimisation	softw ar e	compan y	that	
special ises	in	oper ations	management	solutions	—	del iv ering	guar anteed	
impr o v ements	in	oper ational	perf ormance	and	bot tom	line	r esul ts.
The	Compan y	curr ently	has	mor e	than	41,000	users	of	the	eg operational 
intelligence
®
	softw ar e	sui te	acr oss	blue-chip	companies	thr oughout	the	world.	
Nordics
UK
The Netherlands
Switzerland
Dubai
Bahrain
Qatar
South Africa
India
Hong Kong
Taiwan
Singapore
41 , 000 3 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Financial Highlights
>	R ev enue	 i ncr eased	 13%	 to	£4 .2m	 (2009: 	 £3. 7m)
>	Pr e-tax	 pr ofi t	 of	£0.1m	 (2009: 	 l oss	 of	£0.8m)
>	P osi ti v e	 cash	gener ati on	 wi th	 net	cash	at	y ear	end	 of	
£0.4m	 (2009: 	 £0.3m)
>	Costs	f urther	r educed	b y	 £0.4m	 (9%)	 on	 pri or	 y ear
Operational Highlights
>	New	 contr act	 wi ns	i nclude	 Nati on wi de	 B uildi ng	
S oci et y ,	 Legal 	 &	 Gener al ,	 one	 of	the	l ar gest	Nor di c	
bancassur ance	 gr oups	 and	 the	heal thcar e	 divi si on	of	
one	 of	S outh	 Af ri ca’ s	 l eadi ng	fi nanci al	 servi ces	 gr oups
>	A w ar ds	won:
—	T echnol ogy	v endor	wi th	 the	‘Most	 I nno v ati v e	
Fi nancial 	 S ervi ces	 S olution’	 at	the	pr esti gi ous	 IFS	
Fi nancial 	 I nno v ati on	 A w ar ds	 2009; 	 and
—	Hi ghl y	commended	 i n	the	‘B est	 Added	 V al ue	
Pr oject ’	 category	 of	the	ICT	 Ex cel l ence	 A w ar ds
>	P ost	 y ear -end,	 announced	 acqui si ti on	 of	XT AQ 	 f or	 up	
to	 £0.23m	 addi ng	 blue-chi p	 customer	 base,	
compl ementary	pr oducts	 wi th	 an	 encour agi ng	 sal es	
pipeline
R ev enue
+13 %
to	 £4 .2m
(2009: 	 £3. 7m)
Li cences,	 servi ces	
&	 maintenance	
+4 %
70%	 of	r ev enue
(2009: 	 66%)
60
50
40
30
20
May 09 J ul S ep No v Jan 10 M ar
Share Price (p) Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 4
17603	 27/04/2010	 Proof	7
22
y ears	of	
oper ational	management	experience
eg at a Glance
eg	is	the	only	back	of fice	optimisation	softw ar e	
compan y	that	guar antees	r eturn	on	in v estment	
and	is	paid	based	on	the	r esul ts	del iv er ed	
—	implementations	wi l l	pa y	f or	themselv es,	
t ypical ly	wi thin	six	months.
> 	 T ried,	tested 	and	pr o v en	op er ational	
intel ligence	solutions	that	del iv er	dr amatic	
impr o v ements	in	ef ficiency
> 	 O p t i m i s i n g 	 b a c k 	 o f f i c e 	 p e r f o r m a n c e 	 w i t h	
o p e r a t i o n s 	 m a n a g e m e n t 	 s o f t w a r e 	 & 	 s o l u t i o n s
> 	 Ov er	22	y ears	of	oper ation s	management	
experience
> 	 I nter nationa l	blue-chip	cl ient	base
> 	 41,00 0+	use rs	acr oss	Eur ope,	Middle	East,	
Af rica	and	Asia
> 	 Of fice s	in	th e	UK	and	South	Af rica
> 	 Guar anteed	benefi t	r eal isation	pr ogr ammes
> 	 R apid 	ROI	– 	2:1	ROI	in	six 	months
> 	 100% 	of	customers	would	 r ecommend	
eg	to	others
“The	implementation	of	eg’ s	softw ar e	and	
methodology	has	enabled	Legal	&	Gener al	
to	impr o v e	ef ficiency	and	perf ormance,	
which	we	bel iev e	wi l l	ha v e	a	r eal ly	positiv e	
impact	on	Legal	&	Gener al’ s	f utur e	suc cess.	 	
Wi th	eg’ s	help	we	ha v e	achiev ed	the	
pr oject ’ s	original	objectiv es	and	mor e. ”
Our credentials 5 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Nuqleus 3D enables the 
automated capture of every 
activity and interaction staff 
have with a system, process or 
customer, in real-time.
1
Nuqleus 3D
eg work manager
®
 provides full 
operations management capability for 
the back ofﬁce. It allows you to effectively 
plan, allocate and monitor work intra-day 
to achieve optimum customer service and 
quality at lowest cost. 
eg operational intelligence
®
 provides detailed 
multi-level operational MI through reports and 
dashboards. Operational intelligence is presented 
to those who need to analyse performance 
across processes, functions and teams, delivering 
accurate capacity plans and forecasts for 
managing back ofﬁce performance.
The eg principles of operational management
®
 is a training and development programme for Managers and Team Leaders to deliver 
consistency in management of work, resources and performance across the business. It offers a structured approach to improving 
management within back ofﬁce functions based on tried, tested and proven methodologies from industry, including capacity planning, 
short interval scheduling and line balancing. Complemented with professional implementation, technical and support services, 
eg implements operational intelligence within your business with guaranteed results.
2 eg work manager
®
3 eg operational intelligence
®
4 eg principles of operational management
®
“The	cost	sa vings	made	
possible	b y	eg	wer e	
consider able.	eg	pr omised	
to	deliv er	cost	benefi ts	of	at	
least	20%	—	the	actual	cost	
benefi t	w as	29%. ” Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 6
17603	 27/04/2010	 Proof	7
we’r e	commi t ted
to	our	customers
How we make the Difference
Overview The Challenge
R esolution	is	a	South	Af rican	based	financial	services	
pr o vider	which	of f ers	a	r ange	of	health,	li f e	and	
short -term	insur ance.	R esolution	Heal th	is	r esponsible	
f or	the	administr ation	of	the	R esolution	Heal th	
Medical	scheme	and	oper ates	in	a	highly	r egulated	
and	competi tiv e	industry	wher e	pr essur es	on	
r educing	administr ativ e	costs	ar e	immense.	The	k ey	
objectiv es	wer e	to	impr o v e	oper ational	management	
capabili t y ,	r educe	costs	and	manage	teams	in	a	mor e	
consistent	w a y .
I n	or der	to	achiev e	the	k ey	objectiv es,	i t	speci fical ly	
r equir ed	oper ational	management	pr actices	which	
could	help	to	measur e,	monitor	and	impr o v e.	Ther e	
w as	a	r equir ement	f or	consistent	r eal-time	r eporting	
as	the	existing	systems	pr o vided	a	r etr ospectiv e	
analysis	of	input	and	data	which	often	pr o v ed	to	be	
unr el iable.	The	implementation	and	use	of	eg’ s	
oper ational	management	tools	and	softw ar e	pr o vided	
r eal-time	data	which	w as	used	f or	perf ormance	
management	and	r eporting.
Overview The Challenge
Nation wide	R egional	B r ands	comprising	of	the	
Cheshir e,	Derb yshir e	and	Dunf erml ine	implemented	
the	eg operational intelligence® 	softw ar e	sui te	
and	the	eg principles of operational 
management® 	acr oss	i ts	oper ations	and	customer	
contact	f unctions.	
The	pr oject ’ s	main	objectiv e	w as	to	achiev e	
consistency	in	al l	ar eas	of	pr ocessing	and	customer	
contact	oper ations	to	enable	ef f ectiv e	f or ecasting	and	
r esour ce	planning	and	to	achiev e	service	and	
perf ormance	impr o v ements.	
Pr e-mer ger	the	br ands	had	ev olv ed	using	v ery	di f f er ent	
working	pr actices	and	cul tur es.	
N a t i o n w i d e 	 w a n t e d 	 t o 	 d e l i v e r 	 b a l a n c e d 	 s u c c e s s 	 i n 	 t e r m s 	 o f	
i n c r e a s e d 	 c a p a c i t y , 	 c u s t o m e r 	 s e r v i c e 	 e n h a n c e m e n t s 	 a n d	
e n s u r i n g 	 t h a t 	 s t a f f 	 w e r e 	 d e v e l o p e d 	 t o 	 b e 	 t h e 	 v e r y 	 b e s t	
t h e y 	 c o u l d 	 b e .	



 7 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
eg’ s	softw ar e	pr o vides	
historic,	r eal-time	and	
pr edictiv e	Management	
I nf ormation	.	.	.	intel ligent	
oper ations	management.
Our Clients include:
>	 A e g o n
>	 A v i v a
>	 A v i v a 	 J V 	 O p e r a t i o n
>	 C a p i t a
>	 C a p s t o n e 	 M o r t g a g e 	 S e r v i c e s 	 L t d
>	 C o m p u t e r 	 P a t e n t 	 A n n u i t i e s
>	 C o - o p e r a t i v e 	 F i n a n c i a l 	 S e r v i c e s
>	 F i r s t 	 P l u s 	 F i n a n c i a l 	 S e r v i c e s
>	 H B O S 	 F i n a n c i a l 	 S e r v i c e s
>	 I n t e l l i g e n t 	 F i n a n c e
>	 L e g a l 	 & 	 G e n e r a l
>	 L i b e r t y 	 L i f e , 	 S o u t h 	 A f r i c a
>	 N a t i o n w i d e 	 B u i l d i n g 	 S o c i e t y
>	 N a t i o n w i d e 	 R e g i o n a l 	 B r a n d s
>	 R e s o l u t i o n , 	 S o u t h 	 A f r i c a
>	 S t a n d a r d 	 B a n k , 	 S o u t h 	 A f r i c a
>	 T h e 	 C o - o p e r a t i v e 	 G r o u p
>	 U I S L
>	 V i t a l 	 I n s u r a n c e
>	 W e s l e y a n 	 A s s u r a n c e
>	 W e s t 	 B r o m w i c h 	 B u i l d i n g 	 S o c i e t y
>	 Z u r i c h 	 ( C a p i t a )
>	 Z u r i c h 	 I n t e r n a t i o n a l 	 L i f e
Results
T h e 	 i n t r o d u c t i o n 	 o f 	eg ’ s 	 s o f t w a r e 	 a n d 	 m e t h o d o l o g y	
d e l i v e r e d 	 s u b s t a n t i a l 	 b e n e f i t s . 	eg 	 g u a r a n t e e d 	 c o s t	
s a v i n g s 	 o f 	 2 0 % 	 b u t 	 i d e n t i f i e d 	 2 6 % . 	 T h i s 	 w a s 	 a c h i e v e d	
t h r o u g h 	 i n c r e a s e d 	 p r o d u c t i v i t y 	 a n d 	 w o r k 	 t h r o u g h p u t 	 w i t h	
r e d u c e d 	 s t a f f 	 n u m b e r s . 	 W i t h i n 	 t h e 	 C l a i m s 	 d e p a r t m e n t	
r e s u l t s 	 i n c l u d e d 	 i n c r e a s e d 	 p r o d u c t i v i t y 	 o f 	 a l l 	 c l a i m s 	 t a s k s ,	
i m p l e m e n t a t i o n 	 o f 	 q u a l i t y 	 c o n t r o l 	 m e a s u r e s 	 a n d	
c o m p r e h e n s i v e 	 a n d 	 a c c u r a t e 	 s t a t i s t i c a l 	 r e p o r t i n g 	 a n d	
o p e r a t i o n a l 	 i n t e l l i g e n c e . 	 S e r v i c e 	 s t a n d a r d 	 r e p o r t i n g 	 i s 	 i n	
p l a c e , 	 b a c k l o g s 	 h a v e 	 b e e n 	 e l i m i n a t e d 	 a n d 	 i m p r o v e m e n t s	
m a d e 	 i n 	 r e d u c i n g 	 e n d - t o - e n d 	 t u r n a r o u n d 	 t i m e s .
Results
The	eg operational intelligence
®
	softw ar e	sui te	
now	pr o vides	a	r eal-time	view	of	thr oughput	and	
r esour ce	to	al low	f ormal ised	r esour ce	sharing	to	tak e	
place	alongside	the	dev elopment	of	skil ls	–	staf f	
ef f ectiv eness	is	up	b y	26%.
T h e 	 c u s t o m e r 	 e x p e r i e n c e 	 i s 	 i m p r o v e d 	 t h r o u g h 	 t h e	
i n t r o d u c t i o n 	 o f 	 c o n s i s t e n t 	 S L A s 	 a n d 	 t h e 	 t e a m s 	 n o w 	 w o r k	
t o 	 a n 	 a v e r a g e 	 o f 	 n e x t 	 d a y 	 p r o c e s s i n g .
T h e 	 r e s u l t 	 w a s 	 a n 	 o v e r a l l 	 b e n e f i t 	 r e a l i s a t i o n 	 o f 	 c i r c a 	 3 2 %	
a n d 	 t h e 	 w h o l e 	 b u s i n e s s 	 w o r k s 	 t o 	 o n e 	 c o n s i s t e n t	
o p e r a t i o n a l 	 f r a m e w o r k .

 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 8
17603	 27/04/2010	 Proof	7
Chairman’s Statement
Introduction
I	am	pleased	to	be	able	to	r eport	on	a	suc cessf ul	y ear	in	which	
the	business	has	been	stabi lised	and	a	sol id	f oundation	laid	f or	
f utur e	gr owth.	This	r epr esents	a	turn-r ound	f r om	the	pr evious	
y ear	when	the	Compan y ’ s	tr ading	w as	adv ersely	af f ected	b y	
the	deepening	global	financial	crisis,	especial ly	during	the	
second	half	of	the	y ear .	
Ha ving	work ed	our	w a y	thr ough	one	of	the	most	di f ficul t	
periods	f or	the	financial	services	sector ,	our	cor e	mark et,	the	
Compan y	has	r egained	its	poise;	ther e	has	been	a	good	flow	
of	new	contr act	wins	and	r ecently	we	wer e	pleased	to	
announce	the	acquisi tion	of	XT AQ	Limi ted	(“XT AQ”).
Results
The	y ear	to	31	January	2010	sa w	steady	perf ormance	
thr oughout	the	y ear	wi th	a	simi lar	r esul t	del iv er ed	in	both	the	
first	and	second	halv es	of	the	y ear ,	both	of	which	wer e	
pr ofi table	f ol lowing	the	r eduction	in	costs	implemented	in	both	
the	pr evious	y ear	and	the	y ear	under	r eview .	I n	comparing	
perf ormance	wi th	the	pr evious	y ear ,	after	a	“same	again”	first	
half ,	the	Compan y	achiev ed	a	turn-r ound	to	pr ofi t	in	the	
second	half	f r om	a	£0. 7m	loss	in	the	compar able	period	of	the	
prior	y ear .
T otal	r ev enue	w as	£4 .15m	(2009:	£3.67m)	and	the	pr ofi t	
bef or e	tax	w as	£0.10m	(2009:	loss	bef or e	tax	of	£0. 75m).	
B asic	earnings	per	shar e	w as	0. 7p	(2009:	loss	per	shar e	
of	5.5p).
Net	cash	at	the	y ear	end	w as	£0.41m	(2009:	£0.26m).
The	B oar d	wil l	not	be	r ecommending	a	dividend	f or	the	y ear	
ended	31	January	2010.	
Acquisition
F o l l o w i n g 	 t h e 	 y e a r 	 e n d , 	 w e 	 a n n o u n c e d 	 t h e 	 a c q u i s i t i o n 	 o f 	 X T A Q ,	
a 	 d e v e l o p e r 	 a n d 	 s u p p l i e r 	 o f 	 b u s i n e s s 	 p e r f o r m a n c e 	 m e a s u r e m e n t	
s o f t w a r e 	 a n d 	 a s s o c i a t e d 	 s e r v i c e s . 	 T h e 	 c o n s i d e r a t i o n 	 o f 	 u p 	 t o	
£ 2 3 3 , 3 3 3 	 p a y a b l e 	 b y 	 t h e 	 C o m p a n y 	 f o r 	 X T A Q 	 c o m p r i s e s 	 £ 3 3 , 3 3 3	
i n 	 c a s h 	 a n d 	 t h e 	 b a l a n c e 	 b y 	 t h e 	 i s s u e 	 o f 	 u p 	 t o 	 £ 1 5 0 , 0 0 0 	 i n 	 5 %	
C o n v e r t i b l e 	 U n s e c u r e d 	 L o a n 	 N o t e s 	 2 0 1 2 	 a n d 	 u p 	 t o 	 9 0 , 9 0 9 	 n e w	
o r d i n a r y 	 s h a r e s 	 o f 	 1 p 	 e a c h 	 i n 	 t h e 	 C o m p a n y . 	 T h e 	 t o t a l 	 m a x i m u m	
c o n s i d e r a t i o n 	 e q u a t e s 	 t o 	 t h e 	 a p p r o x i m a t e 	 l e v e l 	 o f 	 X T A Q ’ s	
c u r r e n t 	 c o n t r a c t e d 	 m a i n t e n a n c e 	 r e v e n u e s 	 f o r 	 t h e 	 1 2 	 m o n t h s	
e n d i n g 	 3 1 	 M a r c h 	 2 0 1 1 .
XT AQ	emplo ys	a	total	of	eight	people,	al l	of	whom	ar e	
expected	to	r emain	with	the	enlar ged	Gr oup	and	who	ar e	
being	incentivised	b y	the	a w ar d	of	options	to	subscribe	f or	
new	shar es	in	eg	at	the	mid-mark et	price	immediately	prior	to	
the	announcement	of	the	acquisition.	The	v esting	of	these	
options	is	l ink ed,	on	a	sl iding	scale,	to	the	achiev ement	of	
sales	tar gets	f or	XT AQ’ s	Nuqleus	softw ar e	pr oducts	and	r elated	
services.
XT AQ	r epr esents	an	ex cel lent	“bol t	on”	acquisition,	extending	
eg’ s	pr oduct	r ange	and	customer	base,	adding	to	our	
dev elopment	and	del iv ery	ski l ls	and	of f ering	potential	f or	
cr oss-sel ling	acr oss	the	enlar ged	customer	base.	Furthermor e,	
we	bel iev e	that	the	sales	pr ospects	f or	Nuqleus	wil l	be	
impr o v ed	b y	XT AQ	becoming	part	of	a	lar ger	compan y .
Further	detai ls	of	the	plans	f or	integr ating	XT AQ	into	eg	ar e	
pr o vided	in	the	Chief	Ex ecutiv e	Of ficer ’ s	Statement.
Current Trading and Outlook
I n	r ecent	months	new	or ders	signed	wi th	existing	customers	
ha v e	demonstr ated	eg’ s	abili t y	to	sel l	mor e	deeply	and	widely	
into	our	existing	customer	base.	W e	ha v e	started	this	y ear	
wi th	a	solid	or der	book	which,	together	with	contr acted	
r ecurring	r ev enues,	ac count	f or	o v er	50%	of	our	expected	
r ev enues	f or	the	y ear	(ex cluding	XT AQ)	as	at	toda y ’ s	date	
(2009:	51%).
The	acquisition	of	XT AQ	should	be	earnings	enhancing	in	the	
curr ent	y ear ,	based	on	contr acted	r ecurring	r ev enues	and	
expected	immediate	pr oduct	sales.	XT AQ	has	a	signi ficant	
sales	pipeline;	if	satisf actory	pr ogr ess	can	be	achiev ed	in	
con v erting	these	pr ospects	into	firm	or ders,	the	potential	f or	
the	enlar ged	Gr oup	is	good.
After	a	v ery	tough	thr ee	y ears,	eg	is	now	wel l	placed	to	
del iv er	gr owth	o v er	the	next	y ear	and	bey ond.
Rodney Baker-Bates
Non-ex ecutiv e	Chairman
23	Apri l	2010
Rodney Baker-Bates
Non-ex ecutiv e	Chairman 9 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Chief Executive Officer’s Statement
Introduction
The	past	y ear	has	seen	eg	get	back	onto	an	“ev en	k eel”	after	
the	di f ficul ties	of	the	pr evious	y ear	which	ar ose	f r om	the	
global	financial	crisis	and	deepened	r apidly	f r om	the	autumn	
of	2008	on w ar ds.	Our	f ocus	has	r emained	r esolutely	on	our	
cor e	business	of	dev eloping	and	del iv ering	back	of fice	
optimisation	softw ar e	and	associated	services	which	deliv er	
substantial	and	measur able	cost	sa vings	f or	our	customers.
Al though	contr act	decision	times	continue	to	be	length y ,	the	
financial	services	sector	is	now	seemingly	wi l ling	to	in v est	in	
pr ojects	f or	which	ther e	is	a	tangible	and	posi tiv e	r eturn.	W e	
ar e	pr oud	of	our	blue-chip	customer	base,	both	in	the	UK	and	
international ly .	W e	ha v e	demonstr ated	clearly	our	abi li t y	to	
dev elop	long-term	r elationships	capable	of	pr o viding	ongoing	
r ev enue	f r om	support	services,	addi tional	l icences	and	
implementation	services	—	in	ef f ect,	sel ling	mor e	deeply	and	
widely	into	our	existing	customer	base	—	as	wel l	as	pr ocuring	
new	customers.	Nation wide	is	an	ex cel lent	example:	eg	made	
i ts	first	l icence	sale	to	Nation wide’ s	Li f e	Assur ance	division	in	
2005;	this	w as	f ol lowed	b y	a	suc cession	of	addi tional	l icence	
sales	to	other	parts	of	the	business,	culminating	in	Nation wide	
buying	an	enterprise- wide	licence	in	December	2009.	W e	ha v e	
dev eloped	a	suc cessf ul	business	model	based	on	an	ini tial	sale	
to	pr o v e	the	concept	f ol lowed	b y	additional	r ol l-out	sales.	This	
has	been	achiev ed	wi th	a	number	of	other	existing	customers	
in	the	UK	and	international ly .
The	r ecent	acquisi tion	of	XT AQ	incr eases	the	Compan y ’ s	
customer	l ist	f r om	25	to	nearly	40	wi th	companies	such	as	
B ar cla y car d,	Citibank,	GE	Capi tal,	Principal i t y	B uilding	Societ y	
and	R o y al	B ank	of	S cotland	as	wel l	as	a	number	of	publ ic	
sector	cl ients.
Wi th	r enewed	confidence	and	a	mor e	stable	economic	
backdr op ,	eg	is	wel l	placed	to	r eturn	to	gr owth.
Business review
Cost	base
During	the	y ear	total	costs	wer e	r educed	b y	a	f urther	£0.4m	
on	the	prior	y ear	r epr esenting	a	9%	impr o v ement.	Costs	ha v e	
now	been	r educed	b y	o v er	£1.5m	per	annum	since	financial	
y ear	2007 .
Mark et	and	business	dev elopment
The	Compan y	started	the	y ear	wi th	a	str ong	pipel ine	of	
potential	sales.	B usiness	dev elopment	activi ties	achiev ed	a	
sol id	momentum	during	the	y ear	wi th	a	good	r ate	of	
con v erting	potential	sales	into	signed	contr acts.
The	combination	of	softw ar e	licences,	softw ar e	services	and	
maintenance	contributed	70%	of	r ev enue	f or	the	f ul l	y ear	
(2009:	66%)	wi th	the	balance	coming	f r om	implementation	
services.	Contr acted	r ecurring	r ev enues	contributed	36%	of	
r ev enue	during	the	y ear	(2009:	40%)	due	to	the	incr eased	
pr oportion	of	l icence	r ev enues.
New	contr act	wins	announced	during	the	y ear	under	r eview	
included	sev er al	f r om	Nation wide	B uilding	Societ y	(see	abo v e),	
two	addi tional	or ders	f r om	Legal	&	Gener al	(which	now	has	
o v er	2,000	named	users),	an	ini tial	and	a	f ol low -on	or der	f r om	
one	of	the	lar gest	Nor dic	bancassur ance	gr oups	and	an	ini tial	
or der	f r om	the	heal thcar e	division	of	one	of	S outh	Af rica’ s	
leading	financial	services	gr oups.
“Wi th	r enewed	confidence	
and	a	mor e	stable	economic	
backdr op ,	eg	is	wel l	placed	to	
r eturn	to	gr owth. ”
Elizabeth Gooch,
Chief	Ex ecutiv e	Of ficer
Elizabeth Gooch
Chief	Ex ecutiv e	Of ficer Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 10
17603	 27/04/2010	 Proof	7
Chief Executive Officer’s Statement 	continued
Pr oduct	dev elopment	and	support
I n v estment	in	capi tal ised	softw ar e	dev elopment	in	the	y ear	
w as	£0.6m	(2009:	£0.5m)	and	included	both	new	r eleases	of	
existing	pr oducts,	as	wel l	as	signi ficant	new	pr oduct	
dev elopments.
Dev elopment	to	existing	softw ar e	pr oducts	included:
	 > New	major	r eleases	of	eg work manager ®	v5.1	and	eg 
operational intelligence ®	 v2.1,	 impr o ving	 the	 ef ficiency	
of	the	k ey	daily	user	f unctions;
	 > Enhanced	custom	r eporting	wi th	a	new	r elease	of	eg 
operational intelligence ® data views .
Dev elopment	of	new	softw ar e	pr oducts	included:
	 > The	 impl ementation	 of	 a	 new	 web	 based	 e-learning	 system	
enabling	eg	to	of f er	customers	e-learning	based	tr aining	
ei ther	wi thin	a	customer ’ s	own	Learning	Management	
S ystems	or	o v er	the	internet;
	 > eg work manager ® de-sensitisation 	—	a	uti li t y	
pr oduct	that	enables	customers	to	conceal	sensi tiv e	
emplo y ee	and	customer	data	acr oss	eg	databases.	
This	pr oduct	enables	customers	to	enf or ce	incr easingly	
stringent	data	management	pol icies	and	data	pr otection	
legislativ e	r equir ements.
Acquisi tion	and	integr ation	of	XT AQ
The	acquisition	of	XT AQ	brings	together	two	companies	wi th	
complementary	pr oducts	and	customer	bases.	XT AQ’ s	Nuqleus	
3D	pr oduct	pr o vides	r eal-time	data	captur e	and	addi tional	
dashboar d	f unctionali t y	that	the	Compan y	had	been	planning	
to	dev elop	f or	i ts	own	pr oduct	r ange	during	2010.
The	combined	businesses’	activ e	cl ient	base	wil l	incr ease	to	
about	40	f r om	25,	pr o viding	incr eased	r ecurring	r ev enues	and	
opportuni ties	f or	cr oss-sel ling	in	both	dir ections	—	wi th	
particular	opportunities	f or	eg	to	start	sel ling	into	the	publ ic	
sector .	XT AQ	has	a	number	of	ex cel lent	sales	pr ospects	and	
we	bel iev e	that	ther e	wi l l	be	a	much	impr o v ed	pr ospect	of	
completing	these	sales	wi th	XT AQ	being	part	of	a	lar ger	and	
str onger	business.
I n 	 a d d i t i o n , 	 X T A Q ’ s 	 s a l e s , 	 d e v e l o p m e n t 	 a n d 	 i m p l e m e n t a t i o n 	 s t a f f	
w i l l 	 s t r e n g t h e n 	 t h e 	 C o m p a n y’ s 	 e x i s t i n g 	 t e a m 	 w i t h 	 a 	 n u m b e r 	 o f	
b u d g e t e d 	 n e w 	 p o s i t i o n s 	 n o w 	 b e i n g 	 f i l l e d 	 b y 	 X T A Q ’ s 	 s t a f f . 	 I n 	 t h i s	
w a y 	 t h e 	 e n l a r g e d 	 G r o u p 	 w i l l 	 b e n e f i t 	 f r o m 	 t h e 	 e c o n o m i e s 	 o f 	 s c a l e	
r e s u l t i n g 	 f r o m 	 t h e 	 m e r g e r 	 o f 	 t h e 	 t w o 	 companies.
“The	Compan y	started	the	
y ear	wi th	a	str ong	pipel ine	of	
potential	sales.	B usiness	
dev elopment	activi ties	
achiev ed	a	solid	momentum	
during	the	y ear	wi th	a	good	
r ate	of	con v erting	potential	
sales	into	signed	contr acts. ”
“The	acquisition	of	
XT AQ	brings	together	two	
companies	wi th	
complementary	pr oducts		
and	customer	bases. ” 11 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
The	integr ation	of	XT AQ	and	eg	is	alr eady	wel l	under	w a y .	As	
wi th	man y	smal l	IT	companies,	XT AQ	oper ated	f r om	“virtual	
pr emises”	—	no	of fice	or	lease	commi tments	wer e	inheri ted	as	
part	of	the	deal.	That	said,	eg’ s	of fices	and	customer	tr aining	
f aci li ties	wi l l	pr o vide	additional	f aci li ties	and	r eassur ance	to	
XT AQ’ s	existing	and	potential	customers.
As	independent	pr oducts,	ther e	is	a	close	fit	between	the	eg	
operational intelligence® 	softw ar e	sui te	and	XT AQ’ s	
Nuqleus	3D	pr oduct.	F or	some	time	the	Compan y ’ s	cl ients	
ha v e	been	r equesting	r eal-time	data	captur e	and	to	include	
data	f r om	other ,	non-oper ational,	sour ces	into	dashboar ds	and	
balanced	scor ecar ds.	These	r equests	can	be	f ulfi l led	
immediately	and	i t	is	our	intention	to	f ul ly	integr ate	the	
combined	eg/XT AQ	pr oduct	set	o v er	the	coming	months.
Priori ties	f or	the	f utur e
Ov er	the	past	y ear	we	ha v e	stabi lised	the	Compan y	and	bui l t	a	
sol id	base	f or	f utur e	gr owth.	The	acquisition	of	XT AQ	wi l l	help	
ac celer ate	our	r ate	of	pr oduct	dev elopment	and	has	expanded	
both	our	customer	base	and	the	teams	f ocusing	on	sales,	
del iv ery	and	dev elopment.
The	demand	f or	back	of fice	optimisation	has	incr eased	in	
r ecent	months	as	the	r ecession	has	f uel led	firms’	desir e	f or	
tighter	oper ational	contr ol.	This	demand	is	supported	b y	
r esear ch	carried	out	during	the	y ear	on	behal f	of	the	Compan y	
and	is	f urther	evidenced	b y	the	mo v e	b y	lar ge	W orkf or ce	
Management	v endors	to	the	back	of fice	mark etplace.	The	
lar ger	number	of	pla y ers	in	this	mark etplace	should	lead	to	
gr eater	a w ar eness	of	back	of fice	optimisation	solutions.
B oth	eg	and	XT AQ	ha v e	str ong	sales	pipel ines.	With	steadier	
mark et	condi tions	now	being	experienced,	a	str onger	pr oduct	
of f ering	and	evidence	of	incr eased	customer	demand,	we	ar e	
confident	that	a	base	f or	r enewed	gr owth	has	been	cr eated.
Elizabeth Gooch
Chief	Ex ecutiv e	Of ficer
23	Apri l	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 12
17603	 27/04/2010	 Proof	7
Board of Directors
Rodney Baker-Bates
Non-ex ecutiv e	Chairman
R odney ,	66,	is	a	Charter ed	Ac countant,	a	F el low	of	the	I nsti tute	
of	B ank ers,	and	I nsti tute	of	Management	Consultants.	A	f ormer	
Chief	Ex ecutiv e	of	Prudential	Financial	S ervices,	he	pr eviously	
work ed	in	senior	r oles	at	the	BB C,	Midland	B ank	and	Chase	
Manhat tan	B ank.	R odney	is	also	a	Dir ector	of	Co-oper ativ e	
Financial	Services	and	holds	a	number	of	Non-ex ecutiv e	r oles	
including	Stobart	Gr oup ,	Assur a	Gr oup	and	Hoar e’ s	B ank.
Elizabeth Gooch
Chief	Ex ecutiv e	Of ficer
Elizabeth	Gooch	started	her	car eer	in	the	1980s	as	an	in-house	
consul tant	at	F orw ar d	T rust,	a	subsidiary	of	Midland	Bank.	
She	then	mo v ed	to	B irmingham	Midshir es	bef or e	establ ishing	
eg	in	1988.	After	working	f or	some	manuf actur ers,	El izabeth	
intr oduced	their	pr oactiv e	management	of	pr ocessing	and	
oper ations	into	the	back	of fices	of	financial	services	businesses.	
B ased	on	this	experience,	El izabeth	designed	and	launched	the	
eg operational intelligence
®
	softw ar e	sui te.
T oda y ,	ha ving	suc cessf ul ly	implemented	eg’ s	Oper ational	
Management	solutions	in	lar ge	financial	services	companies	
such	as	HB OS ,	A viv a	and	Scot tish	Equitable,	Elizabeth	stands	
out	as	one	of	Staf f or dshir e’ s	r ar e	IT	entr epr eneurs	and	w as	
r ecognised	as	the	sev enth	leading	f emale	entr epr eneur	in	
Management	T oda y ’ s	top	100	entr epr eneurs	2006	and	2007 . 13 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Advisers
Andrew McRae
Non-ex ecutiv e	Dir ector
Andy	McR ae	has	mor e	than	20	y ears	of	international	business	
experience,	much	spent	wi thin	the	support	services	sector .	
Andy	is	a	qual i fied	UK	Charter ed	Ac countant	and,	as	wel l	as	
being	a	Non-ex ecutiv e	Dir ector	of	the	Compan y ,	is	acting	
Finance	Dir ector .
Andy	is	pr esently	Chief	Oper ating	Of ficer	f or	Heal thcar e	
Locums	Plc,	the	UK’ s	lar gest	Heal th	and	Social	Car e	r ecrui tment	
compan y .	Prior	to	assuming	senior	gener al	management	r oles,	
Andy	held	a	number	of	senior	financial	posi tions	in	the	UK	
public	compan y	ar ena.
Secretary
TL T	S ecr etaries	Limi ted
One	R edcl i f f e	Str eet
B ristol
BS1	6TP
Registered Office
Dunston	B usiness	Vil lage	
Staf f or d	R oad
Dunston
Staf f or d
Staf f or dshir e
ST18	9AB
Reporting Accountants and Auditors
B ak er	Ti l ly	UK	A udi t	LLP
F estiv al	W a y
Stok e	On	T r ent
Staf f or dshir e
ST1	5BB
Solicitors
TL T	S olici tors
S ea	Containers	House
20	Upper	Gr ound
B lackf riars	B ridge
London	
SE1	9LH	
Nominated Adviser and Broker
Arbuthnot	S ecuri ties	Limited
Arbuthnot	House
20	R opemak er	Str eet
London
EC2Y	9AR Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 14
17603	 27/04/2010	 Proof	7
Corporate Social Responsibility
eg	is	commit ted	to	managing	
i ts	business	in	a	socially	
r esponsible	manner .	
eg’ s	Corpor ate	S ocial	
R esponsibili t y	(CSR)	pol icy	has	
been	pr oduced	in	col labor ation	
wi th	emplo y ees	and	r eflects	the	
ar eas	the	Compan y	f eels	ar e	
most	closely	aligned	to	its	
business	oper ations.
Employees
eg’ s	intention	is	to	l isten	to	and	in v olv e	staf f	—	emplo y ee	
f eedback	is	an	important	w a y	of	ensuring	the	continuous	
impr o v ement	of	the	business	and	can	help	impr o v e	staf f	
satisf action.	Emplo y ees	ar e	f ul ly	supported	b y	the	Compan y	
should	they	choose	to	undertak e	f urther	study	and	tr aining.
Environment
Our	of fices	ar e	ener gy	ef ficient	of fices	and	in	uti lising	the	
latest	technology	we	ar e	endea v ouring	to	minimise	our	impact	
on	the	en vir onment.	It	is	Compan y	policy	that	al l	w aste	
materials	ar e	r ecy cled.	Wher ev er	possible	eg	uses	FSC -
certi fied	paper	pr oducts	and	sustainable	suppl iers.	W e	
intr oduced	ethical	external	Christmas	car ds	in	2008	and	a	
digital	car d	f or	emplo y ees	to	r educe	w aste.
Company charity
Due	to	i ts	in v olv ement	in	S outh	Af rica,	since	launching	a	
subsidiary	in	Johannesbur g	in	2007 ,	eg	has	chosen	the	
Doornk op	Needy	Chi ldr en’ s	Centr e	as	i ts	Compan y	chari t y .	The	
centr e	pr o vides	saf et y	and	shelter	f or	orphaned	or	f oster ed	
childr en	aged	1	to	5	y ears	old,	some	of	whom	ar e	HIV	
posi tiv e.	eg	supports	f undr aising	activities	wi th	staf f	and	
cl ients,	as	wel l	as	making	i ts	own	financial	contributions	to	the	
chari t y .	The	Compan y	or ganised	an	educational	outing	f or	the	
childr en	in	2009	and	has	pr o vided	items	f r om	a	“wish	l ist ”	of	
The	money	eg	has	donated	
and	r aised	helps	pr o vide	f ood,	
to ys,	clothes,	learning	materials,	
equipment	and	educational	outings	
f or	the	childr en.	It	is	clear	that	
their	heal th	has	impr o v ed	wi th	
the	r egular	f ood	suppl ied	thr ough	
our	sponsorship .	B ut	the	r eal	
di f f er ence	we	can	mak e	wi l l	come	
f r om	educating	these	chi ldr en	so	
they	can	change	their	own	l iv es	
when	they	ar e	older .
“It is so important that we continue 
our regular fundraising activities for 
the Centre to expand the facilities 
they have available and contribute 
towards the children’s education” 
Elizabeth Gooch,	 CEO ,	eg	sol uti ons 15 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
educational	items	using	some	of	the	f unds	r aised	to	expand	
the	f aci li ties	they	ha v e	a v ailable	and	contribute	tow ar ds	the	
childr en’ s	education.
South Africa
The	S outh	Af rican	go v ernment	has	intr oduced	a	
compr ehensiv e	system	to	help	integr ate	black	people	into	
societ y ,	post - apartheid,	and	ther ef or e	encour age	and	assist	
the	tr ansi tion	of	economic	empowerment.	Companies	
oper ating	in	S outh	Af rica	ha v e	to	achiev e	B r oad	B ased	B lack	
Economic	Empowerment	(BBBEE)	ac cr edi ted	status	in	support	
of	these	objectiv es.	B usinesses	ar e	classi fied	b y	their	siz e	and	
measur ed	in	terms	of	how	suc cessf ul ly	they	comply	with	a	
r ange	of	sev en	measur es.
W e	ar e	curr ently	ac cr edi ted	wi th	lev el	3	status	(out	of	10,	 	
1	is	the	highest	scor e).
eg operations 
management solutions (pty) 
limited
PO	B o x	785553
2nd	Floor ,	W est	T ower
Maude	Str eet
Nelson	Mandela	S quar e
Sandton	2146
Johannesbur g
S outh	Af rica
T el:	+27	(0)	11	881	5748
F ax:	+27	(0)	11	881	5611
ask@egsa.co.za 
www.egsa.co.za
“eg	ha v e	supported	me	in	
undertaking	softw ar e	tr aining	
to	achiev e	a	r ecognised	
quali fication	and	dev elop	m y	
ski l ls	in	the	testing	and	qual i t y	
assur ance	of	softw ar e.	It	is	
important	to	continual ly	
update	skil ls	and	obtain	
industry	r ecognised	
quali fications,	not	only	f or	m y	
own	personal	dev elopment,	
but	also	to	meet	the	needs	of	
m y	emplo y er	and	our	cl ients.	
eg	ha v e	pr o vided	the	support	
and	f unding	to	enable	me	to	
do	this. ”
Tina Kelly ,	S oftw ar e	Support	
&	Dev elopment
“the	eg	compan y	ethics,	staf f	mor ale	and	commi tment	
ar e	f antastic.	I	r eal ly	l ik e	the	ex cel lent	working	
en vir onment	wi th	pr of essional,	f riendly	people. ” Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 16
17603	 27/04/2010	 Proof	7
Directors’ Report
The	Dir ectors	submi t	their	r eport	and	the	financial	statements	
of	eg	solutions	plc	f or	the	y ear	ended	31	January	2010.
Principal Activities
The	principal	activi t y	of	the	Gr oup	is	that	of	an	IT	and	
softw ar e	support	services	business	deliv ering	guar anteed	
impr o v ements	in	oper ational	management.	The	Gr oup	uses	
pr oprietary	 softw ar e	 packages	 and 	 an	 oper ations	 management	
methodology	based	on	pr oduction	management	techniques.	
The	Gr oup	del iv ers	measur able	oper ational	impr o v ements	in	
lar ge	back	of fice	en vir onments.
FINANCIAL REVIEW
Overview
I n	the	y ear	ended	31	January	2010,	turno v er	w as	£4 .15m,	an	
incr ease	of	£0.48m	(2009:	£3.67m).	The	Gr oup	r eturned	to	
pr ofi t	during	the	y ear	pr oducing	a	pr ofi t	f r om	oper ations	of	
£0.10m	(2009:	loss	£0. 79m).
Revenue Analysis
R ev enue	earned	in	the	first	hal f	of	the	y ear	w as	£2.09m	
compar ed	wi th	£2.27m	in	the	same	period	f or	the	prior	y ear .	
The	Gr oup	pr oduced	a	pleasing	second	hal f	r esul t	wi th	
r ev enue	of	£2.06m,	a	47%	incr ease	on	2009	(£1.40m).
Profit/(loss) Before Taxation
The	Gr oup	r eturned	to	pr ofi t	during	the	financial	y ear	
pr oducing	a	pr ofi t	bef or e	taxation	of	£0.10m	(2009:	loss	
bef or e	taxation	£0. 75m).	
Taxation
The	Gr oup	has	benefited	f r om	the	f a v our able	tax	r el ief	giv en	
on	dev elopment	expendi tur e.	The	ef f ectiv e	r ate	of	taxation	
char ge	is	8%	(2009:	ef f ectiv e	r ate	of	tax	cr edi t	4%).
Earnings Per Share
Earnings	per	shar e	on	a	basic	and	f ul ly	di luted	basis	w as	0. 7p	
and	0.6p	r espectiv ely .	I n	the	prior	y ear	the	basic	loss	per	
shar e	w as	5.5p	and	on	a	f ul ly	di luted	basis	5.5p .
Dividend
The	tr ading	r esul ts	ar e	set	out	on	page	22.	The	Dir ectors	do	
not	r ecommend	the	pa yment	of	a	final	dividend	on	the	
or dinary	shar es	(2009:	£Ni l).
Research and Development & Capital Expenditure
The	Gr oup	spent	£0.99m	on	dir ect	staf f	and	contr actor	costs	
f or	r esear ch	and	dev elopment,	of	which	£0.47m	w as	
capi tal ised.	An	addi tional	£0.10m,	in	r elation	to	dir ect	costs,	
w as	also	capital ised.	I n	2009	the	Gr oup	expended	£1.12m	on	
dir ect	staf f	and	contr actor	costs	dev eloping	i ts	softw ar e	
pr oduct,	of	which	£0.42m	w as	capi tal ised.	An	addi tional	
£0.13m,	in	r elation	to	dir ect	costs,	w as	also	capital ised.	The	
expendi tur e	r elates	to	the	dev elopment	of	new	and	enhanced	
softw ar e	of f erings.	
Cash Flow
The	Gr oup	is	debt	f r ee	and	at	31	January	had	inter est -earning	
cash	balances	of	£0.41m	(2009:	£0.26m).	Cash	inflow	in	the	
y ear	w as	£0.15m	(2009:	outflow	£0.62m).	
Future Developments
The	Gr oup	has	embark ed	upon	a	gr owth	str ategy	which	wil l	
extend	i ts	activi ties	in	financial	services	into	other	new	UK	
mark et	sectors,	in	addi tion	to	dev eloping	i ts	activi ties	outside	
of	the	UK.	I n	addition,	the	Gr oup	is	planning	to	expand	upon	
i ts	entry	in	Northern	Eur ope	o v er	the	coming	period.
Key Performance Indicators
The	Gr oup’ s	pr ogr ess	on	i ts	str ategic	objectiv es	is	monitor ed	
b y	the	B oar d	of	Dir ectors	b y	r ef er ence	to	the	f ol lowing	k ey	
perf ormance	indicators.	The	mat ters	mentioned	in	the	
Chairman’ s	statement	ar e	a	r eflection	of	the	perf ormance	of	
the	business	set	out	in	the	table	below	along	wi th	compar ativ e	
prior	y ear	perf ormance	data.
    Note 2010 2009
R ev enue		 A	 £4,150,000 	 £3,666,000
%	Change	 B	 13.2% 	 (11.1%)
Gr oss	Mar gin	%	 C	 62.7% 	 50.6%
Pr ofi t/(loss)	f r om	oper ations	%	 D	 2.4% 	 (21.6%)
Pr ofi t/(loss)	after	tax	%	 E	 2.2% 	 (19.6%)
R etained	Cash	B alances	 A	 £410,000 	 £262,000
Cash	inflow/(outflow)		 A	 £148,000 	 (£616,000)
R esear ch	and	Dev elopment	Expenditur e	on	staf fing	costs		
(including	capi tal ised	staf f	dev elopment	costs)	 A	 £988,000 	 £1,172,000
Debtor	Da ys	 F	 27 	 31
Cr edi tor	Da ys	 F	 35 	 35 17 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
A	 	 R ev enue,	Cash	and	cash	equiv alents,	Cash	flow	f r om	oper ating	activi ties	and	r esear ch	and	dev elopment	staf fing	
expendi tur e	ar e	as	extr acted	f r om	the	financial	statements.
B	 R ev enue	gr owth/r eduction	compar es	the	change	in	r ev enue	f r om	one	y ear	to	the	next	expr essed	in	per centage	terms.
C	 	 Gr oss	Mar gin	is	the	gr oss	pr ofi t	as	a	per centage	of	r ev enue.	Gr oss	pr ofi t	and	r ev enue	ar e	tak en	f r om	the	Statement	of	
Compr ehensiv e	I ncome	in	the	financial	statements.
D	 Pr ofi t/(loss)	f r om	oper ations	is	the	pr ofi t/(loss)	f r om	oper ations	as	a	per centage	of	r ev enue.
E	 Pr ofi t/(loss)	after	tax	is	the	pr ofi t/(loss)	after	tax	as	a	per centage	of	r ev enue.
F	 	 Debtor	da ys	r epr esent	the	length	of	time	tak en	b y	customers	to	pa y	their	bil ls	and	Cr edi tor	da ys	r epr esent	the	length	
of	time	tak en	b y	the	Gr oup	to	pa y	i ts	suppliers.	The	number	of	da ys	outstanding	has	been	calculated	b y	comparing	the	
outstanding	balance	f or	tr ade	debtors	and	tr ade	cr edi tors	wi th	the	a v er age	v alue	of	sales	or	pur chases	f or	the	pr evious	
12	months	r espectiv ely ,	inclusiv e	of	V A T ,	and	mul tiplying	b y	the	number	of	da ys	in	the	y ear .	
Political and Charitable Contributions
During	the	y ear	the	Gr oup	made	charitable	donations	to	UK	
r egister ed	chari ties	of	£15,000	(2009:	£1,000).	No	pol i tical	
donations	wer e	made.
Research and Development
The	Gr oup	in v ests	in	new	pr oduct	dev elopment	and	the	
continual	modi fication	and	impr o v ement	of	i ts	existing	
pr oducts	to	meet	technological	adv ances,	customer	and	new	
mark et	r equir ements.
Employee Involvement and Disability
The	Gr oup’ s	policy	is	to	consult	and	discuss	with	emplo y ees	
an y	mat ters	l ik ely	to	af f ect	their	inter ests.	I nf ormation	on	
mat ters	of	concern	to	emplo y ees	is	pr o vided	in	or der	to	
achiev e	a	common	a w ar eness	of	the	financial	and	economic	
f actors	af f ecting	the	Gr oup’ s	perf ormance.
The	Gr oup’ s	policy	is	to	r ecrui t	disabled	work ers	f or	those	
v acancies	that	they	ar e	able	to	fil l.	Al l	necessary	assistance	
wi th	initial	tr aining	courses	is	giv en.	Once	emplo y ed,	a	car eer	
plan	is	dev eloped	so	as	to	ensur e	sui table	opportunities	f or	
each	disabled	person.	Arr angements	ar e	made,	wher ev er	
possible,	f or	r etr aining	emplo y ees	who	become	disabled	to	
enable	them	to	perf orm	work	identi fied	as	appr opriate	to	their	
apti tudes.
Risks and Uncertainties
Ther e	ar e	a	number	of	potential	risks	and	uncertainties	which	
could	ha v e	a	material	impact	on	the	Gr oup’ s	long-term	
perf ormance	and	cause	actual	r esul ts	to	di f f er	material ly	f r om	
expected	and	historical	r esul ts.	Management	seeks	to	identi f y	
material	risks	and	put	in	place	contingency	plans	to	mi tigate	
the	Gr oup’ s	potential	exposur e.	
Competi tor	Risk
The	mark et	f or	oper ations	management	impr o v ement	is	
becoming	incr easingly	competi tiv e.	T o	mi tigate	this	risk,	
management	works	to	bui ld	str ong	customer	r elationships	and	
dev elop	the	Gr oup’ s	pr oduct	of f ering.	
Commer cial	R elationships
S ome	of	the	pr oducts	utilise	interf aces	wi th	pr oprietary	
softw ar e	licenced	b y	independent,	thir d	part y	softw ar e	
dev elopers.	An y	absence	of	k ey	thir d	part y	pr oducts	could	
ha v e	a	material	impact	on	the	business.
T o	mi tigate	this	risk,	al l	k ey	commer cial	r elationships	and	
dev elopments	in	technology	in	the	mark etplace	ar e	k ept	under	
r eview .	The	Gr oup	also	works	with	a	div ersi t y	of	partners	to	
mi tigate	the	risk	inher ent	in	working	wi th	a	single	partner .
Oper ations
The	Gr oup’ s	f aci li ties	could	be	disrupted	b y	ev ents	bey ond	its	
contr ol	such	as	fir e	or	other	issues.
The	Gr oup	pr epar es	r eco v ery	plans	f or	most	f or eseeable	
si tuations	so	that	our	business	oper ations	would	continue	
should	these	si tuations	oc cur .	
Financial Risk Management Objectives and Policies
The	main	financial	risks	f aced	b y	the	Gr oup	r elate	to	the	risk	
of	def aul t	to	financial	tr ansactions	b y	customers,	a v ailabili t y	of	
f unds	to	meet	the	Gr oup’ s	needs	and	fluctuations	in	f or eign	
ex change	r ates.
The	Gr oup	manages	these	risks	thr ough	an	ef f ectiv e	risk	
management	pr ogr amme.	Exposur es	to	financial	risks	ar e	
moni tor ed	b y	management	and	they	ar e	r equir ed	to	pr oduce	
a	quarterly	risk	r eport	comprising	al l	risks	and	an	indication	of	
the	business	impact	of	those	risks. Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 18
17603	 27/04/2010	 Proof	7
Directors’ Report 	continued
The	risk	r eports	ar e	pr o vided	to	the	B oar d	of	Dir ectors	in	
adv ance	of	the	B oar d	meetings	and	ar e	discussed	b y	the	
B oar d	to	ensur e	that	the	risk	mi tigation	pr ocedur es	ar e	
compliant	wi th	the	Gr oup	pol icy	and	that	an y	new	risks	ar e	
appr opriately	managed.
Cr edi t	Risk
The	objectiv e	is	to	r educe	the	risk	of	loss	arising	f r om	def aul t	
to	financial	tr ansactions	b y	customers.	The	Gr oup	has	f ocused	
on	sel ling	to	a	“blue-chip”	customer	base	ther eb y	minimising	
the	risk	of	incurring	bad	debts.	The	Gr oup’ s	posi tions	wi th	
these	counterparties	and	their	cr edi t	r atings	ar e	r outinely	
moni tor ed.
Liquidi t y
A t	the	y ear	end	the	Gr oup	had	£0.41m	in	net	cash	balances.	
The	objectiv e	is	to	ensur e	that	oper ating	pr ofi ts	ar e	turned	
into	cash	balances	during	the	y ear .	The	pol icy	is	to	monitor	
the	cash	balance	and	k eep	a	posi tiv e	balance.
The	Gr oup	finances	its	oper ations	thr ough	r etained	pr ofi ts	and	
has	an	o v er dr aft	f aci li t y	to	pr o vide	additional	l iquidi t y	i f	
r equir ed.
F or eign	Curr ency	Risk
The	Gr oup	is	exposed	to	minimal	f or eign	curr ency	risk	thr ough	
tr ansactions	wi th	o v erseas	customers.
The	Gr oup	is	also	exposed	to	ex change	fluctuations	which	
af f ect	the	v alue	of	its	o v erseas	subsidiary .	The	Gr oup’ s	
objectiv e	is	to	minimise	ex change	risks	and	the	pol icy	is	to	
match	cash	pa yments	and	r eceipts	in	each	curr ency	wher ev er	
possible.	Curr ency	fluctuations	ar e	r egularly	moni tor ed	but	the	
Gr oup	does	not	use	an y	hedging	instruments.
Directors
The	f ol lowing	Dir ectors	ha v e	held	of fice	since	1	F ebruary	
2009:
RP	B ak er -B ates	
EA	Gooch
A	McR ae
V	P arylo	(R esigned	20	Mar ch	2009)
Directors’ Interests in Shares 
Dir ectors’	inter ests	in	the	shar es	of	the	Gr oup	as	at	31	January	2010,	including	f amily	inter ests,	wer e	as	f ol lows:
  Ordinary  Ordinary 
  shares shares 
  of 1p each  of 1p each 
  31 January 31 January 
  2010 2009
Beneficial 	 	
RP	B ak er -B ates	 	 775,000 	 775,000
EA	Gooch	 	 8,129,720 	 8,128, 720
A	McR ae	 	 20,000 	 20,000
EA	Gooch	is	a	Dir ector	of	eg	solutions	plc	EB T	Ltd	which	is	the	sole	trustee	of	the	eg	solutions	plc	Emplo y ee	B enefi t	T rust	which	
held	1,116,470	shar es	at	the	y ear	end.	 19 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Policy on Payment of Creditors 
It	i s	the	Gr oup’ s	 poli cy	 that	 pa yments	to	 suppli ers	 ar e	made	 i n	
ac cor dance	 wi th	 those	terms	 and	 condi ti ons	 agr eed	between	
the	Gr oup	and	 i ts	 suppli ers,	 pr o vided	 that	 al l	 tr adi ng	terms	
and	 condi ti ons	 ha v e	been	compli ed	 wi th.	
T r ade	cr edi tor	 da ys	 based	 on	 cr edi tors	 at	 31	 J anuary	 2010	
wer e	 35	 da ys	 (2009: 	 35	 da ys).
Statement as to disclosure of information to Auditors
The	 Di r ectors	 who	 wer e	 i n	of fice	 on	 the	date	of	 appr o v al	 of	
these	 fi nanci al 	 statements	 ha v e	 confi rmed	 that,	as	 f ar	as	 they	
ar e	a w ar e,	 ther e	 i s	no	 r el ev ant	 audi t	i nf ormati on	 of	 whi ch	 the	
A udi tors	ar e	una w ar e.	Al l 	 of	 the	Di r ectors	 ha v e	 confi rmed	 that	
they	ha v e	tak en	al l	 the	 steps	 that	 they	ought	 to	 ha v e	 tak en	 as	
Di r ectors	 i n	or der	to	 mak e	themsel v es	a w ar e	 of	 an y	 r el ev ant	
audi t	i nf ormati on	 and	 to	 establi sh	 that	 i t	has	 been	
communi cated	 to	 the	 A udi tor .
Going Concern
The	 Gr oup	manages	i ts	 da y -to-da y	 working	 capi tal	
r equi r ements	 thr ough	 a	 combi nati on	of	 cash	 i nfl ows	 f r om	
sal es,	 ti ght	 management	 of	 expenses	 and,	 when	 r equi r ed,	an	
o v er dr aft	 f acili t y .	 The	 o v er dr aft	 f acili t y	 has	 r ecentl y	 been	
extended	 to	 16	 M ar ch	2011.
The	 Gr oup’ s	 f or ecasts	 and	 pr ojecti ons,	 whi ch	tak e	 ac count	of	
both	 posi ti v e	 and	 negati v e	 v ari ations	i n	tr adi ng	perf ormance,	
show	that	the	 Gr oup	has	 suf fi ci ent	 headr oom	 to	 oper ate	
wi thin	 the	l ev el 	 of	 i ts	 curr ent	 f acili t y .	 Shoul d	 the	f acili t y	 be	
r equi r ed	 bey ond	 16	 M ar ch	2011	 the	Di r ectors	 curr entl y	 ha v e	
no	 r eason	to	 beli ev e	 that	 i t	wil l 	 not	be	extended	 or	that	the	
Gr oup	coul d	 not	obtai n	other	sour ces	 of	 f undi ng.
The	 Di r ectors	 ha v e	a	 r easonable	expectati on,	 based	 on	 both	
r ecent	 past	 perf ormance	and	 the	curr ent	 pipeline	 of	 possi bl e	
f utur e	 busi ness,	that	the	Gr oup	has	 adequate	r esour ces	 to	
conti nue	 i n	oper ati onal 	 exi stence	 f or	 the	f or eseeabl e	 f utur e.	
Ac cor di ngl y ,	they	conti nue	 to	adopt	 the	goi ng	 concern	basi s	 i n	
pr epari ng	the	annual	 r eport	 and	 ac counts.
Annual general meeting
Ernst	&	 Y oung	 LL P	r esi gned	 as	A udi tors	duri ng	 the	y ear	 and	
B ak er	 Til l y	 UK	 A udi t	 LL P	wer e	 appoi nted	b y	 the	Di r ectors	 to	fil l 	
the	casual	 v acancy .
A	 r esol uti on	 to	appoint	 B ak er	 Til l y	 UK	 A udi t	 LL P	as	A udi tors	
wil l 	 be	put	 to	the	members	 at	 The	 annual	 gener al 	meeting	 of	
the	Compan y	 whi ch	wil l 	 be	hel d	 at	 10.30	 am	 on	 26	 M a y	 2010	
at	 the	of fices	 of	 TL T	 S oli ci tors,	 S ea	Containers	 House,	
20	 Upper	 Gr ound,	 B l ackf ri ars	 B ri dge,	London,	 SE1	 9L H.
Approval
Thi s	r eport	 w as	appr o v ed	 b y	 the	B oar d	of	 Di r ectors	 on	 2010	
and	 si gned	 on	 i ts	 behalf	b y:
E A Gooch
Chi ef	Ex ecuti v e	 O f fi cer
23	 April	 2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 20
17603	 27/04/2010	 Proof	7
Directors’ Responsibilities in the Preparation of the Financial Statements
The	Dir ectors	ar e	r esponsible	f or	pr eparing	the	Dir ectors’	
R eport	and	the	financial	statements	in	ac cor dance	wi th	
applicable	la w	and	r egulations.
Compan y	la w	r equir es	the	Dir ectors	to	pr epar e	Gr oup	and	
Compan y	financial	statements	f or	each	financial	y ear .	The	
Dir ectors	ar e	r equir ed	b y	the	AIM	R ules	of	the	London	Stock	
Ex change	to	pr epar e	Gr oup	financial	statements	in	ac cor dance	
wi th	I nternational	Financial	R eporting	Standar ds	(“IFRS”)	as	
adopted	b y	the	Eur opean	Union	(“EU”)	and	ha v e	elected	
under	compan y	la w	to	pr epar e	the	Compan y	financial	
statements	in	ac cor dance	wi th	IFRS	as	adopted	b y	the	EU .
The	financial	statements	ar e	r equir ed	b y	la w	and	IFRS	
adopted	b y	the	EU	to	pr esent	f airly	the	financial	posi tion	of	
the	Gr oup	and	the	Compan y	and	the	financial	perf ormance	of	
the	Gr oup .	The	Companies	Act	2006	pr o vides	in	r elation	to	
such	financial	statements	that	r ef er ences	in	the	r elev ant	part	
of	that	Act	to	financial	statements	giving	a	true	and	f air	view	
ar e	r ef er ences	to	their	achieving	a	f air	pr esentation.
Under	compan y	la w	the	Dir ectors	must	not	appr o v e	the	
financial	statements	unless	they	ar e	satisfied	that	they	giv e	a	
true	and	f air	view	of	the	state	of	af f airs	of	the	Gr oup	and	the	
Compan y	and	of	the	pr ofi t	or	loss	of	the	Gr oup	f or	that	period.	
I n	pr eparing	the	Gr oup	and	Compan y	financial	statements,	
the	Dir ectors	ar e	r equir ed	to:
a.	 select	sui table	ac counting	pol icies	and	then	apply	them	
consistently;
b .	 mak e	judgem ents	and	ac counting	estimates	that	ar e	
r easonable	and	prudent;
c.	 state	whether 	they	ha v e	been	 pr epar ed	in	ac cor dance	wi th	
IFRSs	adopted	b y	the	EU;
d.	 pr epar e	the	financial	statemen ts	on	the	going	concern	
basis	unless	it	is	inappr opriate	to	pr esume	that	the	Gr oup	
and	the	Compan y	wil l	continue	in	business.
The	 Dir ectors	 ar e	 r esponsible	 f or	 k eeping	 adequate	 ac counting	
r ecor ds	that	ar e	suf ficient	to	show	and	explain	the	Gr oup’ s	
and	the	Compan y ’ s	tr ansactions	and	disclose	wi th	r easonable	
ac cur acy	at	an y	time	the	financial	posi tion	of	the	Gr oup	and	
the	Compan y	and	enable	them	to	ensur e	that	the	financial	
statements	comply	wi th	the	Companies	Act	2006.	They	ar e	
also	r esponsible	f or	saf eguar ding	the	assets	of	the	Gr oup	and	
the	Compan y	and	hence	f or	taking	r easonable	steps	f or	the	
pr ev ention	and	detection	of	f r aud	and	other	irr egulari ties.
The	Dir ectors	ar e	r esponsible	f or	the	maintenance	and	
integri t y	of	the	corpor ate	and	financial	inf ormation	included	on	
the	eg	solutions	plc	websi te.
Legislation	in	the	Uni ted	Kingdom	go v erning	the	pr epar ation	
and	dissemination	of	financial	statements	ma y	di f f er	f r om	
legislation	in	other	jurisdictions. 21 eg	solutions	plc 	 www .eguk.co .uk
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17603	 27/04/2010	 Proof	7
Independent Auditors’ Report to the Members of eg solutions plc
W e	ha v e	audi ted	the	Gr oup	and	P ar ent	Compan y	financial	
statements	(“the	financial	statements”)	on	pages	22	to	52.	
The	financial	r eporting	f r amework	that	has	been	appl ied	in	
their	pr epar ation	is	appl icable	la w	and	I nternational	Financial	
R eporting	Standar ds	(IFRSs)	as	adopted	b y	the	Eur opean	
Union	and,	as	r egar ds	the	P ar ent	Compan y	financial	
statements,	as	appl ied	in	ac cor dance	wi th	the	pr o visions	of	
the	Companies	Act	2006.	
This	r eport	is	made	solely	to	the	Compan y ’ s	members,	as	a	
body ,	in	ac cor dance	wi th	Chapter	3	of	P art	16	of	the	
Companies	Act	2006.	Our	audi t	work	has	been	undertak en	so	
that	we	might	state	to	the	Compan y ’ s	members	those	mat ters	
we	ar e	r equir ed	to	state	to	them	in	an	A udi tor ’ s	r eport	and	f or	
no	other	purpose.	T o	the	f ul lest	extent	permi t ted	b y	la w ,	we	
do	not	ac cept	or	assume	r esponsibili t y	to	an y one	other	than	
the	Compan y	and	the	Compan y ’ s	members,	as	a	body ,	f or	our	
audi t	work,	f or	this	r eport,	or	f or	the	opinions	we	ha v e	
f ormed.
Respective responsibilities of Directors and Auditors
As	mor e	f ul ly	explained	in	the	Dir ectors’	R esponsibili ties	
Statement	set	out	on	page	20,	the	Dir ectors	ar e	r esponsible	
f or	the	pr epar ation	of	the	financial	statements	and	f or	being	
satisfied	that	they	giv e	a	true	and	f air	view .	Our	r esponsibili t y	
is	to	audit	the	financial	statements	in	ac cor dance	wi th	
applicable	la w	and	I nternational	Standar ds	on	A udi ting	(UK	
and	I r eland).	Those	standar ds	r equir e	us	to	comply	with	the	
A udi ting	Pr actices	B oar d’ s	(APB’ s)	Ethical	Standar ds	f or	
A udi tors.
Scope of the audit of the financial statements
A	description	of	the	scope	of	an	audi t	of	financial	statements	
is	pr o vided	on	the	APB’ s	websi te	at	www .f r c.or g.uk/apb/
scope/UKNP .
Opinion on the financial statements
I n	our	opinion:
	 > the	financial	statements	giv e	a	true	and	f air	view	of	the	
state	 of	 the	 Gr oup ’ s	 and	 the	 P ar ent	 Compan y ’ s	 af f airs	 as	 at	
31	January	2010	and	of	the	Gr oup’ s	pr ofi t	f or	the	y ear	
then	ended;
	 > the	Gr oup	financial	statements	ha v e	been	pr operly	
pr epar ed	in	ac cor dance	wi th	IFRSs	as	adopted	b y	the	
Eur opean	Union;
	 > the	P ar ent	Compan y ’ s	financial	statements	ha v e	been	
pr operly	pr epar ed	in	ac cor dance	wi th	IFRSs	as	adopted	b y	
the	Eur opean	Union	and	as	appl ied	in	ac cor dance	wi th	the	
Companies	Act	2006;	and
	 > the	 financial	 statements	 ha v e	 been	 pr epar ed	 in	 ac cor dance	
wi th	the	r equir ements	of	the	Companies	Act	2006.
Opinion on other matter prescribed by the Companies 
Act 2006
I n	our	opinion	the	inf ormation	giv en	in	the	Dir ectors’	R eport	
f or	the	financial	y ear	f or	which	the	financial	statements	ar e	
pr epar ed	is	consistent	wi th	the	financial	statements.
Matters on which we are required to report by 
exception
W e	ha v e	nothing	to	r eport	in	r espect	of	the	f ol lowing	mat ters	
wher e	the	Companies	Act	2006	r equir es	us	to	r eport	to	y ou	i f ,	
in	our	opinion:
	 > adequate	ac counting	r ecor ds	ha v e	not	been	k ept	b y	the	
P ar ent	Compan y ,	or	r eturns	adequate	f or	our	audit	ha v e	
not	been	r eceiv ed	f r om	br anches	not	visi ted	b y	us;	or
	 > the	P ar ent	Compan y	financial	statements	ar e	not	in	
agr eement	wi th	the	ac counting	r ecor ds	and	r eturns;	or
	 > certain	disclosur es	of	Dir ectors’	r emuner ation	speci fied	b y	
la w	ar e	not	made;	or
	 > we	ha v e	not	r eceiv ed	al l	the	inf ormation	and	explanations	
we	r equir e	f or	our	audit.
GEOFF WIGHTWICK (S enior	Statutory	A udi tor)
F or	and	on	behal f	of	BAKER	TILL Y	UK	A UDIT	LLP ,	
Statutory	A udi tor
Charter ed	Ac countants
F estiv al	W a y
Stok e	On	T r ent
Staf f or dshir e
ST1	5BB	
23	Apri l	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 22
Heading
17603	 27/04/2010	 Proof	7
  Year ended  Year ended 
  31 January 31 January 
  2010 2009 
 Notes £’000 £’000
Revenue 	 3	 4,150 	 3,666
Cost	of	sales	 	 (1,550) 	 (1,812)
	 	 	
Gross profit 	 	 2,600 	 1,854
Administr ativ e	expenses	 	 (2,502) 	 (2,646)
	 	 	
Profit/(loss) from operations 	 5	 98 	 (792)
Finance	income	 8	 1	 39
	 	 	
Profit/(loss) before tax 	 	 99 	 (753)
T ax	(char ge)/cr edi t	 9	 (8)	 33
	 	 	
Profit/(loss) for the year 	 	 91 	 (720)
	 	 	
Other	compr ehensiv e	income:
Ex change	dif f er ences	on	tr anslation	of	f or eign	curr ency	 	 14 	 (28)
	 	 	
Total comprehensive income/(expense) for the year 	 	 105 	 (748)
	 	 	
Profit/(loss) and total comprehensive income/(expense) 
attributable to equity shareholders of the Parent Company 	 	 105 	 (748)
	 	 	
Earnings/(loss) per share
Fr om	continuing	oper ations
B asic	 11	 0.7p 	 (5.5p)
Di luted	 11	 0.6p 	 (5.5p)
Consolidated	Statement	of	Compr ehensiv e	I ncome
f or	the	y ear	ended	31	January	2010 23 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
  At  At 
  31 January 31 January 
  2010 2009 
 Notes £’000 £’000
Assets
Non-current assets
I ntangible	assets	 12	 1,705 	 1,434
Pr opert y ,	plant	and	equipment	 13	 50 	 74
	 	
	 	 1,755 	 1,508
	 	
Current assets
T r ade	and	other	r eceiv ables	 16	 642 	 539
I n v entories	 18	 18 	 17
Curr ent	tax	r eceiv able	 	 50 	 258
Cash	and	cash	equiv alents	 19	 410 	 262
	 	
	 	 1,120 	 1,076
	 	
Total assets 	 	 2,875 	 2,584
	 	
Liabilities
Current liabilities 	 	 	
T r ade	and	other	pa y ables	 21	 1,169 	 1,063
	 	
	 	 1,169 	 1,063
	 	
Non-current liabilities
Def err ed	tax	liabili ties	 24	 254 	 215
	 	
	 	 254 	 215
	 	
Total liabilities 	 	 1,423 	 1,278
	 	
Net assets 	 	 1,452 	 1,306
	 	
Equity
Shar e	capi tal	 26	 143 	 143
Shar e	pr emium	 	 2,910 	 2,910
Shar e-based	pa yment	r eserv e	 	 208 	 218
Own	shar es	held	 	 (949) 	 (1,000)
R etained	earnings	 	 (856) 	 (947)
F or eign	ex change	 	 (4)	 (18)
	 	
Total equity 	 	 1,452 	 1,306
	 	
The	financial	statements	on	pages	22	to	52	wer e	appr o v ed	b y	the	B oar d	of	Dir ectors	and	authorised	f or	issue	on	23	Apri l	2010	and	ar e	
signed	on	i ts	behalf	b y:	
Elizabeth Gooch
Chief	Ex ecutiv e	Of ficer
Consolidated	Statement	of	Financial	P osi tion
as	at	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 24
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17603	 27/04/2010	 Proof	7
  At  At 
  31 January 31 January 
  2010 2009 
 Notes £’000 £’000
Assets
Non-current assets 	
I ntangible	assets	 12	 1,705 	 1,434
Pr opert y ,	plant	and	equipment	 14	 45 	 63
I n v estments	in	subsidiaries	 15	 —	 —
I nter -compan y	r eceiv ables	 	 757 	 606
	 	
	 	 2,507 2,103
	 	
Current assets
T r ade	and	other	r eceiv ables	 17	 527 	 445
I n v entories	 18	 18 	 17
Curr ent	tax	r eceiv able	 	 50 	 258
Cash	and	cash	equiv alents	 20	 224 	 182
	 	
	 	 819 	 902
	 	
Total assets 	 	 3,326 	 3,005
	 	
Liabilities
Current liabilities 	 	 	
T r ade	and	other	pa y ables	 22	 1,093 	 996
	 	
	 	 1,093 	 996
	 	
Non-current liabilities
Def err ed	tax	liabili ties	 25	 254 	 215
	 	
	 	 254 	 215
	 	
Total liabilities 	 	 1,347 	 1,211
	 	
Net assets 	 	 1,979 	 1, 794
	 	
Equity
Shar e	capi tal	 26	 143 	 143
Shar e	pr emium	 	 2,910 	 2,910
Shar e-based	pa yment	r eserv e	 	 208 	 218
Own	shar es	held	 	 (949) 	 (1,000)
R etained	earnings	 	 (333) 	 (477)
	 	
Total equity 	 	 1,979 	 1, 794
	 	
The	financial	statements	on	pages	22	to	52	wer e	appr o v ed	b y	the	B oar d	of	Dir ectors	and	authorised	f or	issue	on	23	Apri l	2010	and	ar e	
signed	on	i ts	behalf	b y:	
Elizabeth Gooch
Chief	Ex ecutiv e	Of ficer
Compan y	Statement	of	Financial	P osi tion
as	at	31	January	2010 25 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Consolidated	Statement	of	Cash	Flows
f or	the	y ear	ended	31	January	2010
  Year ended  Year ended 
  31 January 31 January 
  2010 2009 
 Notes £’000 £’000
Operating activities
Cash	gener ated	b y/(consumed	in)	oper ations	 28	 488 	 (77)
I ncome	tax es	r eceiv ed	 	 240 	 —
	 	 	
Net cash generated by/(consumed in) operating activities 	 	 728 	 (77)
	 	 	
Investing activities
Pur chases	of	intangible	assets	 	 (568) 	 (528)
Pur chases	of	pr opert y ,	plant	and	equipment	 	 (19)	 (54)
Pr oceeds	f r om	sale	of	pr opert y ,	plant	and	equipment	 	 4	 4
Ex er cise	of	options	shar es	 	 2	 —
I nter est	r eceiv ed	 	 1	 39
	 	 	
Net cash used in investing activities 	 	 (580) 	 (539)
	 	 	
Net increase/(decrease) in cash and cash equivalents 	 	 148 	 (616)
	 	 	
Cash and cash equivalents at beginning of year 	 	 262 	 878
	 	 	
Cash and cash equivalents at end of year
	 	 410 	 262
	 	 	 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 26
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17603	 27/04/2010	 Proof	7
Compan y	Statement	of	Cash	Flows
f or	the	y ear	ended	31	January	2010
  Year ended  Year ended 
  31 January 31 January 
  2010 2009 
 Notes £’000 £’000
Operating activities
Cash	gener ated	f r om/(consumed	in)	oper ations	 29	 381 	 (7)
I ncome	tax es	r eceiv ed	 	 240 	 —
	 	 	
Net cash generated from/(consumed in) operating activities 	 	 621 	 (7)
	 	 	
Investing activities
Pur chases	of	intangible	assets	 	 (568) 	 (528)
Pur chases	of	pr opert y ,	plant	and	equipment	 	 (18)	 (51)
Pr oceeds	f r om	sale	of	pr opert y ,	plant	and	equipment	 	 4	 4
Ex er cise	of	options	shar es	 	 2	 —
I nter est	r eceiv ed	 	 1	 39
	 	 	
Net cash used in investing activities 	 	 (579) 	 (536)
	 	 	
Net increase/(decrease) in cash and cash equivalents 	 	 42 	 (543)
	 	 	
Cash and cash equivalents at beginning of year 	 	 182 	 725
	 	 	
Cash and cash equivalents at end of year
	 	 224 	 182
	 	 	 27 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Consolidated	Statement	of	Changes	in	Equi t y
	
       Total
       amounts
       attributable
       to equity
   Share-    holders 
   based Own   of the 
 Share Share payment shares Retained Foreign Parent 
 capital premium reserve held earnings exchange Company
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
B alance	at	1	F ebruary	2008	 	143	 2,910	 191	 (1,000)	 (227)	 10	 2,027
	 	 	 	 	 	 	
Loss	f or	the	y ear	 —	 —	 —	 —	 (720)	 —	 (720)
Other	compr ehensiv e	losses	 —	 —	 —	 —	 —	 (28)	 (28)
	 	 	 	 	 	 	
T otal	compr ehensiv e	loss	 —	 —	 —	 —	 (720)	 (28)	 (748)
	 	 	 	 	 	 	
Shar e-based	pa yments	 —	 —	 27	 —	 —	 —	 27
	 	 	 	 	 	 	
Balance at 31 January 2009 	 143 	 2,910 218 (1,000) (947) (18) 1,306
Pr ofi t	f or	the	y ear	 —	 —	 —	 —	 91	 —	 91
Other	compr ehensiv e	gains	 —	 —	 —	 —	 —	 14	 14
	 	 	 	 	 	 	
T otal	compr ehensiv e	income	 —	 —	 —	 —	 91	 14	 105
	 	 	 	 	 	 	
Shar e-based	pa yments	 —	 —	 39	 —	 —	 —	 39
Shar es	issued	to	emplo y ees	 —	 —	 (49)	 51	 —	 —	 2
	 	 	 	 	 	 	
Balance at 31 January 2010 143 2,910 208 (949) (856) (4) 1,452
	 	 	 	 	 	 	
The	shar e-based	pa yment	r eserv e	is	a	r eserv e	to	r ecognise	those	amounts	in	r etained	earnings	in	r espect	of	shar e	based	pa yments.
The	own	shar es	held	r eserv e	r epr esents	the	shar es	held	in	trust	b y	the	eg	solutions	Emplo y ee	B enefi t	T rust.
R etained	earnings	include	the	ac cumulated	pr ofi ts	and	losses	arising	f r om	the	consolidated	statement	of	compr ehensiv e	income		
ex cluding	f or eign	ex change	dif f er ences.
The	f or eign	ex change	r eserv e	comprises	al l	ex change	dif f er ences	arising	f r om	the	tr anslation	of	the	financial	statements	of	o v erseas	
oper ations. Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 28
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17603	 27/04/2010	 Proof	7
Compan y	Statement	of	Changes	in	Equi t y
	
       Total
       amounts
       attributable
       to equity
    Share-   holders 
    based Own  of the 
  Share Share payment shares Retained Parent 
  capital Premium reserve held earnings Company
  £’000 £’000 £’000 £’000 £’000 £’000
B alance	at	1	F ebruary	2008	 	 	143	 2,910	 191	 (1,000)	 (77)		 2,167
	 	 	 	 	 	 	
Loss	and	total	compr ehensiv e	expense	
f or	the	y ear	 	 —	 —	 —	 —	 (400)	 (400)
Shar e-based	pa yments	 	 —	 —	 27	 —	 —	 27
	 	 	 	 	 	 	
Balance at 31 January 2009 	 	 143 	 2,910 218 (1,000) (477) 1,794
Pr ofi t	and	total	compr ehensiv e	income 	
f or	the	y ear	 	 —	 —	 —	 —	 144	 144
	 	 	 	 	 	 	
Shar e-based	pa yments	 	 —	 —	 39	 —	 —	 39
Shar es	issued	to	emplo y ees	 	 —	 —	 (49)	 51	 —	 2
	 	 	 	 	 	 	
Balance at 31 January 2010  143 2,910 208 (949) (333) 1,979
	 	 	 	 	 	 	
The	shar e-based	pa yment	r eserv e	is	a	r eserv e	to	r ecognise	those	amounts	in	r etained	earnings	in	r espect	of	shar e-based	pa yments.
The	own	shar es	held	r eserv e	r epr esents	the	shar es	held	in	trust	b y	the	eg	solutions	Emplo y ee	B enefi t	T rust.
R etained	earnings	include	the	ac cumulated	pr ofi ts	and	losses	arising	f r om	the	Compan y	statement	of	compr ehensiv e	income. 29 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
1.   Accounting Policies 
The	Gr oup	and	Compan y	financial	statements	ha v e	been	pr epar ed	in	ac cor dance	wi th	I nternational	Financial	R eporting	Standar ds	
as	endorsed	b y	the	EU	(“IFRS”).	
The	financial	statements	ha v e	been	pr epar ed	on	the	historical	cost	and	going	concern	basis	as	discussed	in	the	Dir ectors	R eport.		
The	principal	ac counting	pol icies	adopted	ar e	set	out	below .
The	Compan y	made	a	pr ofi t	after	tax	of	£0.14m	(2009:	Loss	of	£0.40m)	f or	the	financial	y ear .		The	Dir ectors	ha v e	tak en	adv antage	
of	the	ex emption	a v ailable	under	section	408	of	the	Companies	Act	2006	and	ha v e	not	pr esented	a	Statement	of	Compr ehensiv e	
I ncome	f or	the	Compan y .
 Relevant Accounting Standards Issued and Effective
During	the	y ear	the	f ol lowing	r elev ant	ac counting	standar ds	ha v e	been	issued	and	ar e	ef f ectiv e	but	ha v e	not	had	a	material	impact	
on	the	Gr oup:
	 > IFRS	2	Shar e-based	P a yments	–	Amendment;	V esting	condi tions	and	cancel lations	
	 > IFRS	7	Financial	I nstruments:	Disclosur es	–	Amendment;	R eclassi fication	of	Financial	Assets	
	 > IFRS	7	Financial	I nstruments:	Disclosur es	–	Amendment;	R eclassi fication	of	Financial	Assets	–	Ef f ectiv e	date	and	tr ansi tion	
	 > IFRS	7	Financial	I nstruments:	Disclosur es	–	Amendment;	I mpr o ving	Disclosur es	About	Financial	I nstruments	
	 > IFRS	8	Oper ating	segments	
	 > IA S	 1	 Pr esentation	 of	 Financial	 State ments	 –	 Compr ehensiv e	 r evision	 including	 r equiring	 a	 statement	 of	 compr ehensiv e	 income	
	 > IA S	27	Consol idated	and	Separ ate	Financial	Statements	–	Amendment;	Cost	of	an	in v estment	in	a	subsidiary ,	jointly -contr ol led	
enti t y	or	associate	
	 > IA S	39	Financial	I nstruments:	R ecogni tion	and	Measur ement	–	Amendment;	R eclassi fication	of	Financial	Assets	
	 > IA S	39	Financial	I nstruments:	R ecogni tion	and	Measur ement	–	Amendment;	R eclassi fication	of	Financial	Assets	–	Ef f ectiv e	
date	and	tr ansi tion	
During	the	y ear	the	amendments	ha v e	been	made	to	the	f ol lowing	ac counting	standar ds	but	ha v e	not	had	a	material	impact	on	the	
Gr oup:
	 > IFRS	7	Financial	I nstruments:	Disclosur es	(I ncluding	consequential	amendments	f r om	IA S	28	&	31)	
	 > IA S	1	Pr esentation	of	Financial	Statements	
	 > IA S	2	I n v entories	(Consequential	amendments	f r om	IA S	41)	
	 > IA S	7	Statement	of	Cash	Flows	(Consequential	amendments	f r om	IA S	16)	
	 > IA S	8	Ac counting	P olicies,	Changes	in	Ac counting	Estimates	and	Err ors	
	 > IA S	10	Ev ents	after	the	R eporting	P eriod	
	 > IA S	16	Pr opert y ,	Plant	and	Equipment	(I ncluding	consequential	amendments	f r om	IA S	40)	
	 > IA S	18	R ev enue	
	 > IA S	19	Emplo y ee	B enefi ts	
	 > IA S	27	Consol idated	and	Separ ate	Financial	Statements	
	 > IA S	32	Financial	I nstruments:	Pr esentation	(Consequential	amendments	f r om	IA S	28	&	31)	
	 > IA S	36	I mpairment	of	Assets	(I ncluding	consequential	amendments	f r om	IA S	41)	
	 > IA S	38	I ntangible	Assets	
	 > IA S	39	Financial	I nstruments:	R ecogni tion	and	Measur ement	
Notes	to	the	Gr oup	Financial	Statements
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 30
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17603	 27/04/2010	 Proof	7
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010
1.   Accounting Policies continued
 Relevant Accounting Standards Issued but not yet effective
During	the	y ear	the	f ol lowing	r elev ant	ac counting	standar ds	ha v e	been	issued	but	ar e	not	y et	ef f ectiv e	and	ar e	not	expected	to	
ha v e	a	material	impact	on	the	Gr oup:
	 > IFRS	3	B usiness	Combinations	–	Compr ehensiv e	r evision	on	applying	the	acquisi tion	method	
	 > IA S	27	Consol idated	and	Separ ate	Financial	Statements	–	Amendments	arising	f r om	IFRS	3	
	 > IFRS	2	Shar e-based	P a yments	–	Amendment;	Cash-set tled	Shar e-based	P a yment	T r ansactions	
	 > IFRS	9	Financial	I nstruments	
	 > IA S	24	R evised	IA S	24	R elated	P art y	Disclosur es	
During	the	y ear	the	f ol lowing	impr o v ements	to	ac counting	standar ds	ha v e	been	issued	but	ar e	not	y et	ef f ectiv e	and	ar e	not	
expected	to	ha v e	a	material	impact	on	the	Gr oup:
	 > IFRS	2	Shar e-based	P a yment	
	 > IFRS	8	Oper ating	S egments	
	 > IA S	1	Pr esentation	of	Financial	Statements	
	 > IA S	7	Statement	of	Cash	Flows	
	 > IA S	18	R ev enue	
	 > IA S	36	I mpairment	of	Assets	
	 > IA S	38	I ntangible	Assets	
	 > IA S	39	Financial	I nstruments:	R ecogni tion	and	Measur ement	
	
 Basis of Consolidation
The	Gr oup	financial	statements	consol idate	the	financial	statements	of	eg	solutions	plc	and	the	enterprises	contr ol led	b y	the	Gr oup	
(i ts	subsidiaries)	made	up	to	31	January	each	y ear .	The	financial	statements	ar e	pr esented	in	pounds	sterling	and	ha v e	been	
r ounded	to	the	near est	thousand	ex cept	wher e	otherwise	indicated.
 Subsidiaries
Subsidiaries	ar e	consol idated	f r om	the	date	of	their	acquisition,	being	the	date	on	which	the	Gr oup	obtains	contr ol,	and	continue	to	
be	consolidated	unti l	the	date	that	such	contr ol	ceases.	The	financial	statements	of	subsidiaries	used	in	the	pr epar ation	of	the	
consol idated	financial	statements	ar e	pr epar ed	f or	the	same	r eporting	y ear	as	the	P ar ent	Compan y	and	ar e	based	on	consistent	
ac counting	pol icies.	Al l	inter -compan y	balances	and	tr ansactions,	including	unr eal ised	pr ofi ts	arising	f r om	them,	ar e	el iminated.
 Adoption of IFRS 8 ‘Operating Segments’
The	gr oup	has	adopted	IFRS	8	‘Oper ating	S egments’	during	the	y ear .	The	standar d	supersedes	IA S	14	‘S egment	R eporting’	and	is	
ef f ectiv e	f or	the	y ear	ended	31	January	2010.	IFRS	8	pr o vides	segmental	inf ormation	f or	the	Gr oup	on	the	basis	of	inf ormation	
r eported	internal ly	to	the	chief	oper ating	decision-mak er	f or	decision-making	purposes.	The	Gr oup	considers	that	the	r ole	of	chief	
oper ating	decision-mak er	is	perf ormed	b y	eg	solutions	plc’ s	B oar d	of	Dir ectors.	IA S	14	r equir ed	segmental	inf ormation	to	be	
r eported	f or	business	segments	and	geogr aphical	segments	based	on	assets	and	oper ations	that	pr o vided	pr oducts	or	services	
subject	to	di f f er ent	risks	and	r eturns.	The	adoption	of	IFRS	8	has	not	had	an y	impact	on	the	perf ormance	or	posi tion	of	the	Gr oup	
and	has	not	af f ected	the	segmental	r eporting	disclosur es	as	the	Gr oup	continues	to	be	r eviewed	b y	the	B oar d	based	on	
geogr aphical	location	due	to	the	Gr oup	oper ating	two	distinct	companies	in	two	di f f er ent	geogr aphical	ar eas.		
  31 eg	solutions	plc 	 www .eguk.co .uk
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17603	 27/04/2010	 Proof	7
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010
1.   Accounting Policies continued
 Property, Plant and Equipment
Pr opert y ,	plant	and	equipment	ar e	stated	at	historical	cost,	net	of	depr eciation	and	an y	pr o vision	f or	impairment.
Depr eciation	is	pr o vided	on	all	pr opert y ,	plant	and	equipment	at	r ates	calculated	to	wri te	each	asset	down	to	i ts	estimated	r esidual	
v alue	o v er	i ts	expected	usef ul	l i f e,	as	f ol lows:
Computer	Equipment	 —	 50%	str aight	l ine
Of fice	Equipment	 —	 15%	r educing	balance
Fixtur es	and	Fi t tings	 —	 15%	r educing	balance
Motor	V ehicles	 —		 25%	r educing	balance
Leasehold	I mpr o v ements	 —		 20%	str aight	l ine
 Impairment of non-current assets
A t	each	r eporting	date,	the	Gr oup	r eviews	the	carrying	amounts	of	its	non	curr ent	assets	to	determine	whether	ther e	is	an y	
indication	that	those	assets	ha v e	suf f er ed	an	impairment	loss.	If	an y	such	indication	exists,	the	r eco v er able	amount	of	the	asset	is	
estimated	in	or der	to	determine	the	extent	of	the	impairment	loss	(if	an y).	Wher e	the	asset	does	not	gener ate	cash	flows	that	ar e	
independent	 f r om	 other	 assets,	 the	 Gr oup	 estimates	 the	 r eco v er able	 amount	 of	 the	 cash-gener ating	 uni t	 to	 which	 the	 asset	 belongs.	
An	intangible	asset	wi th	an	indefini te	usef ul	l i f e	or	that	has	not	y et	been	br ought	into	use	is	tested	f or	impairment	annually .
 Development Assets 
Expendi tur e	on	r esear ch	activi ties	is	r ecognised	as	an	expense	in	the	period	in	which	i t	is	incurr ed.
An	internal ly -gener ated	intangible	asset	arising	f r om	the	Gr oup’ s	softw ar e	dev elopment	is	r ecognised	only	when	all	of	the	f ol lowing	
condi tions	ar e	met:
	 > an	asset	is	cr eated	that	can	be	identi fied	(such	as	softw ar e	and	new	pr ocesses);
	 > i t	is	pr obable	that	the	asset	cr eated	wi l l	gener ate	f utur e	economic	benefi ts;	
	 > the	dev elopment	cost	of	the	asset	can	be	measur ed	r el iably;
	 > the	pr oduct	or	pr ocess	is	technical ly	and	commer cial ly	viable;	and	
	 > suf ficient	r esour ces	ar e	a v ailable	to	complete	the	dev elopment	and	to	either	sel l	or	use	the	asset.
Wher e	no	internal ly -gener ated	intangible	asset	can	be	r ecognised,	dev elopment	expendi tur e	is	r ecognised	as	an	expense	in	the	
period	in	which	i t	is	incurr ed.	
I nternal ly -gener ated	intangible	assets	ar e	amortised	on	a	str aight -l ine	basis	o v er	their	usef ul	l iv es,	(six	y ears).	The	amortisation	is	
char ged	to	cost	of	sales	in	the	Statement	of	Compr ehensiv e	I ncome.
 Inventories
I n v entories	ar e	stated	at	the	lower	of	cost	and	net	r eal isable	v alue.		
 Retirement Benefits
The	Compan y	oper ates	a	defined	contribution	pension	scheme.	The	assets	of	the	scheme	ar e	held	separ ately	f r om	those	of	the	
Compan y	in	an	independently	administer ed	f und.	The	amount	char ged	to	the	Statement	of	Compr ehensiv e	I ncome	in	r espect	of	
pension	costs	and	other	post	r etir ement	benefi ts	is	the	contributions	pa y able	in	the	y ear .
Di f f er ences	between	contributions	pa y able	in	the	y ear	and	contributions	actual ly	paid	ar e	shown	as	either	ac cruals	or	pr epa yments	
at	the	r eporting	date.	 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 32
Heading
17603	 27/04/2010	 Proof	7
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010
1.   Accounting Policies continued
 Foreign Currencies
T r ansactions	in	curr encies	other	than	sterl ing,	the	pr esentational	and	f unctional	curr ency	of	the	Gr oup ,	ar e	r ecor ded	at	the	r ates	of	
ex change	pr ev ailing	on	the	dates	of	the	tr ansactions.	A t	each	r eporting	date,	monetary	assets	and	l iabili ties	that	ar e	denominated	in	
f or eign	curr encies	ar e	r etr anslated	at	the	r ates	pr ev ailing	on	the	r eporting	date.	Gains	and	losses	arising	on	r etr anslation	ar e	
included	in	the	Statement	of	Compr ehensiv e	I ncome	f or	the	period.
	
On	consol idation,	the	assets	and	l iabili ties	of	the	Gr oup’ s	o v erseas	oper ations	ar e	tr anslated	at	ex change	r ates	pr ev ailing	on	the	
r eporting	date.		I ncome	and	expense	items	ar e	tr anslated	at	the	a v er age	ex change	r ates	f or	the	period.	Ex change	dif f er ences	
arising,	if	an y ,	ar e	classi fied	as	equit y	and	tr ansf err ed	to	the	Gr oup’ s	f or eign	ex change	r eserv e.	Such	tr anslation	di f f er ences	ar e	
r ecognised	as	income	or	as	expenses	in	the	period	in	which	the	oper ation	is	disposed	of .
The	r esul ts	of	o v erseas	oper ations	ha v e	been	tr anslated	into	sterling	at	the	monthly	weighted	a v er age	r ate	of	ex change	f or	the	
period.	R and	denominated	assets	and	l iabili ties	ha v e	been	tr anslated	at	the	r elev ant	r ate	of	ex change	at	the	r eporting	date	of	 	 	 	 	 	 	 	 	 	 	 	 	 	
£1	=	R12.2749.	(2009:	£1	=	R14 .6971).
 Taxation
The	tax	expense	r epr esents	the	sum	of	the	curr ent	tax	expense	and	def err ed	tax	expense.
The	tax	curr ently	pa y able	is	based	on	taxable	pr ofi t	f or	the	y ear .	T axable	pr ofi t	di f f ers	f r om	net	pr ofi t	as	r eported	in	the	Statement	
of	Compr ehensiv e	I ncome	because	i t	ex cludes	i tems	of	income	or	expense	that	ar e	taxable	or	deductible	in	other	y ears	and	i t	
f urther	ex cludes	i tems	that	ar e	nev er	taxable	or	deductible.	The	Gr oup’ s	liabili t y	f or	curr ent	tax	is	calculated	b y	using	tax	r ates	that	
ha v e	been	enacted	or	substantiv ely	enacted	b y	the	r eporting	date.
Def err ed	tax	is	the	tax	expected	to	be	pa y able	or	r eco v er able	on	di f f er ences	between	the	carrying	amount	of	assets	and	liabili ties	in	
the	financial	statements	and	the	corr esponding	tax	bases	used	in	the	computation	of	taxable	pr ofi t.	Def err ed	tax	liabili ties	ar e	
r ecognised	f or	al l	taxable	tempor ary	di f f er ences	and	def err ed	tax	assets	ar e	r ecognised	to	the	extent	that	i t	is	pr obable	that	taxable	
pr ofi ts	wi l l	be	a v ailable	against	which	deductible	tempor ary	di f f er ences	can	be	utilised.	Such	assets	and	l iabili ties	ar e	not	r ecognised	
i f	the	tempor ary	di f f er ence	arises	f r om	the	initial	r ecogni tion	of	goodwi l l	or	f r om	the	initial	r ecogni tion	(other	than	in	a	business	
combination)	of	other	assets	and	l iabili ties	in	a	tr ansaction	which	af f ects	nei ther	the	tax	pr ofi t	nor	the	ac counting	pr ofi t.
Def err ed	tax	liabili ties	ar e	r ecognised	f or	taxable	tempor ary	di f f er ences	arising	on	in v estments	in	subsidiaries	and	associates,	and	
inter ests	in	joint	v entur es,	ex cept	wher e	the	Gr oup	is	able	to	contr ol	the	r ev ersal	of	the	tempor ary	di f f er ence	and	it	is	pr obable	that	
the	tempor ary	di f f er ence	wi l l	not	r ev erse	in	the	f or eseeable	f utur e.
Def err ed	tax	is	calculated	at	the	tax	r ates	that	ar e	expected	to	apply	to	the	period	when	the	asset	is	r eal ised	or	the	liabili t y	is	set tled	
based	upon	tax	r ates	that	ha v e	been	enacted	or	substantiv ely	enacted	b y	the	r eporting	date.	Def err ed	tax	is	char ged	or	cr edi ted	in	
the	Statement	of	Compr ehensiv e	I ncome,	ex cept	when	i t	r elates	to	i tems	cr edi ted	or	char ged	dir ectly	to	equi t y ,	in	which	case	the	
def err ed	tax	is	dealt	wi th	in	equi t y .
	
 Cash and Cash Equivalents
Cash	and	cash	equiv alents	comprise	cash	in	hand	and	at	bank	and	other	short -term	deposi ts	held	b y	the	Gr oup	with	maturi ties	of	
less	than	thr ee	months.
 Share-based Payments
The	Gr oup	has	appl ied	the	r equir ements	of	IFRS	2	Shar e-based	P a yments.	I n	ac cor dance	wi th	the	tr ansi tional	pr o visions,	IFRS	2	
has	been	appl ied	to	al l	gr ants	of	equi t y	instruments	after	7	No v ember	2002	that	had	not	v ested	as	of	1	F ebruary	2006.
Equi t y -set tled	shar e-based	pa yments	ar e	measur ed	at	f air	v alue	at	the	date	of	gr ant.	The	f air	v alue	determined	at	the	gr ant	date	of	
equi t y -set tled	shar e-based	pa yments	is	expensed	on	a	str aight -l ine	basis	o v er	the	v esting	period,	based	on	the	Gr oup’ s	estimate	of	
shar es	that	wi l l	ev entual ly	v est.	F air	v alue	is	measur ed	b y	use	of	the	B lack - S choles	model.	The	expected	l i f e	used	in	the	model	has	
been	adjusted,	based	on	management ’ s	best	estimate,	f or	the	ef f ect	of	non-tr ansf er abili t y ,	ex er cise	r estrictions,	and	beha viour al	
consider ations. 33 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010
1.   Accounting Policies continued
 Employee Share Ownership Plans
The	Compan y	oper ates	an	ESOP	trust	and	has	de	f acto	contr ol	of	the	shar es	held	b y	the	trust	and	bears	their	benefi ts	and	risks.		
The	Gr oup	r ecor ds	certain	assets	and	liabili ties	of	the	trust	as	i ts	own.	Finance	costs	and	administr ativ e	expenses	ar e	char ged	as	
they	ac crue.
 Leases
Leases	in	which	a	signi ficant	portion	of	the	risk	and	r ew ar ds	of	ownership	ar e	r etained	b y	the	lessor	ar e	classi fied	as	oper ating	
leases.	P a yments	made	under	oper ating	leases	(net	of	an y	incentiv es	r eceiv ed	f r om	the	lessor)	ar e	char ged	to	the	Statement	of	
Compr ehensiv e	I ncome	on	a	str aight -l ine	basis	o v er	the	period	of	the	lease.	The	Gr oup	has	no	finance	leases.
  Critical accounting estimates and judgements
The	pr epar ation	of	Gr oup	financial	statements	in	conf ormi t y	wi th	Gener al ly	Ac cepted	Ac counting	Principles	r equir es	the	use	of	
ac counting	estimates	and	judgements	in	the	pr ocess	of	applying	the	Gr oup’ s	ac counting	pol icies.	These	judgements	and	estimates	
ar e	based	on	historical	experience	and	management ’ s	best	knowledge	of	the	amounts,	ev ents	or	actions.	
 I mp airment	of	non -financial	as sets
The	Gr oup	assesses	whether	ther e	ar e	an y	indicators	of	impairment	f or	al l	non-financial	assets	at	each	r eporting	date.	I ntangibles	
ar e	tested	f or	impairment	annually	and	at	other	times	when	such	indicators	exist.	Other	non-financial	assets	ar e	tested	f or	
impairment	when	ther e	ar e	indicators	that	the	carrying	amounts	ma y	not	be	r eco v er able.
 Revenue Recognition
R ev enue	is	r ecognised	when	r ev enue	and	associated	costs	can	be	measur ed	r el iably	and	f utur e	economic	benefi ts	ar e	pr obable.		
R ev enue	is	measur ed	at	the	f air	v alue	of	the	consider ation	r eceiv ed	or	r eceiv able,	ex cluding	discounts,	r ebates,	V A T	and	other	sales	
tax es.	The	f ol lowing	criteria	must	also	be	met	bef or e	r ev enue	is	r ecognised:	
 Mai ntenance	Contr acts
I ncome	in	r espect	of	maintenance	contr acts	is	in v oiced	on	an	annual	basis	and	r ecognised	as	earned.
 S oft w ar e	Licences
F or	perpetual	licences	r ev enues	ar e	r ecognised	once	the	softw ar e	has	been	f ul ly	instal led.
F or	fix ed	term	l icences	r ev enues	ar e	r ecognised	on	a	str aight -l ine	basis.
 I mp lementat ion	an d	softw ar e	service s
R ev enues	in	r espect	of	implementation	and	softw ar e	services	ar e	r ecognised	on	a	per centage	of	completion	basis	calculated	
pr o-r ata	on	the	number	of	man	da ys	completed	to	the	estimated	total	pr oject	man	da ys.
	 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 34
Heading
17603	 27/04/2010	 Proof	7
2.   Events after the Reporting Period
On	11	Mar ch	2010,	the	Gr oup	announced	the	acquisi tion	of	XT AQ	Limi ted,	a	dev eloper	and	suppl ier	of	business	perf ormance	
measur ement	softw ar e	and	associated	services,	f or	a	consider ation	of	up	to	£233,333,	f urther	detai ls	of	which	ar e	set	out	below .
F ounded	in	1993	XT AQ	is	a	priv ately	owned	business	based	in	B ristol	emplo ying	eight	people.	XT AQ	has	dev eloped	i ts	Nuqleus	
business	perf ormance	measur ement	softw ar e	which	it	distributes	wi th	support	services	to	del iv er	impr o v ed	oper ational	perf ormance	
and	ef f ectiv eness.	Customers	deplo y	Nuqleus	str ategical ly	thr oughout	the	enterprise	or	as	a	point	solution	to	addr ess	particular	
oper ational	management	inf ormation	r equir ements.	XT AQ	is	curr ently	deplo ying	the	latest	v ersion	of	i ts	softw ar e	pr oduct,	Nuqleus	
3D ,	and	has	cr eated	long-term	r elationships	with	i ts	customers	which,	t ypical ly ,	use	Nuqleus	within	pr ocessing	centr es,	cal l	centr es	
and	mobi le	pr of essional	workf or ces.	XT AQ’ s	curr ent	customers	include	B ar cla y car d,	Citibank,	GE	Capi tal,	Principal i t y	B uilding	Societ y	
and	R o y al	B ank	of	S cotland	as	wel l	as	a	number	of	publ ic	sector	cl ients.
I n	the	y ear	to	31	Mar ch	2009	XT AQ’ s	audited	turno v er	w as	£0.55m,	on	which	i t	incurr ed	a	loss	bef or e	tax	of	£0.15m.	As	at	the	same	
date	XT AQ	had	a	defici t	on	net	assets	of	£0.05m.
The	consider ation	pa y able	b y	the	Compan y	f or	XT AQ	comprises:	£33,333	in	cash	and	the	balance	b y	the	issue	of	up	to	£150,000	in	
5	per cent	Con v ertible	Unsecur ed	Loan	Notes	2012	(”Loan	Notes”),	and	up	to	90,909	new	or dinary	shar es	of	1p	each	in	the	Compan y	
(”New	Or dinary	Shar es”).	The	total	maximum	consider ation	equates	to	the	appr o ximate	lev el	of	curr ent	contr acted	maintenance	
r ev enues	f or	the	12	months	ending	31	Mar ch	2011.	The	consider ation	wil l	be	adjusted	on	a	£-f or -£	basis	f or	an y	actual	incr ease	in	
the	defici t	on	net	assets	which	has	been	estimated	b y	XT AQ	as	at	28	F ebruary	2010.	On	the	second	anniv ersary	of	their	issue	the	
Loan	Notes	ar e	r epa y able	or	con v ertible	into	New	Or dinary	Shar es	at	a	shar e	price	of	82.5p .	The	Compan y	ma y	r equir e	holders	to	
con v ert	i f ,	f or	at	least	20	consecutiv e	business	da ys,	the	a v er age	shar e	price	of	an	or dinary	shar e	in	the	Compan y	shal l	be	82.5p .	No	
pr emises	or	pr opert y	lease	liabili ties	ar e	being	acquir ed.	
F ol lowing	completion	of	the	acquisi tion	of	XT AQ	its	emplo y ees	wi l l	be	gr anted	an	aggr egate	of	up	to	1,393,938	options	to	subscribe	
f or	new	or dinary	shar es	in	the	Compan y ,	at	an	ex er cise	price	of	55p ,	the	closing	mid-mark et	price	of	an	or dinary	shar e	in	the	
Compan y	on	10	Mar ch	2010,	being	the	last	business	da y	prior	to	the	acquisition.	The	number	of	options	that	ma y	be	ex er cised	wil l	
depend,	on	a	sl iding	scale,	on	the	achiev ement	of	pr e-determined	XT AQ	r ev enue	perf ormance	in	the	12	months	ending	31	Mar ch	
2011	and	ar e	subject	to	a	f our	y ear	v esting	period	f r om	the	date	of	issue.	
	
The	B oar d	considers	that	the	acquisition	of	XT AQ	brings	together	two	companies	wi th	complementary	pr oducts	and	customer	bases.	 	
XT AQ’ s	Nuqleus	3D	pr oduct	pr o vides	r eal-time	data	captur e	and	addi tional	dashboar d	f unctionali t y	that	the	Compan y	had	been	
planning	to	dev elop	f or	i ts	own	pr oduct	r ange	during	2010.	The	combined	businesses’	activ e	cl ient	base	wil l	incr ease	to	about	40	
f r om	25	f or	eg,	pr o viding	incr eased	r ecurring	r ev enues	and	opportuni ties	f or	cr oss-sel ling.		I n	addition,	XT AQ’ s	sales,	dev elopment	
and	implementation	staf f	wil l	str engthen	the	Compan y ’ s	existing	team.
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 35 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
3.   Revenue
An	analysis	of	the	Gr oup’ s	r ev enue	is	as	f ol lows:
  Year ended  Year ended 
  31 January 31 January 
  2010 2009 
  £’000 £’000
Continuing operations:
Uni ted	Kingdom	 	 3,799 	 3,465
S outh	Af rica	 	 351 	 201
	 	
	 	 4,150 	 3,666
	 	
4. Operating segments
eg	solutions	plc	pr o vides	IT	and	softw ar e	support	services	b y	oper ating	two	distinct	companies	in	the	Uni ted	Kingdom	(“EGUK”)	and	
in	S outh	Af rica	(“EGS A ”).	Financial	inf ormation	is	r eported	to	the	B oar d	f or	both	companies	individual ly	wi th	r ev enue	and	oper ating	
pr ofi ts	spl i t	b y	geogr aphical	location.	S egment	r ev enue	comprises	of	sales	to	external	customers	and	ex cludes	finance	income.	
S egment	pr ofi t	r eported	to	the	B oar d	r epr esents	the	pr ofi t	earned	b y	each	segment	bef or e	the	al location	of	administr ativ e	
expenses,	finance	costs	and	tax.	
F or	the	purposes	of	assessing	segment	perf ormance	and	f or	determining	the	al location	of	r esour ces	between	segments,	the	B oar d	
r eviews	the	non-curr ent	assets	at tributable	to	each	segment	as	wel l	as	the	financial	r esour ces	a v ailable.	All	assets	and	l iabili ties	ar e	
al located	to	r eportable	segments.	I nf ormation	is	r eported	to	the	B oar d	of	Dir ectors	on	a	compan y	basis	as	management	bel iev e	that	
each	compan y	exposes	the	Gr oup	to	dif f ering	lev els	of	risk	and	r ew ar ds	due	to	local	economic	condi tions.	The	segment	pr ofi t	or	
loss,	segment	assets	and	segment	liabili ties	ar e	measur ed	on	the	same	basis	as	amounts	r ecognised	in	the	financial	statements,	as	
set	out	in	the	ac counting	pol icies.
U n d e r 	 t h e 	 t r a n s i t i o n a l 	 p r o v i s i o n s 	 o f 	 I F R S 	 8 , 	 t h e 	 G r o u p 	 h a s 	 r e - p r e s e n t e d 	 i t s 	 c o m p a r a t i v e 	 d i s c l o s u r e s 	 f o r 	 o p e r a t i n g 	 s e g m e n t s . 	 I n 	 p r e v i o u s	
y e a r s , 	 i n 	 a c c o r d a n c e 	 w i t h 	 I A S 	 1 4 	 ‘ S e g m e n t 	 R e p o r t i n g ’ , 	 s e g m e n t a l 	 a n a l y s i s 	 w a s 	 p r o v i d e d 	 o n 	 a 	 p r o d u c t 	 a n d 	 g e o g r a p h i c a l 	 b a s i s .	
During	the	y ear	the	Gr oup	had	two	customers	amounting	to	£1,308,000	in	total	that	individual ly	made	up	mor e	than	10%	of	
r ev enues	gener ated.	
S egment	inf ormation	about	these	companies	is	pr esented	below .
 UK SA Group
 31.01.10 31.01.09 31.01.10 31.01.09 31.01.10 31.01.09
 £’000 £’000 £’000 £’000 £’000 £’000
Revenue
External	r ev enue	 3,799 	 3,465	 351 	 201	 4,150 	 3,666
I nter -segment	r ev enue	 145 	 165	 61 	 128	 —	 —
	 	 	 	 	 	
T otal	r ev enue	 3,944 	 3,630	 412 	 329	 4,150 	 3,666
	 	 	 	 	 	
Finance	income	 1	 39	 —	 —	 1	 39
	 	 	 	 	 	
Pr ofi t/(loss)	bef or e	T ax	 153 	 (492)	 (69)	 (278)	 99 	 (753)
	 	 	 	 	 
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 36
Heading
17603	 27/04/2010	 Proof	7
4. Operating segments continued
Other segment information
 UK SA Group
 31.01.10 31.01.09 31.01.10 31.01.09 31.01.10 31.01.09
 £’000 £’000 £’000 £’000 £’000 £’000
T otal	assets	 3,326 	 3,005	 304 	 185	 2,875 	 2,584
	 	 	 	 	 	
T otal	liabili ties	 (1,347) 	 (1,211) (832) 	 (683)	 (1,423) 	 (1,278)
	 	 	 	 	 	
Net assets/(liabilities) 	 1,979 	 1, 794	 (528) 	 (498)	 1,452 	 1,306
	 	 	 	 	 	
Capi tal	expendi tur e
Pr opert y ,	plant	and	equipment	 18 	 51	 1	 3	 19 	 54
I ntangible	assets	 568 	 528	 —	 —	 568 	 528
Depr eciation	 33 	 41	 9	 21	 42 	 62
Amortisation	 297 	 236	 —	 —	 297 	 236
	 	 	 	 	 	
5. Profit/(loss) from operations
This	is	stated	after	char ging/cr edi ting:  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
Net	f or eign	ex change	losses	 	 10 	 9
R esear ch	and	dev elopment	costs	expensed	 	 520 	 704
(Loss)/pr ofi t	on	disposal	of	pr opert y ,	plant	and	equipment	 	 1	 (34)
Amortisation	of	dev elopment	expendi tur e	 	 297 	 236
Depr eciation
—	owned	assets	 	 42 	 63
Oper ating	leases	 	 216 	 161
	 	
6. Auditors’ remuneration
The	Gr oup	paid	the	f ol lowing	amounts	to	i ts	A udi tors	in	r espect	of	the	audi t	of	the	financial	statements	and	f or	other	services	
pr o vided	to	the	Gr oup .
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
A udi t	of	financial	statements
				B ak er	Ti l ly	 	 35 	 5
				Ernst	&	Y oung	 	 9	 25
	 	
					 	 44 	 30
	 	
Other	f ees	to	A udi tors
Local	statutory	audi t	f or	subsidiaries
Charles	Orbach	 	 8	 6
Ernst	&	Y oung	 	 —	 7
T axation	services
B ak er	Ti l ly	 	 15 	 7
Ernst	&	Y oung	 	 19 	 8
Other	services
B ak er	Ti l ly	 	 —	 2
Ernst	&	Y oung	 	 12 	 19
	 	
					 	 54 	 49
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 37 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
7. Staff costs and Directors’ emoluments 
The	a v er age	monthly	number	of	emplo y ees	during	the	y ear	w as	made	up	as	f ol lows:
  Year ended  Year ended
  31 January 31 January
  2010 2009
  Number Number
I mplementation	and	tr aining	services	 	 13 	 10
S oftw ar e	Support	and	Dev elopment	 	 16 	 18
Sales	and	Mark eting	 	 5	 6
Management	and	Administr ation	 	 4	 8
	 	
	 	 38 	 42
	 	
The	aggr egate	r emuner ation	f or	the	abo v e	persons	comprised:
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
W ages	and	salaries	 	 2,213 	 2,198
S ocial	securi t y	costs	 	 234 	 242
Other	pension	costs		 	 145 	 147
	 	
	 	 2,592 	 2,587
	 	
I ncluded	in	w ages	and	salaries	is	a	total	expense	of	Shar e-based	P a yments	of	£0.04m	(2009:	£0.03m).
Dir ectors’	emoluments
  2010 2009
  £’000 £’000
Emoluments	 	 367 	 402
Money	pur chase	pension	contributions	 	 28 	 31
	 	
T otal	 	 395 	 433
	 	
    Total  Total 
 Salary and fees Benefits Other 2010 2009
 £’000 £’000 £’000 £’000 £’000
RP	B ak er -B ates	 38	 —	 —	 38 	 20
EA	Gooch	 270	 2	 26	 298 	 255
V	P arylo
(r esigned	20	Mar ch	2009)	 14	 —	 2	 16 	 81
A	McR ae	 15	 —	 —	 15 	 15
P	B ir d	(r esigned	19	Ma y	2008)	 —	 —	 —	 —	 31
	 	 	 	 	
	 337	 2	 28	 367 	 402
	 	 	 	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 38
Heading
17603	 27/04/2010	 Proof	7
7. Staff costs and Directors’ emoluments continued
The	pension	contributions	pa y able	b y	the	Gr oup	in	r espect	of	each	Dir ector	during	the	y ear	wer e:
  2010 2009
  £’000 £’000
EA	Gooch	 	 26 	 21
P	B ir d	(r esigned	19	Ma y	2008)	 	 —	 3
V	P arylo	(r esigned	20	Mar ch	2009)	 	 2	 7
	 	
T otal	 	 28 	 31
	 	
Key Management
The	K ey	Management	of	the	Gr oup	consists	of	the	eg solutions	plc	B oar d	Dir ectors.
The	r emuner ation	of	K ey	Management	is	set	out	below .	None	of	the	eg solutions	plc	B oar d	Dir ectors	hold	an y	shar e	options.	
Key Management Compensation
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
W ages	and	salaries	 	 367 	 402
S ocial	securi t y	costs	 	 50 	 47
Other	pension	costs		 	 28 	 31
	 	
	 	 2,592 	 2,587
	 	
8. Finance income
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
I nter est	on	bank	deposits	 	 1	 39
	 	
9. Taxation
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
Curr ent	tax:
Uni ted	Kingdom	 	 (50)	 (119)
T ax	in	r espect	of	prior	y ears	 	 18 	 17
	 	
	 	 (32)	 (102)
Def err ed	tax:
Origination	and	r ev ersal	of	tempor ary	di f f er ences	 	 72 	 30
T ax	in	r espect	of	prior	y ears	 	 (32)	 39
	 	
T ax	at tributable	to	the	Gr oup	and	i ts	subsidiaries	 	 8	 (33)
	 	
Domestic	income	tax	is	calculated	at	28%	(2009:	28%)	of	the	estimated	assessable	pr ofi t	f or	the	y ear .
T axation	f or	other	jurisdictions	is	calculated	at	the	r ates	pr ev ailing	in	the	r espectiv e	jurisdictions.	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 39 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
9. Taxation continued
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
The	char ge/(cr edi t)	f or	the	y ear	can	be	r econci led	to	the	loss	per	the 	
Statement	of	Compr ehensiv e	I ncome	as	f ol lows:
Pr ofi t/(loss)	bef or e	tax	 	 99 	 (753)
	 	
T ax	at	the	domestic	income	tax	r ate	28%	(2009:	28%)	 	 28 	 (211)
T ax	ef f ects	of	expenses	that	ar e	not	deductible	in	determining	taxable	pr ofi t	 	 21 	 	24
Other	tempor ary	timing	di f f er ences	 	 —	 1
R esear ch	and	dev elopment	 	 (42)	 (86)
Mar ginal	r ate	of	tax	 	 —	 105
Prior	y ear	i tems	 	 (14)	 56
Mo v ement	in	unpr o vided	def err ed	tax	 	 15 	 78
Ef f ect	of	di f f er ent	tax	r ates	of	subsidiaries	oper ating	in	other	jurisdictions	 	 —	 	—
	 	
T ax	char ge/(cr edi t)	 	 8	 (33)
	 	
Ef f ectiv e	tax	r ate	f or	the	y ear	 	 8% 	 (4%)
10. Dividends
I n	r espect	of	the	curr ent	y ear ,	the	Dir ectors	pr opose	that	no	dividend	wi l l	be	paid	to	shar eholders	(2009:	£ni l).
11.  Earnings/(loss) per ordinary share
From continuing operations
  Year ended  Year ended
  31 January 31 January
  2010 2009
W eighted	a v er age	number	of	shar es	in	issue	used	f or	calculating	di luted	earnings	per	shar e	 14,293,847 	 14 ,293,847
W eighted	a v er age	number	of	shar es	held	b y	the	Emplo y ee	B enefi t	T rust	 	 1,166,470 	 1,176,470
W eighted	a v er age	number	of	shar es	f or	calculating	basic	earnings	per	shar e	 	 13,127,377 	 13,117 ,377
  Year ended  Year ended
  31 January 31 January
  2010 2009
  £’000 £’000
B asic	earnings/(loss)	at tributable	to	equit y	shar eholders	 	 91 	 (720)
  Year ended  Year ended
  31 January 31 January
  2010 2009
B asic	earnings/(loss)	per	shar e	 	 0.7p 	 (5.5p)
Di luted	earnings/(loss)	per	shar e	 	 0.6p 	 (5.5p)
EPS	has	been	calculated	using	the	f ol lowing	methodology:
B asic	earnings	per	shar e	ar e	calculated	b y	dividing	the	earnings	at tributable	to	or dinary	shar eholders	b y	the	number	of	weighted	
a v er age	or dinary	shar es	during	the	period.	The	number	of	shar es	ex cludes	shar es	held	b y	an	Emplo y ee	B enefi t	T rust	(see	note	27	
Shar e-based	P a yments).
F or	diluted	earnings	per	shar e,	the	number	of	or dinary	shar es	in	issue	is	adjusted	to	assume	con v ersion	of	al l	di lutiv e	potential	
or dinary	shar es.	These	r epr esent	shar e	options	gr anted	to	emplo y ees.
When	the	B asic	EPS	is	a	negativ e	v alue,	the	ef f ects	of	anti-di lutiv e	potential	or dinary	shar es	ar e	ignor ed	in	calculating	di luted	EPS .
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 40
Heading
17603	 27/04/2010	 Proof	7
12. Group and Company — intangible assets 
   Development
   costs
   £’000
Cost 
A t	1	F ebruary	2008	 	 	 1,177
Acquisi tions	–	internal ly	dev eloped	 	 	 528
	 	
A t	1	F ebruary	2009	 	 	 1, 705
Acquisi tions	–	internal ly	dev eloped	 	 	 568
	 	
At 31 January 2010   2,273
	 	
Amortisation and impairment
A t	1	F ebruary	2008	 	 	 35
Amortisation	f or	the	y ear		 	 	 236
	 	
A t	1	F ebruary	2009	 	 	 271
Amortisation	f or	the	y ear	 	 	 297
	 	
At 31 January 2010   568
	 	
Carrying amount
At 31 January 2010   1,705
	 	
A t	31	January	2009	 	 	 1,434
	 	
13. Group — property, plant and equipment 
 Computer and Fixtures and Motor Leasehold 
 office equipment fittings vehicles improvements Total
 £’000 £’000 £’000 £’000 £’000
Cost 
A t	1	F ebruary	2008	 444	 108	 6	 —	 558
Additions	 45	 5	 —	 4	 54
Disposals	 (20)	 (95)	 —	 —	 (115)
	 	 	 	 	
A t	1	F ebruary	2009	 469	 18	 6	 4	 497
Addi tions	 19	 —	 —	 —	 19
Disposals	 (4)	 —	 —	 —	 (4)
T r anslation	di f f er ences	 8	 —	 —	 —	 8
	 	 	 	 	
At 31 January 2010 492 18 6 4 520
	 	 	 	 	
Accumulated depreciation
A t	1	F ebruary	2008	 370	 66	 5	 —	 441
Depr eciation	char ge	f or	the	y ear	 58	 4	 1	 —	 63
Disposals	 (16)	 (65)	 —	 —	 (81)
	 	 	 	 	
A t	1	F ebruary	2009	 412	 5	 6	 —	 423
Depr eciation	char ge	f or	the	y ear	 39	 2	 —	 1	 42
Disposals	 (2)	 —	 —	 —	 (2)
T r anslation	di f f er ences	 7	 —	 —	 —	 7
	 	 	 	 	
At 31 January 2010 456 7 6 1 470
	 	 	 	 	
Net book value
At 31 January 2010 36 11 — 3 50
A t	31	January	2009	 57	 13	 —	 4	 74
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 41 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
14. Company — property, plant and equipment 
 Computer and Fixtures and Motor Leasehold 
 office equipment fittings vehicles improvements Total
 £’000 £’000 £’000 £’000 £’000
Cost
A t	1	F ebruary	2008	 398	 108	 6	 —	 512
Additions	 42	 5	 —	 4	 51
Disposals	 (20)	 (95)	 —	 —	 (115)
	 	 	 	 	
A t	1	F ebruary	2009	 420	 18	 6	 4	 448
Addi tions	 18	 —	 —	 —	 18
Disposals	 (4)	 —	 —	 —	 (4)
	 	 	 	 	
At 31 January 2010 434 18 6 4 462
	 	 	 	 	
Accumulated depreciation
A t	1	F ebruary	2008	 354	 66	 5	 —	 425
Depr eciation	char ge	f or	the	y ear	 36	 4	 1	 —	 41
Disposals	 (16)	 (65)	 —	 —	 (81)
	 	 	 	 	
A t	1	F ebruary	2009	 374	 5	 6	 —	 385
Depr eciation	char ge	f or	the	y ear	 31	 2	 —	 1	 34
Disposals	 (2)	 —	 —	 —	 (2)
	 	 	 	 	
At 31 January 2010 403 7 6 1 417
	 	 	 	 	
Net book value
At 31 January 2010 31 11 — 3 45
A t	31	January	2009	 46	 13	 —	 4	 63
15. Subsidiaries
Detai ls	of	the	Gr oup’ s	subsidiaries	at	31	January	2010	ar e	as	f ol lows:
  Place of Proportion of Proportion
  incorporation ownership of voting  
  (or registration) interest power held Principal
 Name of subsidiary  and operation % % activity 
eg	I nternational	Limi ted	 	 UK	 100	 100	 Dormant
eg	US A	I nc	 	 US A	 100	 100	 Dormant
eg	S olutions	EB T	Limited	 	 UK	 100	 100	 Dormant
eg	oper ations	management	(Pt y)	Limited	 	 S outh	Af rica	 100	 100	 Consultancy	
	 	 	 	 	 and	softw ar e
The	oper ating	costs	in	r elation	to	dormant	companies	ar e	incurr ed	thr ough	the	P ar ent	Compan y .
The	cost	of	in v estments	in	subsidiary	companies	is	£11	in	total	and	is	not	included	on	the	f ace	of	the	Statement	of	Financial	P osi tion	
due	to	r ounding.
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 42
Heading
17603	 27/04/2010	 Proof	7
16. Group — trade and other receivables
  2010 2009
  £’000 £’000
T r ade	r eceiv ables	 	 346 	 345
Less	pr o vision	f or	impairment	 	 —	 (2)
	 	
Net	tr ade	r eceiv ables	 	 346 	 343
Other	r eceiv ables	 	 6	 5
Pr epa yments	and	ac crued	income	 	 172 	 166
Dir ector ’ s	loan	 	 118 	 25
	 	
	 	 642 	 539
	 	
Ageing	analysis	of	tr ade	r eceiv ables	past	due	but	not	impair ed:
  2010 2009
  £’000 £’000
Up	to	30	da ys	o v er due	 	 2	 52
31-90	da ys	o v er due	 	 38 	 28
Ov er	91	da ys	o v er due	 	 59 	 23
17. Company — trade and other receivables
  2010 2009
  £’000 £’000
T r ade	r eceiv ables	 	 275 	 262
Less	pr o vision	f or	impairment	 	 —	 (2)
	 	
Net	tr ade	r eceiv ables	 	 275 	 260
Pr epa yments	and	def err ed	income	 	 134 	 160
Dir ector ’ s	loan	 	 118 	 25
	 	
	 	 527 	 445
	 	
Ageing	analysis	of	tr ade	r eceiv ables	past	due	but	not	impair ed:
  2010 2009
  £’000 £’000
Up	to	30	da ys	o v er due	 	 2	 52
31-90	da ys	o v er due	 	 38 	 28
Ov er	91	da ys	o v er due	 	 4	 23
18. Group and Company — inventories
  2010 2009
  £’000 £’000
Consumables	 	 18 	 17
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 43 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
19. Group — cash cash equivalents
  2010 2009
  £’000 £’000
Cash	at	bank	and	in	hand	 	 410 	 228
Short -term	deposi ts	 	 —	 34
	 	
	 	 410 	 262
	 	
The	Gr oup	has	a	£0.50m	o v er dr aft	f aci li t y	wi th	The	Co-oper ativ e	B ank	which	expir es	on	16	Mar ch	2011.	The	o v er dr aft	at tr acts	
inter est	at	3.25%	o v er	the	bank’ s	publ ished	base	r ate.
20. Company — cash and cash equivalents
  2010 2009
  £’000 £’000
Cash	at	bank	and	in	hand	 	 224 	 182
	 	
21. Group — trade and other payables
T r ade	and	other	pa y ables	ar e	as	f ol lows:
  2010 2009
  £’000 £’000
P a yments	on	ac count	 	 71 	 66
T r ade	pa y ables	 	 303 	 203
Other	tax	and	social	securit y	 	 176 	 217
Ac cruals	and	def err ed	income	 	 619 	 577
	 	
	 	 1,169 	 1,063
	 	
22. Company — trade and other payables
  2010 2009
  £’000 £’000
P a yments	on	ac count	 	 71 	 66
T r ade	pa y ables	 	 281 	 188
Other	tax	and	social	securit y	 	 160 	 208
Ac cruals	and	def err ed	income	 	 581 	 534
	 	
	 	 1,093 	 996
	 	
23. Obligations under operating leases 
The	Gr oup	has	enter ed	into	commer cial	leases	on	certain	pr operties	and	i tems	of	equipment.	These	leases	ha v e	an	a v er age	dur ation	
of	between	one	and	fiv e	y ears.	
Futur e	minimum	r entals	pa y able	under	non-cancel lable	oper ating	leases	ar e	as	f ol lows:
  2010 2009
  £’000 £’000
Expiring:
Not	later	than	one	y ear	 	 123 	 178
After	one	y ear	but	not	mor e	than	fiv e	y ears	 	 312 	 	455
	 	
	 	 435 	 633
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 44
Heading
17603	 27/04/2010	 Proof	7
24. Group — deferred tax
  2010 2009
  £’000 £’000
Analysis	f or	financial	r eporting	purposes:
Def err ed	tax	liabili ties	 	 477 	 395
Def err ed	tax	assets	 	 (223) 	 (180)
	 	
Net position at 31 January 	 	 254 	 215
	 	
Unpr o vided	def err ed	tax	asset	 	 179 	 135
Due	wi thin	one	y ear	 	 (100) 	 —
Due	after	one	y ear	 	 354 	 215
	 	
	 	 254 	 215
	 	
The	mo v ement	in	the	y ear	in	the	Gr oup’ s	net	def err ed	tax	posi tion	w as	as	f ol lows:
  2010 2009
  £’000 £’000
A t	1	F ebruary	 	 215 	 147
Char ge	to	income	f or	the	y ear	 	 72 	 29
Adjustment	in	r espect	of	prior	y ear	 	 (33)	 39
	 	
At 31 January 	 	 254 	 215
	 	
The	f ol lowing	ar e	the	major	def err ed	tax	liabili ties	and	assets	r ecognised	b y	the	Gr oup	and	the	mo v ements	ther eon	during	the	y ear:
   Accelerated tax 
     depreciation
 Deferred tax liabilities     £’000
A t	1	F ebruary	2008		 	 	 313
Char ge	to	income	f or	the	y ear	 	 	 82
	 	
A t	31	January	2009		 	 	 395
Char ge	to	income	f or	the	y ear	 	 	 76
Adjustment	in	r espect	of	prior	y ear	 	 	 6
	 	
At 31 January 2010 	 	 	 477
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 45 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
24. Group — deferred tax continued
  Property, 
  Plant and Share-based  
  equipment payments Tax losses Total
  £’000 £’000 £’000 £’000
Deferred tax assets
A t	1	F ebruary	2008	 	 —	 (4)	 (162)	 (166)
Cr edi t	to	income	f or	the	y ear	 	 —	 —	 (53)	 (53)
Adjustment	in	r espect	of	prior	y ear	 	 —	 —	 39	 39
	 	 	 	 	
A t	31	January	2009	 	 —	 (4)	 (176)	 (180)
Char ge/(cr edi t)	to	income	f or	the	y ear	 	 1	 (5)	 —	 (4)
Adjustment	in	r espect	of	prior	period	 	 (8)	 —	 (31)	 (39)
	 	 	 	 	
At 31 January 2010  (7) (9) (207) (223)
	 	 	 	 	
A t	the	r eporting	date,	the	Gr oup	has	unused	UK	tax	losses	of	£741,000	(2009:	£630,000)	a v ailable	f or	of f set	against	f utur e	pr ofi ts.	
A	def err ed	tax	asset	of	£207 ,000	(2009:	£176,000)	has	been	r ecognised	in	r espect	of	such	losses	wher e	r eal isation	of	the	r elated	
tax	benefi t	thr ough	f utur e	taxable	pr ofi ts	is	pr obable.
I n	addition	the	Gr oup	has	o v erseas	tax	losses	in	S outh	Af rica	of	£638,000	(2009:	£430,000),	a	def err ed	tax	asset	of	£179,000	(2009:	
£135,000)	has	not	been	r ecognised	due	to	uncertaint y	of	f utur e	pr ofi ts.
25. Company — deferred tax
  2010 2009
  £’000 £’000
Analysis	f or	financial	r eporting	purposes:
Def err ed	tax	liabili ties	 	 477 	 395
Def err ed	tax	assets	 	 (223) 	 (180)
	 	
Net position at 31 January 	 	 254 	 215
	 	
The	mo v ement	in	the	y ear	in	the	Compan y ’ s	net	def err ed	tax	posi tion	w as	as	f ol lows:
  2010 2009
  £’000 £’000
A t	1	F ebruary		 	 215 	 205
Char ge	to	income	f or	the	y ear	 	 72 	 29
Adjustment	in	r espect	of	prior	y ear	 	 (33)	 (19)
	 	
At 31 January 	 	 254 	 215
	 	
Due	wi thin	one	y ear	 	 (100) 	 —
Due	after	one	y ear	 	 354 	 215
	 	
	 	 254 	 215
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 46
Heading
17603	 27/04/2010	 Proof	7
25. Company — deferred tax continued
T h e 	 f o l l o w i n g 	 a r e 	 t h e 	 m a j o r 	 d e f e r r e d 	 t a x 	 l i a b i l i t i e s 	 a n d 	 a s s e t s 	 r e c o g n i s e d 	 b y 	 t h e 	 C o m p a n y 	 a n d 	 t h e 	 m o v e m e n t s 	 t h e r e o n 	 d u r i n g 	 t h e 	 y e a r :
   Accelerated
   tax depreciation
Deferred tax liabilities   £’000
A t	1	F ebruary	2008	 	 	 313
Char ge	to	income	f or	the	y ear	 	 	 82
	 	
A t	31	January	2009	 	 	 395
Char ge	to	income	f or	the	y ear	 	 	 76
Adjustment	in	r espect	of	prior	y ear	 	 	 6
	 	
At 31 January 2010   477
	 	
  Property, 
  plant and Share based  
  equipment payments Tax losses Total
  £’000 £’000 £’000 £’000
Deferred tax assets
A t	1	F ebruary	2008	 	 —	 (4)	 (104)	 (108)
Char ge	to	income	f or	the	y ear	 	 —	 —	 (53)	 (53)
Adjustment	in	r espect	of	prior	y ear	 	 —	 —	 (19)	 (19)
	 	 	 	 	
A t	31	January	2009	 	 —	 (4)	 (176)	 (180)
Char ge/(cr edi t)	to	income	f or	the	y ear	 	 1	 (5)	 —	 (4)
Adjustment	in	r espect	of	prior	y ear	 	 (8)	 —	 (31)	 (39)
	 	 	 	 	
At 31 January 2010  (7) (9) (207) (223)
	 	 	 	 	
A t	the	r eporting	date,	the	Compan y	has	unused	tax	losses	of	£741,000	(2009:	£630,000)	a v ailable	f or	of f set	against	f utur e	pr ofi ts.	
A	def err ed	tax	asset	of	£207 ,000	(2009:	£176,000)	has	been	r ecognised	in	r espect	of	such	losses	wher e	r eal isation	of	the	r elated	
tax	benefi t	thr ough	f utur e	taxable	pr ofi ts	is	pr obable.
26. Group and Company share capital 
  2010 2009
  £’000 £’000
A uthorised
50,000,000	or dinary	shar es	of	1p	each	 	 500 	 500
	 	
  £’000 £’000
Al lot ted	issued	and	f ul ly	paid
14 ,293,847	or dinary	shar es	of	1p	each	 	 143 	 143
	 	
Ther e	wer e	no	mo v ements	in	the	shar e	capi tal	of	the	Compan y	in	either	the	2010	or	2009	r eporting	periods.
The	Compan y	has	one	class	of	or dinary	shar es	which	carry	no	right	to	fix ed	income.	During	the	y ear	ended	31	January	2010,	the	
Gr oup	gr anted	439,500	shar e	options	(2009:	622,000)	under	the	Gr oup’ s	shar e	option	plan	(note	27).
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 47 eg	solutions	plc 	 www .eguk.co .uk
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27. Share-based Payments
Equity-settled Share Option Plan
The	Gr oup	plan	pr o vides	f or	a	gr ant	price	equal	to	the	a v er age	quoted	mark et	price	of	the	Gr oup	shar es	on	the	date	of	gr ant.	The	
v esting	period	is	f our	y ears.	If	options	r emain	unex er cised	after	a	period	of	ten	y ears	f r om	the	date	of	gr ant,	the	options	expir e.
Furthermor e,	options	ar e	f orf ei ted	i f	the	emplo y ee	lea v es	the	Gr oup	bef or e	the	options	v est.
 2010 2009
   Weighted  Weighted 
   average exercise  average exercise 
  Options price (£) Options price (£)
Outstanding	at	1	F ebruary	 	 849,500 0.29 	 420,000	 0.48
Gr anted	during	the	y ear	 	 439,500 0.18 	 622,000	 0.22
F orf ei ted	during	the	y ear	 	 (336,500) 0.36 	 (192,500)	 0.47
Ex er cised	during	the	y ear	 	 (60,000) 0.04 	 nil	 —
Expir ed	during	the	y ear	 	 nil —	 nil	 —
	 	 	 	 	
Outstanding	at	31	January		 	 892,500 0.37 	 849,500	 0.29
	 	 	 	 	
Ex er cisable	at	31	January		 	 160,000 0.04 	 nil	 —
	 	 	 	 	
The	options	outstanding	at	31	January	2010	had	an	ex er cise	price	between	3.5	pence	and	161.5	pence,	and	a	weighted	a v er age	
r emaining	contr actual	li f e	of	8.18	y ears	(2009:	8.15	y ears).
The	inputs	into	the	B lack - S choles	option	pricing	model	ar e	as	f ol lows:
  2010 2009
W eighted	a v er age	shar e	price	 	 £0.37 	 £0.53
W eighted	a v er age	ex er cise	price	 	 £0.23 	 £0.34
Expected	v olatili t y	 	 296% 	 259%
Expected	l i f e	 	 8 years 	 8	y ears
Risk -f r ee	r ate	 	 5.5% 	 5.5%
Expected	dividend	yield	 	 1.0% 	 1.0%
W eighted	a v er age	ex er cise	price	of	options	gr anted	during	the	y ear	 	 £0.18 	 £0.22
	 	
Expected	v olatili t y	w as	determined	b y	calculating	the	historical	v olatili t y	of	a	compar able	business,	prior	to	the	period	when	the	
Compan y ’ s	shar es	wer e	listed	on	the	aim	mark et.	V olatili t y	since	listing	has	been	calculated	using	the	dai ly	mid	mark et	shar e	price.	
The	expected	l i f e	used	in	the	model	has	been	adjusted,	based	upon	the	management ’ s	best	estimate	f or	the	ef f ects	of	non-
tr ansf er abili t y ,	ex er cise	r estrictions,	and	beha viour al	consider ations.
Shar e	options	ar e	a v ailable	to	al l	emplo y ees	who	ha v e	completed	their	pr obation	period.
eg	solutions	plc	Emplo y ee	B enefi t	T rust	Limi ted	holds	1,116,470	or dinary	shar es	of	1p ,	being	8.2%	of	the	cal led	up	capi tal.	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 48
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28. Reconciliation of Group profit/(loss) before tax to net cash generated by/(consumed in) operations 
  2010 2009
  £’000 £’000
Pr ofi t/(loss)	bef or e	tax	 	 99 	 (753)
Adjustments	f or:
Depr eciation	of	pr opert y ,	plant	&	equipment	 	 42 	 62
(Pr ofi t)/loss	on	disposal	of	pr opert y ,	plant	&	equipment	 	 (1)	 31
Amortisation	of	intangible	assets	 	 297 	 236
Finance	income	 	 (1)	 (39)
Shar e	option	char ge	 	 39 	 27
	 	
Oper ating	cash	flows	bef or e	mo v ements	in	working	capi tal	 	 475 	 (436)
(I ncr ease)/decr ease	in	r eceiv ables	 	 (91)	 258
(I ncr ease)/decr ease	in	stock	 	 (1)	 7
I ncr ease	in	pa y ables	 	 105 	 94
	 	
Cash generated by/(consumed in) operations 	 	 488 	 (77)
	 	
29. Reconciliation of Company profit/(loss) before tax to net cash generated by/(consumed in) operations 
  2010 2009
  £’000 £’000
Pr ofi t/(loss)	bef or e	tax	 	 151 	 (492)
Adjustments	f or:
Depr eciation	of	pr opert y ,	plant	&	equipment	 	 34 	 40
(Pr ofi t)/loss	on	disposal	of	pr opert y ,	plant	&	equipment	 	 (2)	 31
Amortisation	of	intangible	assets	 	 297 	 236
Finance	income	 	 (1)	 (39)
Shar e	option	char ge	 	 39 	 27
	 	
Oper ating	cash	flows	bef or e	mo v ements	in	working	capi tal	 	 518 	 (197)
(I ncr ease)/decr ease	in	r eceiv ables	 	 (233) 	 236
(I ncr ease)/decr ease	in	stock	 	 (1)	 7
I ncr ease/(decr ease)	in	pa y ables	 	 97 	 (53)
	 	
Cash generated by/(consumed in) operations 	 	 381 	 (7)
	 	
30. Group — financial instruments and related disclosures
The	main	financial	risks	f aced	b y	the	Gr oup	r elate	to	the	risk	of	def aul t	to	financial	tr ansactions	b y	customers,	a v ailabili t y	of	f unds	to	
meet	the	Gr oup’ s	needs	and	fluctuations	in	f or eign	ex change	r ates.	These	risks	ar e	managed	as	described	below .	
An	explanation	of	the	Gr oup’ s	financial	instrument	risk	management	objectiv es	and	pol icies	ar e	set	out	in	the	Dir ectors	R eport	on	
pages	16	to	19.
P olicies	f or	managing	financial	risks	ar e	go v erned	b y	B oar d	appr o v ed	policies	and	pr ocedur es.	An y	pr oposed	changes	wil l	be	
consider ed	b y	the	B oar d	prior	to	such	changes	being	implemented.
The	k ey	risks	that	the	Gr oup	f aces	f r om	a	tr easury	perspectiv e	ar e	as	f ol lows:-
 Liquidity risk
Cash	flow	is	managed	on	a	dai ly ,	short -term	and	longer -term	basis	and	management	is	ther ef or e	able	to	ensur e	that	the	Gr oup	has	
suf ficient	cash	or	f aci li ties	to	meet	al l	its	commi tments.	The	Gr oup	ensur es	that	ther e	is	suf ficient	cash	or	working	capital	f aci li ties	to	
meet	the	cash	r equir ements	of	the	Gr oup	f r om	the	curr ent	business	plan.
F or ecast	l iquidit y	is	r eviewed	weekly	b y	management.
The	Gr oup	has	an	agr eed	o v er dr aft	f aci li t y	to	the	16	Mar ch	2011.
B anking	co v enants	ar e	moni tor ed	on	a	weekly	basis	to	ensur e	that	ther e	ar e	no	curr ent	or	potential	f utur e	br eaches.	Ther e	ha v e	
been	no	br eaches	of	co v enants	during	the	r eporting	period	and	no	br eaches	ar e	f or eseen	o v er	the	next	12	months.
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 49 eg	solutions	plc 	 www .eguk.co .uk
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30. Group — financial instruments and related disclosures continued
 Market risk
Mark et	risk	includes	f or eign	curr ency	risk,	price	risk	and	inter est	r ate	risk.
Financial	instruments	af f ected	b y	mark et	risk	ar e	cash	and	cash	equiv alents.	The	f ol lowing	analysis,	r equir ed	b y	i f rs	7	‘Financial	
I nstruments:	Disclosur es’ ,	is	intended	to	i l lustr ate	the	sensi tivi t y	to	changes	in	mark et	v ariables	being	UK	inter est	r ates	and	f or eign	
ex change	risk.
 Foreign currency risk
The	Gr oup	is	exposed	to	minimal	f or eign	curr ency	risk	thr ough	tr ansactions	wi th	o v erseas	customers.
The	Gr oup	is	also	exposed	to	ex change	fluctuations	which	af f ect	the	v alue	of	its	o v erseas	subsidiary .
The	impact	on	the	Gr oup’ s	financial	instruments	f r om	f or eign	curr ency	v olatili t y	is	shown	in	the	sensi tivi t y	below .	
The	analysis	ex cludes	the	impact	of	mo v ement	in	mark et	v ariables	on	the	r etr anslation	of	o v erseas	net	assets	as	r equir ed	b y	IA S	21	
‘The	Ef f ects	of	Changes	in	F or eign	Ex change	R ates’ .	
The	sensi tivi t y	analysis	has	been	pr epar ed	on	the	basis	that	the	amount	of	net	assets	and	the	pr oportion	of	financial	instruments	in	
f or eign	curr encies	ar e	al l	constant.
It	should	be	noted	that	the	sensi tivi t y	analysis	r eflects	the	impact	on	income	and	equi t y	due	to	al l	financial	instruments	held	at	the	
r eporting	date.	It	does	not	r eflect	an y	change	in	r ev enue	or	costs	that	ma y	r esul t	f r om	changing	inter est	or	ex change	r ates.
The	f ol lowing	assumptions	wer e	made	in	calculating	the	sensi tivi t y	analysis:
	 > UK	inter est	r ates	ar e	f or ecast	to	incr ease	b y	1%
	 > S outh	Af rican	R and	wi l l	con v ert	at	14	r and	to	the	B ri tish	P ound.
Using	the	abo v e	assumptions	the	f ol lowing	table	shows	the	i l lustr ativ e	ef f ect	on	the	Gr oup	Statement	of	Compr ehensiv e	I ncome	and	
Equi t y	that	would	r esul t	f r om	changes	in	UK	inter est	r ates	and	in	ex change	r ates:
 2010 2009
  Income Equity Income Equity 
  gain/(loss) gain/(loss) gain/(loss) gain/(loss)
  £’000 £’000 £’000 £’000
Assets:
1%	I ncr ease	in	UK	inter est	r ates	 	 4 —	 3	 —
	 	
S outh	Af rican	R and	to	GBP	con v ert	at	14	(2009:	14)	 — (15)	 —	 (12)
	 	
 Interest rate risk
I nter est	r ate	risk	arises	f r om	cash	and	cash	equiv alents	and	is	not	consider ed	to	be	a	signi ficant	risk	f or	the	Gr oup .	The	only	inter est	
bearing	assets	r elate	to	cash	and	cash	equiv alents	exposed	to	a	floating	inter est	r ate.	Al l	other	assets	and	liabili ties	ar e	non	inter est	
bearing.	
 Price risk
The	Gr oup’ s	pr oducts	ar e	tai lor ed	to	r eal ise	benefi ts	f or	customers	and	to	meet	individual	r equir ements.	Prices	ar e	negotiated	wi th	
each	customer	on	the	basis	of	their	speci fication	of	the	pr oduct.
 Credit risk 
Cr edi t	risk	arises	f r om	cash	and	cash	equiv alents	and	tr ade	and	other	r eceiv ables.	With	eg’ s	exposur e	to	the	financial	services	sector	
detai led	r eporting	is	pr o vided	weekly	on	the	debt	posi tion	and	i f	r equir ed	the	Gr oup	wi l l	r esort	to	legal	action	to	r eco v er	an y	monies	
due	after	a	suf ficient	period	of	time.
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 50
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30. Group — financial instruments and related disclosures continued
 Capital risk 
The	Gr oup’ s	objectiv es	when	managing	capi tal	ar e	to	saf eguar d	the	Gr oup’ s	abili t y	to	continue	as	a	going	concern	and	oper ate	wi thin	
curr ent	a v ailable	f aci li ties.	This	is	r eviewed	b y	the	B oar d	on	a	monthly	basis.
The	Gr oup	manages	i ts	shar e	capi tal	and	r eserv es	as	i ts	Gr oup	capital.
The	f ol lowing	table	is	a	comparison	b y	category	of	the	carrying	amounts	and	the	f air	v alues	of	the	gr oup’ s	financial	instruments	at	
31	January	2010	and	31	January	2009.
  2010 2010 2009 2009
  Carrying Fair Carrying Fair
  value value value value
  £’000 £’000 £’000 £’000
Loans	and	r eceiv ables:
Cash	and	cash	equiv alents	 	 410 410 	 262	 262
T r ade	and	other	r eceiv ables	 	 470 470 	 373	 373
	 	 	 	 	
T otal	financial	assets	 	 880 880 	 635	 635
	 	 	 	 	
Other	financial	l iabili ties
T r ade	and	other	pa y ables	 	 303 303 	 203	 203
	 	 	 	 	
T otal	financial	l iabili ties	 	 303 303 	 203	 203
Net	financial	assets	 	 577 577 	 432	 432
	 	 	 	 	
  2010 2009
T r ade	and	other	r eceiv ables:  £’000 £’000
Financial	assets	in	the	scope	of	IA S	39	 	 470 	 373
Other	assets		 	 172 	 166
	 	
	 	 642 	 539
	 	
  2010 2009
T r ade	and	other	pa y ables:  £’000 £’000
Financial	l iabili ties	in	the	scope	of	IA S	39	 	 303 	 203
Other	liabili ties		 	 866 	 860
	 	
	 	 1,169 	 1,063
	 	
The	f ol lowing	table	shows	the	age	of	such	financial	assets	which	ar e	past	due	and	f or	which	no	impairment	f or	bad	or	doubtf ul	debts	
has	been	r aised.
  2010 2009
  £’000 £’000
P ast	due	b y	1-30	da ys	 	 2	 52
P ast	due	b y	31-90	da ys		 	 38 	 28
P ast	due	b y	91-180	da ys	 	 59 	 23
	 	
The	Gr oup	has	not	r aised	bad	or	doubtf ul	debt	pr o visions	against	these	amounts	as	they	ar e	consider ed	to	be	r eco v er able	based	on	
pr evious	tr ading	history .
The	Gr oup	has	not	pr o vided	an y	amount	f or	bad	debts	(2009:	£2,000).
The	Dir ectors	bel iev e	the	qual i t y	of	outstanding	r eceiv ables	which	ar e	nei ther	past	due	nor	impair ed	to	be	f ul ly	col lectible.	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 51 eg	solutions	plc 	 www .eguk.co .uk
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30. Group — financial instruments and related disclosures continued
 Fair value assumptions
T r ade	r eceiv ables,	tr ade	pa y ables	–	the	f air	v alue	of	these	i tems	appr o ximate	to	their	carrying	v alue.
Short -term	deposi ts	–	the	f air	v alue	of	short -term	deposi ts	o v er dr afts	appr o ximates	to	the	carrying	v alue	because	of	the	short	
maturi t y	of	these	instruments.
31. Company — financial instruments and related disclosures
  2010 2010 2009 2009
  Carrying Fair Carrying Fair
  value value value value
  £’000 £’000 £’000 £’000
Loans	and	r eceiv ables:
Cash	and	cash	equiv alents	 	 224 224 	 182	 182
T r ade	and	other	r eceiv ables	 	 393 891 	 891	 891
	 	 	 	 	
T otal	financial	assets	 	 1,374 1,374 	 1,073	 1,073
	 	 	 	 	
Other	financial	l iabili ties
T r ade	and	other	pa y ables	 	 281 281 	 188	 188
	 	 	 	 	
T otal	financial	l iabili ties	 	 281 281 	 188	 188
Net	financial	assets	 	 1,093 1,093 	 885	 885
	 	 	 	 	
  2010 2009
T r ade	and	other	r eceiv ables:  £’000 £’000
Financial	assets	in	the	scope	of	IA S	39	 	 393 	 891
Other	assets	 	 134 	 160
	 	
	 	 527 	 1,051
	 	
  2010 2009
T r ade	and	other	pa y ables:  £’000 £’000
Financial	l iabili ties	in	the	scope	of	IA S	39	 	 281 	 188
Other	liabili ties	 	 812 	 808
	 	
	 	 1,093 	 996
	 	
The	f ol lowing	table	shows	the	age	of	such	financial	assets	which	ar e	past	due	and	f or	which	no	impairment	f or	bad	or	doubtf ul	debts	
has	been	r aised.
  2010 2009
  £’000 £’000
P ast	due	b y	1-30	da ys	 	 2	 52
P ast	due	b y	31-90	da ys		 	 38 	 28
P ast	due	b y	91-180	da ys	 	 4	 23
	 	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 52
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31. Company — financial instruments and related disclosures continued
The	Compan y	has	not	r aised	bad	or	doubtf ul	debt	pr o visions	against	these	amounts	as	they	ar e	consider ed	to	be	r eco v er able	based	
on	pr evious	tr ading	history .
The	Compan y	has	not	pr o vided	an y	amount	f or	bad	debts	(2009:	£2,000).	On	gr ounds	of	material i t y	a	r econci liation	of	the	bad	debt	
pr o vision	has	not	been	pr o vided.
The	Dir ectors	bel iev e	the	qual i t y	of	outstanding	r eceiv ables	which	ar e	nei ther	past	due	nor	impair ed	to	be	f ul ly	col lectible.	
 Fair value assumptions
T r ade	r eceiv ables,	tr ade	pa y ables	–	the	f air	v alue	of	these	i tems	appr o ximate	to	their	carrying	v alue.
Short -term	deposi ts	and	borr owings	–	the	f air	v alue	of	short -term	deposi ts,	loans	and	o v er dr afts	appr o ximates	to	the	carrying	v alue	
because	of	the	short	maturi t y	of	these	instruments.
32. Pensions
Emplo y ees	ar e	of f er ed	membership	of	the	eg solutions	P ension	Plan,	a	defined	contribution	pension	arr angement.	The	cost	of	
contributions	to	the	scheme	is	char ged	to	the	Statement	of	Compr ehensiv e	I ncome	in	the	period	that	they	arise.	The	contributions	
to	the	scheme	f or	the	period	amounted	to	£145,000	(2009:	£147 ,000)	r epr esenting	3%-10%	of	pensionable	salaries.	The	amounts	
outstanding	at	the	y ear	end	wer e	£15,000	(2009:	£16,000).
33. Related party transactions
Trading transactions
During	the	y ear ,	Gr oup	companies	enter ed	into	the	f ol lowing	tr ansactions,	f or	the	pur chase	of	goods	and	services,	with	r elated	
parties	who	ar e	not	members	of	the	Gr oup .
  2010 2009
  £’000 £’000
R elated	parties	 	 —	 16
	 	
The	abo v e	v alue	r elates	to	a	single	part y	r elated	to	the	Gr oup	due	to	the	owner/manager	of	the	business	being	a	close	f amily	
member	(as	defined	under	IA S	24)	of	the	Chief	Ex ecutiv e	of	the	Gr oup .	Ther e	ar e	no	balances	outstanding	at	the	r eporting	date	or	
the	prior	y ear	r eporting	date	and	no	bad	debts	at	the	r eporting	date	or	the	prior	y ear	r eporting	date.
A	Dir ector ’ s	loan	of	£118,000	(2009:	£25,000)	w as	due	f r om	EA	Gooch	at	31	January	2010.	The	loan	is	inter est	f r ee	and	the	
maximum	amount	outstanding	during	the	y ear	w as	£118,000	(2009:	£25,000).	EA	Gooch	r epaid	£25,000	in	Mar ch	2010	and	the	
r emaining	balance	wi l l	be	r epaid	in	f ul l	b y	31	January	2011.
I n	the	or dinary	course	of	business,	sales	and	pur chases	of	services	tak e	place	between	EGUK	and	EGS A.	Sales	of	consultancy	and	
management	services	f r om	EGUK	to	EGS A	total led	£145,000	(2009:	£165,000).	Sales	of	softw ar e	services	f r om	EGS A	to	EGUK	
total led	£60,000	(2009:	£115,000).	
A t	31	January	2010	EGUK	had	a	balance	r eceiv able	f r om	EGS A	of	£757 ,000	(2009:	£606,000).	This	inter	compan y	loan	is	inter est	
f r ee	and	has	no	fix ed	r epa yment	date.	
Notes	to	the	Gr oup	Financial	Statements	continued
f or	the	y ear	ended	31	January	2010 53 eg	solutions	plc 	 www .eguk.co .uk
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To the holders of ordinary shares
Notice	is	her eb y	giv en	that	the	annual	gener al	meeting	of	the	Compan y	wil l	be	held	at	the	of fices	of	TL T	S olici tors,	S ea	Containers	House,	
20	Upper	Gr ound,	B lackf riars	B ridge,	London,	SE1	9LH	on	W ednesda y	26	Ma y	2010	at	10.30	am,	f or	the	f ol lowing	purposes	and	i f	thought	
fi t,	appr o v e	the	f ol lowing	r esolutions:
As Ordinary business
1.	 Tha t	the	Dir ectors’	R eport	and	 the	annual	r eport	and	ac counts	f or	the	y ear	ended	31	January	2010	be	adopted	and	appr o v ed.
2.		 Tha t	the	Dir ectors’	r emuner ation	f or	the	y ear	ended	31	January	201 0	be	appr o v ed.
3.	 Tha t	B ak er	Til ly	UK	A udi t	LLP	b e	appointed	as	A udi tors	and	the	Dir ectors	be	authorised	to	fix	their	r emuner ation.
As Ordinary resolution
4 .	 Tha t	the	Dir ectors	of	the	Compan y	be	gener al ly	and	uncondi tional ly	authorised	(without	pr ejudice	to	al l	subsisting	authori ties)	
pursuant	to	section	549,	551	and	559	of	the	Companies	Act	2006	to	ex er cise	al l	the	powers	of	the	Compan y	to	al lot	al l	the	
authorised	but	unissued	shar es	in	the	capital	of	the	Compan y	(being	r elev ant	securi ties	wi thin	the	meaning	of	section	549(1)-(3),	
551(1)	and	559	of	the	said	act),	such	authori t y	to	expir e	at	the	conclusion	of	the	next	annual	gener al	meeting	of	the	Compan y	or ,	i f	
earl ier ,	on	the	expiry	of	15	months	f r om	the	passing	of	this	r esolution,	sa v e	that	the	Compan y	ma y	mak e	of f ers	or	agr eements	
bef or e	such	expiry	which	would	or	might	r equir e	r elev ant	securi ties	to	be	al lot ted	after	such	expiry	and	the	Dir ectors	ma y	al lot	
r elev ant	securi ties	in	pursuance	of	such	an	of f er	or	agr eement	as	i f	the	authori t y	conf err ed	ther eb y	had	not	expir ed.
As Special resolution
5.	 Tha t	the	Dir ectors	of	the	Compan y	be	empower ed	pursuant	to	section	570	to	573	of	the	Companies	Act	2006	to	al lot	f or	cash	equi t y	
securi ties	(as	defined	f or	the	purposes	of	section	560	to	568	and	570	to	577	of	the	said	Act)	as	i f	section	561(1)	did	not	apply	to	an y	
such	al lotment	pr o vided	that	the	power	conf err ed	b y	this	r esolution	shal l	be	l imi ted	to	the	al lotment	of	equi t y	securi ties	(a)	up	to	an	
aggr egate	nominal	amount	of	£14 ,294	being	appr o ximately	10%	of	the	Compan y ’ s	issued	shar e	capi tal	or	(b)	in	connection	wi th	an	
of f er	of	equi t y	securi ties	b y	w a y	of	rights	to	the	holders	of	existing	shar es	in	pr oportion	(as	nearly	as	ma y	be)	to	their	r espectiv e	
holdings	of	or dinary	shar es	on	a	r ecor d	date	fix ed	b y	the	Dir ectors	but	subject	to	such	ex clusions	or	other	arr angements	as	the	
Dir ectors	ma y	consider	necessary	or	expedient	to	deal	wi th	an y	legal	or	pr actical	pr oblems	under	the	la ws	or	the	r equir ements	of	
an y	r egulatory	body	or	an y	stock	ex change	in	an y	terri tory	or	in	connection	with	f r actional	enti tlements	or	otherwise	howsoev er ,	
such	power	to	expir e	at	the	conclusion	of	the	next	annual	gener al	meeting	of	the	Compan y	or ,	i f	earl ier ,	on	the	expiry	of	15	months	
f r om	the	passing	of	this	r esolution,	sa v e	that	the	Compan y	ma y	mak e	of f ers	or	agr eements	bef or e	such	expiry	which	would	or	might	
r equir e	equi t y	securi ties	to	be	al lot ted	after	such	expiry	and	the	Dir ectors	ma y	al lot	equi t y	securi ties	in	pursuance	of	such	an	of f er	or	
agr eement	as	i f	the	power	conf err ed	ther eb y	had	not	expir ed.
6.	 T o	a uthorise	the	Compan y	gener al ly	and	uncondi tional ly ,	pursuant	t o	section	693(1)	and	701	of	the	Companies	Act	2006,	to	mak e	
mark et	pur chases	(as	defined	in	section	693	of	the	said	act)	of	up	to	1,429,385	or dinary	shar es	of	1p	each	in	the	capi tal	of	the	
Compan y	on	such	terms	and	in	such	manner	as	the	Dir ectors	of	the	Compan y	ma y	f r om	time	to	time	determine,	pr o vided	that	the	
amount	paid	f or	each	shar e	(ex clusiv e	of	expenses)	shal l	not	be	mor e	than	5%	abo v e	the	a v er age	of	the	middle	mark et	quotation	
f or	the	Compan y ’ s	or dinary	shar es	as	deriv ed	f r om	the	Daily	Of ficial	List	of	London	Stock	Ex change	plc	f or	the	fiv e	business	da ys	
bef or e	the	pur chase	is	made,	and	in	an y	ev ent	not	less	than	1p	per	or dinary	shar e;	and	the	authori t y	her ein	contained	shall	expir e	at	
the	conclusion	of	the	next	annual	gener al	meeting	of	the	Compan y	or	15	months	f ol lowing	the	passing	of	this	R esolution,	whichev er	
is	the	first	to	oc cur ,	pr o vided	that	the	Compan y	ma y ,	bef or e	such	expiry ,	mak e	a	contr act	to	pur chase	i ts	own	shar es	which	would	or	
might	be	ex ecuted	whol ly	or	partly	after	such	expiry ,	and	the	Compan y	ma y	mak e	a	pur chase	of	i ts	own	shar es	in	pursuant	of	such	
contr act	as	i f	the	authori t y	her eb y	conf err ed	had	not	expir ed.
B y	or der	of	the	B oar d
S ecr etary
23	Apri l	2010	
Notice	of	Meeting
	 Annual 	 R eport	 &	 Ac counts	2010 	 www .eguk.co .uk 54
Heading
17603	 27/04/2010	 Proof	7
Shar eholder	Notes
	 55 eg	solutions	plc 	 www .eguk.co .uk
Our Business Our Governance Our Accounts
17603	 27/04/2010	 Proof	7
F or	use	at	the	2010	annual	gener al	meeting	of	the	Compan y	to	be	held	at	the	of fices	of	TL T	S olici tors,	S ea	Containers	House,	20	Upper	
Gr ound,	B lackf riars	B ridge	on	W ednesda y	26	Ma y	2010	at	10.30	am.
I/W e	 ...............................................................................................................................................................................................
(f ul l	name	in	block	capi tals)
of	...................................................................................................	(addr ess)		 .................................................................................
being	a	member/members	of	eg	solutions	plc	her eb y	appoint	the	Chairman	of	the	meeting
or*	 ..................................................................................................................................................................................................
as	m y/our	pr o xy	to	v ote	f or	me/us	on	m y/our	behalf	at	the	annual	gener al	meeting	of	the	Compan y	to	be	held	on	26	Ma y	2010	and	at	
an y	adjournment	ther eof .	I/W e	dir ect	m y/our	pr o xy	to	v ote	in	r espect	of	the	r esolutions	set	out	in	the	notice	of	annual	gener al	meeting	
as	f ol lows:
o 	Please	tick	her e	i f	y ou	ar e	appointing	mor e	than	one	pr o xy .
Please	indicate	wi th	an	X	in	the	space	below	how	y ou	wish	y our	pr o xy	to	v ote	on	the	r esolutions	set	out	in	the	notice	con v ening	the	
annual	gener al	meeting.	If	no	indication	is	giv en,	y our	pr o xy	ma y	v ote	or	abstain	f r om	v oting	as	he/she	thinks	fi t.
RESOLUTIONS	 F or	 Against	 Abstain
1.	 That	the	Dir ec tors’	R eport	and	th e	annual	r eport	and	ac counts	f or	the	y ear 	
	 ended	31	Janu ary	2010	be	adop ted	and	appr o v ed.	 	 	
2.	 That	the	Dir ec tors’	R emuner ation 	f or	the	y ear	ended	31	January	201 0	be	appr o v ed.	 	 	
3.		 That	B ak er	Ti l l y	UK	A udi t	LLP	be 	appointed	as	A udi tors	and	the	Dir ec tors	be	authorised	
	 to	fix	their	r emuner ation.	
4 .	 T o	authorise	D ir ectors	to	al lot	un issued	shar es.	 	 	
5.	 T o	empower	the	Dir ectors	to	al lo t	equi t y	securi ties	f or	cash.	 	 	
6.	 T o	authorise	th e	Compan y	to	ma k e	mark et	pur chases	of	i ts	shar es.	 	 	
Dated		 ............................................................................ 2010
Member ’ s	signatur e	 ..........................................................................................................................................................................
*		 T o	appoint	as	a	pr o xy	a	person	other	than	the	Chairman	of	the	meeting	insert	the	f ul l	name	in	the	space	pr o vided.	T o	appoint	mor e	
than	one	pr o xy	y ou	ma y	photocop y	this	f orm.	Please	indicate	the	pr o xy	holder ’ s	name	and	the	number	of	shar es	in	r elation	to	which	
they	ar e	authorised	to	act	as	y our	pr o xy	(which,	in	aggr egate,	should	not	ex ceed	the	number	of	shar es	held	b y	y ou).	Please	also	
indicate	if	the	pr o xy	instruction	is	one	of	mul tiple	instructions	being	giv en.	Al l	f orms	must	be	signed	and	should	be	r eturned	together	in	
the	same	en v elope.	A	pr o xy	need	not	be	a	member	of	the	Compan y .
Notes
a.	 A	memb er	of	the	Co mpan y	is	enti tled	to	app oint	a	pr o xy	to	ex er cise	al l	or	an y	of	his	rights	to 	at tend,	speak	and	v ote	at	a	gener al	meeting	of	the	Compan y .	A	member	ma y	
appoint	mor e	than	one	pr o xy ,	pr o vided	that	each	pr o xy	is	appointed	to	ex er cise	the	rights	at taching	to	dif f er ent	shar es.	A	pr o xy	need	not	be	a	member .
b .	 T o	be	ef f ectiv e,	the	 instrument	appointing	a	 pr o xy	and	an y	authori t y	under	which	i t	is	signed 	(or	a	notarial ly	certi fied	cop y	of	such	authorit y)	f or	the	annual	gener al	meeting	to	be	
held	at	the	of fices	of	TL T	S olici tors,	S ea	Containers	House,	20	Upper	Gr ound,	B lackf riars	B ridge	on	W ednesda y	26	Ma y	2010	at	10.30	am	and	an y	adjournment(s)	ther eof	must	be	
r eturned	to	the	of fice	of	the	R egistr ars	b y	24	Ma y	2010.	I n	each	case	the	pr o xy	appointments	must	be	r eceiv ed	b y	the	Compan y	not	less	than	48	hours	bef or e	the	time	appointed	
f or	holding	the	meeting	or	an y	adjournment	ther eof .	The	appointment	of	a	pr o xy	does	not	pr eclude	a	member	f r om	at tending	the	meeting	and	v oting	in	person,	in	which	case	
an y	v otes	of	the	pr o xy	wil l	be	superseded.
c.	 A	corpor ation	must	e x ecute	the	F orm	of	Pr o xy	under	ei ther	i ts	common	seal	or	the	hand	of	a 	duly	authorised	of ficer	or	at torney .
d.	 The	F orm	of	Pr o xy	is	f or	use	in	r espect	of	th e	shar eholder	ac count	speci fied	abo v e	only	and	s hould	not	be	amended	or	submi t ted	in	r espect	of	a	di f f er ent	ac count.
e.	 The	‘ Abstain’	option	 is	to	enable	y ou	to	absta in	on	an y	particular	r esolution.	Such	a	v ote	is	no t	a	v ote	in	la w	and	wi l l	not	be	counted	in	the	v otes	‘F or ’	and	‘ Against ’	a	r esolution.
f .	 Only	tho se	members 	enter ed	on	the	r egister 	of	members	of	the	Compan y	as	at	6.00	pm	on	2 4	Ma y	2010	shal l	be	enti tled	to	at tend	or	v ote	at	the	meeting	in	r espect	of	the	
number	of	shar es	r egister ed	in	their	name	at	that	time.	Changes	to	entries	on	the	r egister	of	members	after	that	time	shal l	be	disr egar ded	in	determining	the	rights	of	an y	person	
to	at tend	or	v ote	at	the	meeting.
g.	 Copies	o f	the	Dir ecto rs’	service	contr acts	and	Non-ex ecutiv e	Dir ectors’	let ters	of	appointment	wi th	the	Compan y	wil l	be	a v ailable	f or	inspection	at	the	R egister ed	Of fice	of	the	
Compan y	during	usual	business	hours	on	an y	weekda y	(Satur da ys	and	publ ic	holida ys	ex cluded)	f r om	the	date	of	this	Notice	to	the	date	of	the	meeting	and	f r om	15	minutes	prior	
to	and	unti l	the	close	of	the	meeting.
F orm	of	Pr o xy
	 17603	 27/04/2010	 Proof	7
Second fold
Third fold 
and tuck in flap opposite
First fold
BUSINESS REPLY
Licence No. RSBH-UXKS-LRBC
PXS
34 Beckenham Road
Beckenham
BR3  4TU
"
eg proxy reply.pdf   1   23/04/2010   12:26 17603	 21/04/2010	 Proof	6 17603	 21/04/2010	 Proof	6 17603	 21/04/2010	 Proof	6 17603	 21/04/2010	 Proof	6
intelligent operations management
intelligent operations management
eg solutions plc 
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Staffordshire, ST18 9AB, UK
t : +44 (0) 1785 715772 
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Intelligent
Operations Management
intelligent operations management
intelligent operations management
eg solutions plc
Annual Report and Accounts 
for the year ended 31 January 2010
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