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Intelligent
Operations Management
eg solutions plc
Annual Report and Accounts 
for the year ended 31 January 2012
Stock exchange code: EGS
intelligent operations management 21314-04   20/04/2012    Proof 5 Our Business
01
21314-04    20/04/2012    Proof 5
Our Accounts Our Governance
Our Business
Highlights 3
eg at a Glance 4
Our Customers 6
Chairman’s Statement 8
Chief Executive Officer’s Statement 9
Our Governance
Board of Directors 12
Directors, Advisers and Officers 13
Corporate Social Responsibility 14
Directors’ Report 16
Directors’ Responsibilities in the Preparation 
of the Financial Statements 19
Independent Auditor's Report 
to the members of eg solutions plc 20
Our Accounts
Consolidated Statement of Comprehensive Income 22
Consolidated Statement of Financial Position 23
Company Statement of Financial Position 24
Consolidated Statement of Cash Flows 25
Company Statement of Cash Flows 26
Consolidated Statement of Changes in Equity 27
Company Statement of Changes in Equity 28
Notes to the Group Financial Statements 29
Notice of Meeting 53
Shareholder Notes 54
Contents eg solutions plc 02 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
intelligent operations management
Nordics
UK
The Netherlands
Switzerland
Dubai
Bahrain
Qatar
South Africa
India
Hong Kong
Taiwan
Singapore
 eg operational 
  intelligence
®
  
software suite users
Where we operate
 eg offices
Using our software and solutions we can 
guarantee improvements in operational 
results in short timescales. On average, each 
customer will save between 20% and 50%.
what we do
eg solutions plc is a market leading back office 
optimisation software company that specialises 
in operations management solutions — delivering 
guaranteed improvements in operational 
performance and bottom line results.
The Company currently has more than 41,000 users 
of the eg operational intelligence
®
 software suite 
across blue-chip companies throughout the world. 
Group overview
41,000
users
of eg software worldwide
eg solutions plc has 
the most complete 
purpose built back office 
Workforce Optimisation 
Suite (WFO). Our Business Our Governance Our Accounts
03 Stock code: EGS
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Financial Highlights
l Licences, services and maintenance 
contributed 82% of revenue (2011: 68%)
l Recurring revenue from maintenance and 
subscription licence contracts represented 
49%; and repeat revenues represented 79% 
of total revenue
l £0.9m invested in R&D (2011: £0.6m)
l Tight control over costs which reduced by 
£0.23m on the prior year
l Basic Earnings Per Share 1.0p (2011: 3.7p)
l Overall gross margin maintained at 62.8% 
(2011: 62.6%)
l Positive operating cash flow of £0.74m  
(2011: £0.74m)
Operational Highlights
l Five new financial services customer wins in the 
UK, South Africa and new territories including a 
client in a new sector , an investment bank and 
a business process outsourcer — all with 
significant roll-out potential
l	 Strong trading in H1 following deployment of 
Nuqleus 3D (acquired with XTAQ in March 
2010) to new customers and expansion of 
existing customers
EGS Share Price (p)
Highlights
80
70
60
50
40
30
Nov 2011 Jan 2012 Mar
Operational Highlights  
continued...
l Successfully completed re-engineering 
and pilot projects of product suite 
resulting in a strong demand from 
existing and new customers in the UK 
and internationally — since the year 
end a further contract has been won 
— the largest in our history from a 
leading global financial services 
company
l Development of the back office 
optimisation software market is gaining 
momentum and eg is now reaping the 
rewards of significant investment made 
in it's software, products and services 
to boost eg's market leading position eg solutions plc 04 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
eg at a glance
eg is the only back office optimisation software company 
that guarantees return on investment and is paid based 
on the results delivered — implementations will pay for 
themselves, typically within six months.
l	 Market Leaders in back office  
optimisation software
l Tried, tested and proven solutions that 
deliver dramatic improvements in efficiency
l Over 24 years optimising back office 
performance with operations management 
software and solutions
l International blue-chip client base
l 41,000 users across Europe, Middle East, 
Africa and Asia
l Offices in the UK and South Africa
l Guaranteed benefit realisation programmes
l Rapid Return on Investment (ROI) — 
2:1 ROI in six months
l 100% of customers would recommend  
eg to others
l Accredited by BANKSETA, South Africa’s 
leading award body for training and national 
qualifications in the banking industry.
Our credentials
24
years 
of operational 
management 
experience Our Business Our Governance Our Accounts
05 Stock code: EGS
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Capita — life and pensions service
Implemented eg work manager
®
 to provide complete 
visibility of processes and performance.
eg solutions were selected to support Capita in managing the 
initiative around the mapping and changes to back office work 
flow for managing every stage of its clients end-user customer 
journey.
Results:
• Successfully mapped the customer journey and planned 
resources in the back office to cut processing time by 29%
• Reduced chaser and repeat calls and achieved a 50% 
efficiency saving
• The supply and demand management team have 
successfully adapted front office disciplines into the back 
office
• The partnership with Capita’s client has evolved, with new 
targets agreed and Capita sharing how improvements were 
achieved
Additional benefits:
• Consistent in End-to-End customer processing time —
improved by 23%
• Reduction in chaser calls by 16%
• Customer Satisfaction score improved by 5%
• Increase in Team Manager time to focus on team by 9%
• Reduction in repeat calls by 1000 per month (2.5% of total 
call volume)
• Total number of calls reduced by 16%
• Outstanding work volumes down by 16%
eg in action measure manage improve

  We can fully measure and deliver the end-to-end 
customer journey.

  Staff are aware of and manage work based on 
customer process time.

  Better planning and placement of staff to hit 
peaks and troughs makes us more effective.
eg’s software provides the full functionality required to manage  
people and process performance in the back office.
Back office optimisation eg solutions plc 06 Annual Report & Accounts 2012
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we’re committed
to our customers
Some of our customers Our Business Our Governance Our Accounts
07 Stock code: EGS
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What our customers say about us
“The external recognition for being an 
advocate for process improvements, 
lean operations, and helping embed 
the ‘Retail Savings Operations’ 
principles and practices, of which eg 
plays an integral part was an 
incredibly satisfying experience.”
George Hutchinson — Legal & General 
“The combination of training and 
supporting tools and techniques 
provided by eg were quickly 
deployed, allowing us to achieve a 
range of benefits within weeks. By 
redeploying our people we were able 
to raise the overall standards of 
customer service while simultaneously 
reducing our overall costs.”
Director of Business Process Improvement at 
The Co-operative Financial Services
“When customers call to check on the 
progress of their application, we can 
now see exactly where the back office 
is in processing an application, and 
can tell the customer there and then. 
The process really enhances the 
customer experience.”
Call Centre Phone Coach — Nationwide
“Working with eg has been an amazing 
journey that enabled my team to 
perform at our optimum level at any 
point of each day. It has allowed me 
to spend my time “managing” the 
people rather than creating statistics. 
The best way to describe what the eg 
work manager® tool does for the 
Team and myself is empowering.”
Seviours Nkomo — Silica
“eg work manager® has provided 
team managers with credible data from 
which to monitor and improve people 
and process performance against key 
indicators including service levels, 
quality and development. Automating 
work allocation and the recognition of 
skill levels has also considerably 
improved our productivity and efficiency 
measures.”
Senior Organisation Adviser — DNB  eg solutions plc 08 Annual Report & Accounts 2012
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Chairman’s Statement
Introduction
In September 2011, eg announced interim results reflecting 
strong trading for the first half of the year based on 
deployment of the Nuqleus 3D (“N3D”) solution (acquired with 
XTAQ in March 2010) in two new clients and continued 
expansion of existing eg work manager
®
 clients. The 
re-engineering of our software platform to integrate eg work 
manager
®
 and N3D, and to replace the third party 
component, caused delays to anticipated roll-outs of our 
solutions, as a result of both the development and the 
undertaking of pilot projects with the new products. As a 
consequence, after an encouraging financial performance for 
the first half of the year, revenue and profit for the second half 
of 2011/12 fell below market expectations.
By the end of the year to 31 January 2012 we had 
successfully completed the re-engineering of our enterprise 
software platform, significantly enhancing our leading market 
position and resulting in strong demand for our products and 
services. At the end of the year we won five significant new 
contracts, from both existing and new customers in the UK 
and overseas, including an investment bank and a business 
process outsourcer. All of these contracts have significant 
potential for further expansion. This was followed in March 
2012 by the most significant contract win in the Group history 
with a leading global financial services company.
Existing and potential customers have responded very positively 
both to our existing products and to those we are developing. 
Growth in demand for back office optimisation solutions is 
increasing as financial services and businesses in other sectors 
seek to improve their effectiveness in challenging global 
markets. eg is now in an excellent position to take full 
advantage of the development of this market. The value of 
our order book is growing, along with our customer and user 
base, and recent new contracts have already provided a high 
level of revenue visibility for the current year. 
Financial results
Total revenue for the year was £4.71 million (2010/11: £5.15 
million). Software licences, maintenance and software services 
contributed 82 per cent (2010/11: 68 per cent) of total 
revenue with the balance coming from implementation and 
training services. 
Overall gross margin for the year was maintained at 62.8 per 
cent (2010/11: 62.7 per cent), reflecting increased product 
sales and the re-organisation of the sales and delivery teams.
As a result of the delays in new contracts, caused by the 
failure of the third party software component, profit before tax 
and exceptional costs fell to £0.15 million (2010/11: £0.45 
million). 
Profit after tax was £0.13 million (2010/11: £0.48 million).
Our continuing focus on tight cost control contributed to 
positive operating cash flow of £0.74 million (2010/11: £0.74 
million) and, after investment in research and development of 
£0.86 million (2010/11: £0.65 million), cash at 31 January 
2012 was £0.06 million (2010/11: £0.49 million) and is now 
£0.7 million.
The Board has decided not to recommend the payment of a 
dividend. 
Following the decision of Andrew McRae not to seek re-
election at the last AGM because of his increasing international 
commitments, in May 2011 Phil Lee joined the Board as a 
Non-Executive Director with Board finance responsibility. We 
have been fortunate in being able to draw on Phil’s extensive 
experience and knowledge of the financial services industry 
and, having formerly been an eg client in three previous roles, 
his knowledge includes a detailed understanding of eg and 
our products.
Current trading and outlook
The development of the back office optimisation software 
market is gaining momentum and eg is now reaping the 
rewards of the significant investment made in its software, 
products and services. Trading so far this year has been 
excellent, underpinning our confidence in achieving market 
forecasts. 
Rodney Baker-Bates 
Non-Executive Chairman 
20 April 2012
Rodney Baker-Bates
Non-Executive Chairman
“The development of the back 
office optimisation software 
market is gaining momentum 
and eg is now reaping the 
rewards...” Our Business Our Governance Our Accounts
09 Stock code: EGS
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Chief Executive Officer’s Statement
Elizabeth Gooch
Chief Executive Officer
Overview
Our two greatest achievements in the last year have been the 
five new customer wins in the UK and overseas and the 
successful re-engineering of our back office optimisation 
software suite. 
eg is the only company to have developed a purpose-built 
back office optimisation product capable of delivering desktop 
data capture, combined with real-time work management and 
standardised & bespoke reporting and analytics. Our 
functionality now includes forecasting, planning, intra-day and 
intra-process work allocation, tracking and management, 
together with real-time management information and 
dashboards. The development of our back office forecasting 
product this year, that can forecast at process and task level 
across multi-stage processes, has significantly boosted eg’s 
leading market position.
The re-engineering of our software suite involved replacing a 
third party component within the N3D data capture software 
and integrating this into eg work manager
®
. This re-
engineering was expected to have minimal impact on the 
outcome for the year ended 31 January 2012. Therefore, it 
was disappointing that, through the failure of the third party 
component and the need to undertake pilot projects with the 
new product suite in order to win new contracts and then 
finalise client commitment to their roll-out, revenue and profit 
for last year was lower than expected.
The new software platform has been very well received by 
both new and existing enterprise clients in the UK and 
overseas. We are now experiencing strong demand and our 
sales pipeline is growing rapidly.
We have also continued to maintain tight control over costs 
which reduced by £0.23 million on the prior year including 
£0.17 million as the result of a reorganisation of the sales and 
delivery teams. 
Business development and operations
Market development
The emerging back office optimisation software market 
continues to develop as financial institutions seek to improve 
operational control and minimise back office costs. This trend 
was confirmed in May 2011 by Donna Fluss, founder and 
President of DMG Consulting and recognised thought leader in 
the workforce optimisation market, at a showcase of the 
Company’s new eg operational intelligence
®
 software 
suite. DMG Consulting expects that the back office 
optimisation market will be 3 to 7 times the size of the contact 
centre workforce optimisation market and could have a value 
of at least $3 billion over the next few years. Other analysts 
are also forecasting that demand for new software which 
continuously monitors and analyses people and processes will 
grow significantly. 
This market opportunity is leading to the entry of new 
competition with most workforce optimisation vendors 
claiming to be able to address back office requirements in 
some way. At the same time, the back office is becoming 
increasingly complex with a greater variety of work sources 
including white mail, e-mail, image, SMS and calls as well as 
from core processing systems. The back office is under ever 
growing pressure to improve performance leading to an 
increasing need to understand, control and improve 
operational activity and reduce costs. 
Customer base growth
Following the successful re-engineering of our software 
platform, demand from new and existing customers has been 
encouraging. 
In the first half, work focussed on implementing major 
contracts won at the end of our last financial year in both the 
UK and South Africa.
In July 2011 a new contract, worth approximately £660,000, 
was won from an existing customer in South Africa (a leading 
investment administration company which provides 
outsourced healthcare services) to roll-out further users of the 
eg operational intelligence
®
 software suite. This 
implementation progressed according to plan and a further 
licence purchase was one of the five orders won at the year 
end. They continue with their enterprise roll-out. 
“Our two greatest achievements 
in the last year have been the 
five new customer wins in the 
UK and overseas and the 
successful re-engineering of  
our back office optimisation 
software suite.” eg solutions plc 10 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
“In March 2012, we won the most 
significant contract in eg’s history, 
from a leading global financial  
services company.”
Chief Executive Officer’s Statement continued
In the closing days of the last financial year, we won five 
orders, including three from new UK and international 
customers in the financial services sector and two with 
existing UK and international customers, as follows: 
• a pilot project for the parent bank of an existing life and 
pensions client in Europe;
• a hosted software deployment and services implementation 
for a UK-based business process outsourcer;
• a pilot project for an investment bank;
• the further licence purchase for an existing South African 
client; and
• an extension of services for an existing UK client. 
In March 2012, we won the most significant contract in eg’s 
history, from a leading global financial services company, for 
eg operational intelligence
®
 and implementation services. 
Initially, the contract covers 3,250 users in Europe and India 
as part of the customer’s drive towards cost efficiencies within 
its Consumer and Corporate Banking divisions. Completion of 
the initial project is expected by August 2012 with revenue 
being recognised in the current financial year. The customer 
has also appointed eg as its preferred supplier of back office 
optimisation software and entered into a global master 
agreement for deployment, subject to successful completion 
of the initial contract, of a minimum of 30,000 software 
licences across the enterprise. 
The recently won contracts have significant potential for 
further roll-out as well as scope for recurring revenues.
Technology and product development
The objectives of the successful re-engineering of our product 
suite were fourfold:
• to integrate eg’s products with N3D and replace the third 
party component to provide real-time data capture 
functionality that can be deployed as a standard product;
• to develop strategic planning and forecasting functionality 
to enable us to meet the expectations and demands of our 
clients;
• to develop products capable of rapid, enterprise-wide 
deployment whilst also allowing for phased deployment to 
enable customers to achieve early workforce optimisation 
benefits before deploying full functionality; and
• to incorporate multi-channel transaction capture and 
enable rapid integration with in-house systems. This 
ensures complete data integrity by eliminating the manual 
keying often associated with back office workforce 
management solutions.
Following completion of this re-engineering programme, eg 
now offers the industry’s most complete, purpose-built back 
office optimisation solutions covering:
• Strategic planning and forecasting (eg forecasting™);
• Real-time work management (eg work manager
®
) 
incorporating multi-channel transaction capture using a 
variety of integration services, import and data capture 
solutions 
• Reporting and analytics (eg operational intelligence
®
)
These developments have strengthened eg’s leading 
competitive position and have resulted in major new orders 
and further pilot projects from new and existing customers.
People
Our success in meeting the challenges of the past year and 
positioning eg to optimise the emerging back office 
optimisation market has relied on the high quality, skill and 
hard work of our people and I would like to thank them for 
their contribution to the progress we have made and their 
continuing commitment. 
Prospects
Our objective is to capitalise on the investment we have made 
in our products, and seize the opportunities being created by 
the emerging back office optimisation market, to achieve 
strong, profitable growth.
eg’s market position and opportunity have never been better 
and we are both excited and confident about our future 
prospects. 
Elizabeth Gooch
Chief Executive Officer
20 April 2012
Annual Report & Accounts 2012 Our Business Our Governance Our Accounts
11 Stock code: EGS
21314-04    20/04/2012    Proof 5
Board of Directors 12
Directors, Advisers and Officers 13
Corporate Social Responsibility 14
Directors’ Report 16
Directors’ Responsibilities in the Preparation 
of the Financial Statements 19
Independent Auditor's Report 
to the members of eg solutions plc 20
Our Governance
Our Accounts Our Business Our Governance eg solutions plc 12 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Board of Directors
Elizabeth Gooch
Chief Executive Officer
Elizabeth Gooch started her career in the 1980s as an 
in-house consultant at Forward Trust, a subsidiary of 
Midland Bank. She then moved to Birmingham Midshires 
before establishing eg in 1988. After working for some 
manufacturers, Elizabeth introduced their proactive 
management of processing and operations into the back 
offices of financial services businesses. Based on this 
experience, Elizabeth designed and launched the eg 
operational intelligence
®
 software suite.
Today, having successfully implemented eg’s Operational 
Management solutions in large financial services 
companies such as HBOS, Aviva and Scottish Equitable, 
Elizabeth stands out as one of Staffordshire’s rare IT 
entrepreneurs and was recognised as the seventh leading 
female entrepreneur in Management Today’s top 100 
entrepreneurs 2006 and 2007.
Rodney Baker-Bates
Non-Executive Chairman
Rodney is a Chartered Accountant, a Fellow of the 
Institute of Bankers, and Institute of Management 
Consultants. A former Chief Executive of Prudential 
Financial Services, he previously worked in senior roles 
at the BBC, Midland Bank and Chase Manhattan Bank. 
Rodney is also Deputy Chairman of Co-operative Financial 
Services, Chairman of Stobart Group plc and holds a 
number of Non-Executive roles including, Royal Pension 
Fund for Nurses and Bedlam Investment Management. 13 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Governance Our Accounts Our Business
Directors, advisers 
and officers
Directors
Executive
Elizabeth Gooch Chief Executive Officer
Non-Executive
Rodney Baker-Bates Non-Executive Chairman
Phil Lee Non-Executive Director
Secretary
TLT Secretaries Limited
Registered office
Barn 1
Dunston Business Village 
Stafford Road
Dunston
Stafford
Staffordshire
ST18 9AB
Auditors
Baker Tilly UK Audit LLP
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5BB
Solicitors
TLT Solicitors
Sea Containers House
20 Upper Ground
Blackfriars Bridge
London 
SE1 9LH 
Nominated adviser and broker
Panmure Gordon & Co
155 Moorgate
London
EC2M 6XB
United Kingdom
www.eguk.co.uk
Phil Lee
Non-Executive Director
Phil Lee has been a Board Director of Co-operative 
Financial Services, with responsibility for Integration and 
Change, following the merger with Britannia Building 
Society in August 2009. He joined Britannia Building 
Society as Group Finance Director in 2002 until his 
appointment in January 2008 as Managing Director 
Britannia Capital Investment Group.
Other senior positions held by Phil are Finance Director, 
West Bromwich Building Society, Head of Finance, Bristol 
& West plc (formerly Bristol & West Building Society) and 
Head of Finance, Somerfield plc.
A chartered accountant, Phil qualified in 1983 with Ernst 
& Young where he worked in London and Bristol. Prior to 
joining Ernst & Young in 1981, he worked in the National 
Audit Office (1978-1981) having worked for Wigan 
Metropolitan Borough Council (1975-1978). He is a maths 
graduate from Imperial College London.
Phil is a Non-Executive Director of the Company and has 
Board Finance responsibility. eg solutions plc 14 Annual Report & Accounts 2012
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Corporate Social Responsibility
Employees
eg’s intention is to listen to and involve staff — employee 
feedback is an important way of ensuring the continuous 
improvement of the business and can help improve staff 
satisfaction. Employees are fully supported by the Company 
should they choose to undertake further study and training.
Environment
Our offices are energy efficient offices and in utilising the 
latest technology we are endeavouring to minimise our impact 
on the environment. It is Company policy that all waste 
materials are recycled. Wherever possible eg uses FSC 
certified paper products and sustainable suppliers. We 
introduced ethical external Christmas cards in 2008 and a 
digital card for employees to reduce waste.
South Africa
The South African government has introduced a 
comprehensive system to help integrate black people into 
society, post-apartheid, and therefore encourage and assist 
the transition of economic empowerment. Companies 
operating in South Africa have to achieve Broad Based Black 
Economic Empowerment (BBBEE) accredited status in support 
of these objectives. Businesses are classified by their size and 
measured in terms of how successfully they comply with a 
range of seven measures.
For the third year running eg have been accredited with level 
3 status (out of 10, 1 is the highest score).
Company charity
Since establishing a subsidiary in Johannesburg in 2007, eg 
has chosen the Doornkop Needy Children’s Centre as its 
Company charity. The centre provides safety and shelter for 
orphaned or fostered children aged 0 to 5 years old, some of 
whom are HIV positive. eg supports fundraising activities with 
staff and clients, as well as making its own financial 
contributions to the charity. The Company organises annual 
educational outings for the children and has provided items 
from a “wish list” of educational items using some of the 
funds raised to expand the facilities they have available and 
contribute towards the children’s education.
The aim of the Doornkop Needy Children’s Centre (DNCC) is 
to provide 160 underprivileged children, between the age of 0 
and 5 years, with safety, shelter, clothing, education love and 
medical aid from Monday to Friday.
In line with eg’s vision of enabling people to help themselves, 
eg chose DNCC to help underprivileged children to gain 
access to regular food and education as well as support those 
affected by the AIDS virus to build a brighter future for 
themselves.
Important Priorities: 
Child welfare – providing a safe environment for the 
children, that would otherwise be left alone and at risk
Hunger and Malnutrition – providing a safe haven and 
respite for parents, ensuring access to food and water to 
support their health
Education – engaging the children in educational activities 
such as learning the alphabet, numbers and the concept of 
colour and providing access to educational toys
In 2011 eg became the primary sponsor to ensure that the 
crèche gets the support they need to meet their everyday 
needs.
eg have donated a minimum of R60k (Rand) every year to aid 
the development of the crèche.
eg’s Corporate Social Responsibility 
(CSR) policy has been produced in 
collaboration with employees and 
reflects the areas the Company feels 
are most closely aligned to its 
business operations. Our Accounts
15 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Governance
Donation and fundraising activities have helped provide:
• E-pap
• Learning Materials
• Toys
• Clothes 
• Seasonal outings
• Practical items such as first aid kits and blankets
“We have come a long way in creating a proper structure and 
programme for the children. Our long-term goal is to build a 
new crèche with even better facilities. Through the support of 
eg the community and staff we have seen the children 
develop holistically and seen them go on to start formal 
education”
Namsi Lesito – Principal at the crèche
eg operations 
management  
solutions (pty) 
limited
Block 2
Fountain Grove Office Park
5 Second Road
Hyde Park
Sandton 2196
Johannesburg
South Africa
Tel: +27 (0) 11 447 6218
Fax: +27 (0) 11 447 0313
ask@egsa.co.za 
www.egsa.co.za
“In a recent eg employee survey 
100% of respondents think eg is a 
good place to work and would 
recommend eg as an employer”   eg solutions plc 16 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Directors’ Report
The Directors submit their report and the financial statements 
of eg solutions plc for the year ended 31 January 2012.
Principal Activities
The principal activity of the Group is that of an IT and 
software support services business delivering guaranteed 
improvements in operational management. The Group uses 
proprietary software packages and an operations management 
methodology based on production management techniques. 
The Group delivers measurable operational improvements in 
large back office environments.
FINANCIAL REvIEW
Overview
In the year ended 31 January 2012, revenue was £4.71m, a 
decrease of £0.44m (2011: £5.15m). The Group made a profit 
from operations of £0.16m (2011: £0.36m).
Revenue Analysis
Revenue earned in the first half of the year was £2.66m 
compared with £2.41m in the same period for the prior year. 
The Group produced below expectation revenues for the 
second half of the year with revenue of £2.05m, a 25% 
decrease on 2011 £2.74m. The lower revenue was caused by 
the failure of a third party software component within the 
XTAQ product leading to our re-engineering the product suite. 
Profit Before Taxation
The Group produced a profit before taxation of £0.15m. 
(2011: £0.36m). 
Taxation
The Group has benefited from the favourable tax relief given 
on development expenditure. The effective rate of taxation 
charge is 12% (2011: effective rate of tax credit 36%).
 
Earnings Per Share
Earnings per share on a basic and fully diluted basis was 1.0p 
and 1.0p respectively. In the prior year the basic earnings per 
share was 3.7p and on a fully diluted basis 3.5p.
Results and Dividend
The trading results are set out on page 22. The Directors do 
not recommend the payment of a final dividend on the 
ordinary shares (2011: £nil).
Research and Development & Capital Expenditure
The Group spent £1.21m on direct staff and contractor costs 
for research and development, of which £0.77m was 
capitalised. An additional £0.09m, in relation to direct costs, 
was also capitalised. In 2011 the Group expended £1.10m on 
direct staff and contractor costs developing its software 
product of which £0.55m was capitalised. An additional 
£0.10m, in relation to direct costs, was also capitalised. The 
expenditure relates to the development of new and enhanced 
software offerings. 
Cash Flow
The Group at 31 January had interest-earning cash balances 
of £0.06m. (2011: £0.49m). Cash outflow in the year was 
£0.43m (2011: inflow £0.08m). 
Future Developments
The Group has embarked upon a growth strategy which will 
extend its activities in financial services into other new UK 
market sectors, in addition to developing its activities outside 
of the UK.
Key Performance Indicators
The Group’s progress on its strategic objectives is monitored 
by the Board of Directors by reference to the following key 
performance indicators. The matters mentioned in the 
Chairman’s statement are a reflection of the performance of 
the business set out in the table below along with comparative 
prior year performance data.
Note 2012 2011
Revenue A £4,714,000 £5,148,000
% Change B (8.4%) 24.0%
Gross Margin % C 62.8% 62.7%
Profit from operations % D 3.3% 6.9%
Profit after tax % E 2.7% 9.4%
Retained Cash Balances A £64,000 £487,000
Cash (outflow)/inflow A (£428,000) £82,000
Research and Development Expenditure on staffing costs  
(including capitalised staff development costs) A £1,206,000 £1,096,000
Debtor Days F 49 29
Creditor Days F 50 31 Our Accounts
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Our Business Our Governance
Political and Charitable Contributions
During the year the Group made charitable donations to UK 
registered charities of £40,000 (2011: £54,000), including the 
Elton John Aids Foundation. No political donations were made.
Research and Development
The Group invests in new product development and the 
continual modification and improvement of its existing 
products to meet technological advances, customer and new 
market requirements.
Employee Involvement and Disability
The Group’s policy is to consult and discuss with employees 
any matters likely to affect their interests. Information on 
matters of concern to employees is provided in order to 
achieve a common awareness of the financial and economic 
factors affecting the Group’s performance.
The Group’s policy is to recruit disabled workers for those 
vacancies that they are able to fill. All necessary assistance 
with initial training courses is given. Once employed, a career 
plan is developed so as to ensure suitable opportunities for 
each disabled person. Arrangements are made, wherever 
possible, for retraining employees who become disabled to 
enable them to perform work identified as appropriate to their 
aptitudes.
Risks and Uncertainties
There are a number of potential risks and uncertainties which 
could have a material impact on the Group’s long-term 
performance and cause actual results to differ materially from 
expected and historical results. Management seeks to identify 
material risks and put in place contingency plans to mitigate 
the Group’s potential exposure. 
Competitor Risk
The market for operations management improvement is 
becoming increasingly competitive. To mitigate this risk, 
management works to build strong customer relationships and 
develop the Group’s product offering. 
Commercial Relationships
Some of the products utilise interfaces with proprietary 
software licensed by independent, third party software 
developers. Any absence of key third party products could 
have a material impact on the business.
To mitigate this risk, all key commercial relationships and 
developments in technology in the marketplace are kept under 
review. The Group also works with a diversity of partners to 
mitigate the risk inherent in working with a single partner.
Operations
The Group’s facilities could be disrupted by events beyond its 
control such as fire or other issues.
The Group prepares recovery plans for most foreseeable 
situations so that our business operations would continue 
should these situations occur. 
Financial Risk Management Objectives and Policies
The main financial risks faced by the Group relate to the risk 
of default to financial transactions by customers, availability of 
funds to meet the Group’s needs and fluctuations in foreign 
exchange rates.
The Group manages these risks through an effective risk 
management programme. Exposures to financial risks are 
monitored by management and they are required to produce 
a quarterly risk report comprising all risks and an indication of 
the business impact of those risks.
The risk reports are provided to the Board of Directors in 
advance of the Board meetings and are discussed by the 
Board to ensure that the risk mitigation procedures are 
compliant with the Group policy and that any new risks are 
appropriately managed.
Credit Risk
The objective is to reduce the risk of loss arising from default 
to financial transactions by customers. The Group has focused 
on selling to a “blue chip” customer base thereby minimising 
the risk of incurring bad debts. The Group’s positions with 
these counterparties and their credit ratings are routinely 
monitored.
Liquidity
At the year end the Group had £0.06m in net cash balances. 
The objective is to ensure that operating profits are turned 
into cash balances during the year. The policy is to monitor 
the cash balance and keep a positive balance.
The Group finances its operations through retained profits and 
has an overdraft facility to provide additional liquidity if 
required.
A  Revenue, Cash and cash equivalents, Cash flow from operating activities and research and development staffing 
expenditure are as extracted from the financial statements.
B Revenue growth/reduction compares the change in revenue from one year to the next expressed in percentage terms.
C  Gross Margin is the gross profit as a percentage of revenue. Gross profit and revenue are taken from the Statement of 
Comprehensive Income in the financial statements.
D Profit from operations is the profit from operations as a percentage of revenue.
E Profit after tax is the profit after tax as a percentage of revenue.
F  Debtor days represent the length of time taken by customers to pay their bills and Creditor days represent the length 
of time taken by the Group to pay its suppliers. The number of days outstanding has been calculated by comparing the 
outstanding balance for trade debtors and trade creditors with the average value of sales or purchases for the previous 
12 months respectively, inclusive of VAT, and multiplying by the number of days in the year.  eg solutions plc 18 Annual Report & Accounts 2012
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Directors’ Report continued
Foreign Currency Risk
The Group is exposed to minimal foreign currency risk through 
transactions with overseas customers.
The Group is also exposed to exchange fluctuations which 
affect the value of its overseas subsidiary. The Group’s 
objective is to minimise exchange risks and the policy is to 
match cash payments and receipts in each currency wherever 
possible. Currency fluctuations are regularly monitored but the 
Group does not use any hedging instruments.
Directors
The following Directors have held office since 1 February 
2011:
RP Baker-Bates 
EA Gooch
P Lee (appointed 16 May 2011)
A McRae (resigned 8 June 2011)
Directors’ Interests in Shares 
Directors’ interests in the shares of the Group as at  
31 January 2012, including family interests, were as follows:
Beneficial
Ordinary 
shares 
of 1p each 
31 January 
2012
Ordinary 
shares 
of 1p each 
31 January 
2011
Beneficial
RP Baker-Bates 805,000 775,000
EA Gooch 7,629,720 8,129,720
P Lee 27,890 —
EA Gooch is a director of eg solutions plc EBT Ltd which is the 
sole trustee of the eg solutions plc Employee Benefit Trust 
which held 1,516,470 shares at the year end. 
Policy on Payment of Creditors 
It is the Group’s policy that payments to suppliers are made in 
accordance with those terms and conditions agreed between 
the Group and its suppliers, provided that all trading terms 
and conditions have been complied with. 
Trade creditor days based on creditors at 31 January 2012 
were 50 days (2011: 31 days).
Statement as to disclosure of information to auditors
The directors who were in office on the date of approval of 
these financial statements have confirmed that, as far as they 
are aware, there is no relevant audit information of which the 
auditors are unaware. Each of the directors have confirmed 
that they have taken all the steps that they ought to have 
taken as directors in order to make themselves aware of any 
relevant audit information and to establish that it has been 
communicated to the auditor.
Annual General Meeting
A resolution to appoint Baker Tilly UK Audit LLP as auditors 
will be put to the members at the annual general meeting of 
the Company at 10.30 am on Wednesday 6 June 2012 at 
Institute of Directors Business Centre, 116 Pall Mall, London 
SW1Y 5ED. 
Approval
This report was approved by the Board of Directors on  
20 April 2012 and signed on its behalf by:
EA Gooch 
Chief Executive Officer 
20 April 2012 Our Accounts
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Our Business Our Governance
Directors’ Responsibilities in the Preparation of the  
Financial Statements
The Directors are responsible for preparing the Directors’ 
Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the Directors to prepare Group and 
Company financial statements for each financial year. The 
Directors are required by the AIM Rules of the London Stock 
Exchange to prepare Group financial statements in accordance 
with International Financial Reporting Standards (“IFRS”) as 
adopted by the European Union (“EU”) and have elected 
under company law to prepare the Company financial 
statements in accordance with IFRS as adopted by the EU.
The financial statements are required by law and IFRS 
adopted by the EU to present fairly the financial position of 
the Group and the Company and the financial performance of 
the Group. The Companies Act 2006 provides in relation to 
such financial statements that references in the relevant part 
of that Act to financial statements giving a true and fair view 
are references to their achieving a fair presentation.
Under company law the Directors must not approve the 
financial statements unless they are satisfied that they give a 
true and fair view of the state of affairs of the Group and the 
Company and of the profit or loss of the Group for that period. 
In preparing the Group and Company financial statements, 
the Directors are required to:
a. select suitable accounting policies and then apply them 
consistently;
b. make judgements and accounting estimates that are 
reasonable and prudent;
c. state whether they have been prepared in accordance 
with IFRSs adopted by the EU;
d. prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Group and the Company will continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Group’s 
and the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Group and 
the Company and enable them to ensure that the financial 
statements comply with the Companies Act 2006. They are 
also responsible for safeguarding the assets of the Group and 
the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included on 
the eg solutions plc website.
Legislation in the United Kingdom governing the preparation 
and dissemination of financial statements may differ from 
legislation in other jurisdictions. eg solutions plc 20 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Independent Auditor's Report to the Members of eg solutions plc
We have audited the Group and Parent Company financial 
statements (“the financial statements”) on pages 22 to 52. 
The financial reporting framework that has been applied in 
their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European 
Union and, as regards the Parent Company financial 
statements, as applied in accordance with the provisions of 
the Companies Act 2006. 
This report is made solely to the Company’s members, as  
a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken so 
that we might state to the Company’s members those matters 
we are required to state to them in an auditor’s report and for 
no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than 
the Company and the Company’s members as a body, for our 
audit work, for this report, or for the opinions we have 
formed.
Respective responsibilities of directors and auditor
As more fully explained in the Directors’ Responsibilities 
Statement set out on page 19, the directors are responsible 
for the preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our responsibility 
is to audit and express an opinion on the financial statements 
in accordance with applicable law and International Standards 
on Auditing (UK and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements 
is provided on the APB’s website at www.frc.org.uk/apb/
scope/private.cfm.
Opinion on financial statements
In our opinion 
• the financial statements give a true and fair view of the 
state of the Group’s and the parent’s affairs as at 31 
January 2012 and of the Group’s profit for the year then 
ended;
• the Group financial statements have been properly 
prepared in accordance with IFRSs as adopted by the 
European Union
• the Parent’s financial statements have been properly 
prepared in accordance with IFRSs as adopted by the 
European Union and as applied in accordance with the 
Companies Act 2006; and
• the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion the information given in the Directors’ Report 
for the financial year for which the financial statements are 
prepared is consistent with the financial statements.
Matters on which we are required to report by 
exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
• adequate accounting records have not been kept by the 
Parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or
• the Parent Company financial statements are not in 
agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by 
law are not made; or
• we have not received all the information and explanations 
we require for our audit.
Geoff Wightwick FCA (Senior Statutory Auditor) 
For and on behalf of BAKER TILLY UK AUDIT LLP,  
Statutory Auditor 
Chartered Accountants 
3 Hardman Street 
Manchester 
M3 3HF
20 April 2012 21 Stock code: EGS
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Our Accounts Our Governance Our Business
Consolidated Statement of Comprehensive Income 22
Consolidated Statement of Financial Position 23
Company Statement of Financial Position 24
Consolidated Statement of Cash Flows 25
Company Statement of Cash Flows 26
Consolidated Statement of Changes in Equity 27
Company Statement of Changes in Equity 28
Notes to the Group Financial Statements 29
Notice of Meeting 53
Shareholder Notes 54
Our Accounts eg solutions plc 22 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Consolidated Statement of Comprehensive Income 
for the year ended 31 January 2012
Note
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Revenue 2 4,714 5,148
Cost of sales (1,755) (1,923)
Gross profit 2,959 3,225
Administrative expenses (2,803) (2,869)
Profit from operations 4 156 356
Finance income 7 1 1
Finance charges 7 (11) (2)
Profit before tax 146 355
Tax (charge)/credit 8 (17) 127
Profit for the year 129 482
Other comprehensive income:
Exchange differences on translation of foreign operation (58) 40
Total comprehensive income for the year 71 522
Profit and total comprehensive income attributable to equity 
shareholders of the Parent Company 71 522
Earnings per share
From continuing operations
Basic 10 1.0p 3.7p
Diluted 10 1.0p 3.5p Our Governance
23 Stock code: EGS
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Our Business Our Accounts Our Business Our Governance Our Accounts
Consolidated Statement of Financial Position 
as at 31 January 2012
Note
At 
31 January 
2012 
£’000
At
31 January
2011
£’000
Assets
Non-current assets
Intangible assets 11 2,712 2,382
Property, plant and equipment 12 53 87
2,765 2,469
Current assets
Trade and other receivables 15 981 1068
Inventories 17 11 18
Current tax receivable 51 11
Cash and cash equivalents 18 64 487
1,107 1,584
Total assets 3,872 4,053
Liabilities
Current liabilities
Trade and other payables 20 1,434 1,559
5% Convertible loan notes 33 141 —
1,575 1,559
Non-current liabilities
5% Convertible loan note 33 — 137
Deferred tax liabilities 23 381 277
381 414
Total liabilities 1,956 1,973
Net assets 1,916 2,080
Equity 
Share capital 25 143 143
Share premium 2,910 2,910
Share-based payment reserve 464 352
Own shares held (1,212) (881)
Retained earnings (375) (488)
Foreign exchange (22) 36
Other reserves 8 8
Total equity 1,916 2,080
The financial statements on pages 22 to 52 were approved by the Board of Directors and authorised for issue on 20 April 2012 
and are signed on its behalf by: 
Elizabeth Gooch
Chief Executive Officer eg solutions plc 24 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Company Statement of Financial Position 
As at 31 January 2012
Note
At
31 January
2012
£’000
At
31 January
2011
£’000
Assets
Non-current assets
Intangible assets 11 2,712 2,382
Property, plant and equipment 13 32 49
Investments in subsidiaries 14 — —
2,744 2,431
Current assets
Trade and other receivables 16 729 636
Inter-company receivables 833 817
Inventories 17 11 18
Current tax receivable 51 11
Cash and cash equivalents 19 31 416
1,655 1,898
Total assets 4,399 4,329
Liabilities
Current liabilities
Trade and other payables 21 1,297 1,450
5% Convertible loan notes 33 141 —
1,438 1,450
Non-current liabilities
5% Convertible loan notes 33 — 137
Deferred tax liabilities 24 381 277
381 414
Total liabilities 1,819 1,864
Net assets 2,580 2,465
Equity 
Share capital 25 143 143
Share premium 2,910 2,910
Share-based payment reserve 464 352
Own shares held (1,212) (881)
Retained earnings 267 (67)
Other reserves 8 8
Total equity 2,580 2,465
The financial statements on pages 22 to 52 were approved by the Board of Directors and authorised for issue on 20 April 2012 
and are signed on its behalf by: 
Elizabeth Gooch
Chief Executive Officer Our Governance
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Our Business Our Accounts
Consolidated Statement of Cash Flows 
For the year ended 31 January 2012
Note
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Operating activities
Cash generated by operations 27 742 740
Income taxes received 48 74
Net cash generated by operating activities 790 814
Investing activities
Purchases of intangible assets (861) (646)
Purchases of property, plant and equipment (11) (59)
Proceeds from sale of property, plant and equipment — 1
Purchase of own shares (348) —
Exercise of option shares 1 3
Interest received 1 1
Net cash acquired with subsidiaries — 1
Cash paid on acquisition of subsidiary — (33)
Net cash used in investing activities (1,218) (732)
Net (decrease)/increase in cash and cash equivalents (428) 82
Cash and cash equivalents at beginning of year 487 410
Effect of foreign exchange rates 5 (5)
Cash and cash equivalents at end of year 64 487 eg solutions plc 26 Annual Report & Accounts 2012
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Company Statement of Cash Flows 
for the year ended 31 January 2012
Note
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Operating activities
Cash generated from operations 28 782 817
Income taxes received 48 74
Net cash generated from operating activities 830 891
Investing activities
Purchases of intangible assets (861) (646)
Purchases of property, plant and equipment (8) (25)
Proceeds from sales of property, plant and equipment — 1
Purchase of own shares (348) —
Exercise of option shares 1 3
Interest received 1 —
Net cash acquired with subsidiaries — 1
Cash paid on acquisition of subsidiary — (33)
Net cash used in investing activities (1,215) (699)
Net (decrease)/increase in cash and cash equivalents (385) 192
Cash and cash equivalents at beginning of year 416 224
Cash and cash equivalents at end of year 31 416 Our Governance
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Our Business Our Accounts
Consolidated Statement of Changes in Equity
Share 
Capital
£’000
Share
Premium
£’000
Share
based
payment
reserve
£’000
Own
Shares
Held
£’000
Retained
Earnings
£’000
Foreign
Exchange
£’000
Other 
reserves
£’000
Total 
amounts 
attributable 
to equity 
holders of 
the parent 
company
£’000
Balance at 1 February 2010 143 2,910 208 (949) (856) (4) — 1,452
Profit for the year — — — — 482 — — 482
Other comprehensive gains — — — — — 40 — 40
Total comprehensive income — — — — 482 40 — 522
Share-based payments — — 95 — — — — 95
Shares issued to employees — — — 68 (65) — — 3
Equity component of loan note — — — — — — 8 8
Prior year reserves transfer — — 49 — (49) — — —
Balance at 31 January 2011 143 2,910 352 (881) (488) 36 8 2,080
Profit for the year — — — — 129 — — 129
Other comprehensive gains — — — — — (58) — (58)
Total comprehensive income — — — — 129 (58) — 71
Share-based payments — — 112 — — — — 112
Own shares purchased — — — (348) — — — (348)
Shares issued to employees — — — 17 (16) — — 1
Balance at 31 January 2012 143 2,910 464 (1,212) (375) (22) 8 1,916
The share-based payment reserve is a reserve to recognise those amounts in retained earnings in respect of share-based 
payments.
The own shares held reserve shows movements in the shares held in trust by the eg solutions Employee Benefit Trust.
Retained earnings include the accumulated profits and losses arising from the Consolidated Statement of Comprehensive Income 
excluding foreign exchange differences.
The foreign exchange reserve comprises all exchange differences arising from the translation of the financial statements of 
overseas operations.
Other reserves represent the equity component of the convertible loan notes. eg solutions plc 28 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Company Statement of Changes in Equity
Share 
capital
£’000
Share
Premium
£’000
Share
based
payment
reserve
£’000
Own
Shares
Held
£’000
Retained
Earnings
£’000
Other 
reserves
£’000
Total 
amounts 
attributable 
to equity 
holders of 
the parent 
company
£’000
Balance at 1 February 2010 143 2,910 208 (949) (333) — 1,979
Profit and total comprehensive 
income for the year — — — — 380 — 380
Share-based payments — — 95 — — — 95
Shares issued to employees — — — 68 (65) — 3
Equity component of loan note — — — — — 8 8
Prior year reserves transfer — — 49 — (49) — —
Balance at 31 January 2011 143 2,910 352 (881) (67) 8 2,465
Profit and total comprehensive 
income for the year — — — — 350 — 350
Share-based payments — — 112 — — — 112
Own shares purchased — — — (348) — — (348)
Shares issued to employees — — — 17 (16) — 1
Balance at 31 January 2012 143 2,910 464 (1,212) 267 8 2,580
The share-based payment reserve is a reserve to recognise those amounts in retained earnings in respect of share-based 
payments.
The own shares held reserve shows movements in the shares held in trust by the eg solutions Employee Benefit Trust.
Retained earnings include the accumulated profits and losses arising from the Company Statement Of Comprehensive Income.
Other reserves represent the equity component of the convertible loan notes. Our Governance
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Our Business Our Accounts
Notes to the Group Financial Statements
for the year ended 31 January 2012
1.  ACCOUNTING POLICIES 
eg solutions plc is a public limited company incorporated in England, registered number 2211062, with its registered office 
at Barn 1, Dunston Business Village, Stafford Road, Dunston, Staffordshire, ST18 9AB.
The principal activities of the Group are the development and sale of software and consultancy in the back office 
optimisation market.
The Group and Company financial statements have been prepared in accordance with International Financial Reporting 
Standards as endorsed by the EU (“IFRS”).
The financial statements have been prepared on the historical cost and going concern basis as discussed in the Directors’ 
Report. The principal accounting policies adopted are set out below.
The Company made a profit after tax of £0.13m (2011: £0.48m) for the financial year. The Directors have taken advantage 
of the exemption available under section 408 of the Companies Act 2006 and have not presented a Consolidated Statement 
of Comprehensive Income for the Company.
Going Concern
The Group manages its day-to-day working capital requirements through a combination of cash inflows from sales, tight 
management of expenses and when required an overdraft facility. The overdraft facility has recently been extended to 16 
March 2013.
The Group’s forecasts and projections, which take account of both positive and negative variations in trading performance, 
show that the Group has sufficient headroom to operate within the level of its current facility. Should the facility be required 
beyond 16 March 2013 the Directors currently have no reason to believe that it will not be extended or that the Group 
could not obtain other sources of funding.
The Directors have a reasonable expectation, based on both recent past performance and the current pipeline of possible 
future business, that the Group has adequate resources to continue in operational existence for the foreseeable future. 
Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Relevant Accounting Standards Issued and Effective
During the year the following relevant accounting standards have been issued and are effective but have not had a material 
impact on the Group:
• IAS 24 (Revised) “Related Party Disclosures”
• IAS 1 (Improvements) “Presentation of Financial Statements”
• IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”
Relevant Accounting Standards Issued but not yet effective
During the year the following relevant accounting standards have been issued but are not yet effective and are not 
expected to have a material impact on the Group:
• IFRS 9 “Financial Instruments”
• IFRS 10 “Consolidated Financial Statements”
• IFRS 13 “Fair Value Measurement”
• IAS 1 (Amendment) “Presentation of Other Comprehensive Income”
• IAS 12 (Amendment) “Income Taxes”
• IAS 19 (Amendment) “Employee Benefits”
• IAS 27 (Amendment) “Consolidated and Separate Financial Statements”
• IAS 32 (Amendment) “Financial Instruments: Presentation” eg solutions plc 30 Annual Report & Accounts 2012
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Notes to the Group Financial Statements continued
for the year ended 31 January 2012
1.  ACCOUNTING POLICIES continued
Basis of Consolidation
The Group financial statements consolidate the financial statements of eg solutions plc and the enterprises controlled by 
the Group (its subsidiaries) made up to 31 January each year. The financial statements are presented in pounds sterling 
and have been rounded to the nearest thousand except where otherwise indicated.
Subsidiaries
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and 
continue to be consolidated until the date that such control ceases. The financial statements of subsidiaries used in the 
preparation of the consolidated financial statements are prepared for the same reporting year as the Parent Company and 
are based on consistent accounting policies. All inter-company balances and transactions, including unrealised profits 
arising from them, are eliminated.
Property, Plant and Equipment
Property, plant and equipment are stated at historical cost, net of depreciation and any provision for impairment.
Depreciation is provided on all property, plant and equipment at rates calculated to write each asset down to its estimated 
residual value over its expected useful life, as follows:
Computer Equipment — 50% straight line
Office Equipment — 15% reducing balance
Fixtures and Fittings — 15% reducing balance
Motor Vehicles — 25% reducing balance
Leasehold Improvements — 20% straight line
Impairment of non-current assets
At each reporting date, the Group reviews the carrying amounts of its non-current assets to determine whether there is any 
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 
asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash 
flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to 
which the asset belongs. An intangible asset with an indefinite useful life or that has not yet been brought into use is tested 
for impairment annually.
Intangible Assets 
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from the Group’s software development is recognised only when all of the 
following conditions are met:
• an asset is created that can be identified (such as software and new processes);
• it is probable that the asset created will generate future economic benefits; 
• the development cost of the asset can be measured reliably;
• the product or process is technically and commercially viable; and 
• sufficient resources are available to complete the development and to either sell or use the asset.
Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in 
the period in which it is incurred. 
Internally-generated intangible assets are amortised on a straight-line basis over their useful lives (6 years). The 
amortisation is charged to cost of sales in the Consolidated Statement of Comprehensive Income.
Intangible assets purchased as part of a business combination are recognised at their fair value at the acquisition date and 
amortised over the estimated life of the asset. These assets include intellectual property relating to the Nuqleus product set 
and customer relationships which eg would continue to benefit from. These are amortised over their useful economic lifes 
(5 years). Our Governance
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Our Business Our Accounts
1.  ACCOUNTING POLICIES continued
Inventories
Inventories are stated at the lower of cost and net realisable value. 
Retirement Benefits
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of 
the Group in an independently administered fund. The amount charged to the Consolidated Statement of Comprehensive 
Income in respect of pension costs and other post retirement benefits is the contributions payable in the year.
Differences between contributions payable in the year and contributions actually paid are shown as either accruals or 
prepayments at the reporting date. 
Foreign Currencies
Transactions in currencies other than sterling, the presentational and functional currency of the Group, are recorded at the 
rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that 
are denominated in foreign currencies are retranslated at the rates prevailing on the reporting date. Gains and losses 
arising on retranslation are included in the Consolidated Statement of Comprehensive Income for the period.
On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates prevailing on 
the reporting date. Income and expense items are translated at the average exchange rates for the period. Exchange 
differences arising, if any, are classified as equity and transferred to the Group’s foreign exchange reserve. Such translation 
differences are recognised as income or as expenses in the period in which the operation is disposed of.
The results of overseas operations have been translated into sterling at the monthly weighted average rate of exchange for 
the period. Rand denominated assets and liabilities have been translated at the relevant rate of exchange at the reporting 
date of £1 = R12.3081. (2011: £1 = R11.4301).
Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 
Consolidated Statement of Comprehensive Income because it excludes items of income or expense that are taxable or 
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current 
tax is calculated by using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and 
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred 
tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that 
it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such 
assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the 
initial recognition (other than in a business combination) of other assets and liabilities in a transaction which affects neither 
the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and 
associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary 
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability 
is settled based upon tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is 
charged or credited in the Consolidated Statement of Comprehensive Income, except when it relates to items credited or 
charged directly to equity, in which case the deferred tax is dealt with in equity.
Trade Receivables
Trade receivables are recognised and carried at original invoice amount less provision for impairment.
A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be 
able to collect all amounts due according to the original terms of receivables. The amount of provision is recognised in the 
Consolidated Statement of Comprehensive Income. eg solutions plc 32 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
1.  ACCOUNTING POLICIES continued
Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand and at bank and other short-term deposits held by the Group with 
maturities of less than three months.
Trade Payables
Trade payables are recognised and carried at original invoice amount.
Share-Based Payments
Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant 
date of equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the 
Group’s estimate of shares that will eventually vest. Fair value is measured by use of the Black–Scholes model. The 
expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-
transferability, exercise restrictions, and behavioural considerations.
Employee Share Ownership Plans
The Company operates an ESOP trust and has de facto control of the shares held by the trust and bears their benefits and 
risks. The Group records certain assets and liabilities of the trust as its own. Finance costs and administrative expenses are 
charged as they accrue.
Leases
Leases in which a significant portion of the risk and rewards of ownership are retained by the lessor are classified as 
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to 
the Statement of Comprehensive Income on a straight-line basis over the period of the lease. The Group has no finance 
leases.
Convertible Debt Instruments
Instruments where the holder has the option to redeem for cash or convert into a pre-determined quantity of equity 
instruments are classified as compound instruments and presented partly as a liability and partly as equity.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a 
similar non-convertible instrument. The difference between the proceeds of issue and the fair value assigned to the liability 
component, representing the embedded option to convert the liability into equity of the Group, is included in equity.
The interest expense on the liability component is calculated by applying the prevailing market interest rate for similar 
non-convertible debt to the instrument. The difference between this amount and the interest paid is added to the carrying 
value of the convertible loan note.
Critical Accounting Estimates and Judgements
The preparation of Group financial statements in conformity with Generally Accepted Accounting Principles requires the use 
of accounting estimates and judgements in the process of applying the Group’s accounting policies. These judgements and 
estimates are based on historical experience and management’s best knowledge of the amounts, events or actions. 
 
Impairment of intangible assets
When testing the intangible assets for impairment, the Group considers the future contracted cash inflows from repeatable 
revenues and deducts the costs involved in servicing the repeatable revenues to give a contribution to fixed costs. The 
Group then reviews the amount of contribution to fixed costs against the amount of intangible assets held on the statement 
of financial position to determine whether an impairment needs is required. 
Revenue Recognition
Revenue is recognised when revenue and associated costs can be measured reliably and future economic benefits are 
probable. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, 
VAT and other sales taxes. The following criteria must also be met before revenue is recognised:
Maintenance Contracts
Income in respect of maintenance contracts is invoiced on an annual basis and recognised as earned. Our Governance
33 Stock code: EGS
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Our Business Our Accounts
1.  ACCOUNTING POLICIES continued
Software Licences
For perpetual licences revenues are recognised once the software has been fully installed. For fixed term licences revenues 
are recognised on a straight line basis.
Implementation and software services
Revenues in respect of implementation and software services are recognised on a percentage of completion basis 
calculated pro-rata on the number of man days completed to the estimated total project man days.
2.  REvENUE
An analysis of the Group’s revenue is as follows: 
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Continuing operations:
United Kingdom 3,771 3,946
South Africa 943 1,202
4,714 5,148
3.  OPERATING SEGMENTS
eg solutions plc provides IT and software support services by operating two distinct companies in the United Kingdom 
(“EGUK”) and in South Africa (“EGSA”). Financial information is reported to the board for both companies individually with 
revenue and operating profits split by geographical location. Segment revenue comprises of sales to external customers 
and excludes finance income. Segment profit reported to the board represents the profit before tax earned by each 
segment. 
For the purposes of assessing segment performance and for determining the allocation of resources between segments, the 
board reviews the non-current assets attributable to each segment as well as the financial resources available. All assets 
and liabilities are allocated to reportable segments. Information is reported to the Board of Directors on a Company basis 
as management believe that each Company exposes the Group to differing levels of risk and rewards due to local economic 
conditions. The segment profit or loss, segment assets and segment liabilities are measured on the same basis as amounts 
recognised in the financial statements, as set out in the accounting policies.
Segment information about these companies is presented below.
UK SA Group
31.01.12
£’000
31.01.11
£’000
31.01.12
£’000
31.01.11
£’000
31.01.12
£’000
31.01.11
£’000
Revenue
External revenue 3,771 3,946 943 1,202 4,714 5,148
Inter-segment revenue 713 668 30 42 — —
Total revenue 4,484 4,614 973 1,244 4,714 5,148
Finance charges (11) (2) — — (11) (2)
Finance income 1 1 — — 1 1
Profit/(loss) before tax 366 255 (220) 100 146 355 eg solutions plc 34 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
3.  OPERATING SEGMENTS continued
UK SA Group
31.01.12
£’000
31.01.11
£’000
31.01.12
£’000
31.01.11
£’000
31.01.12
£’000
31.01.11
£’000
Other segment 
information
Total assets 3,570 3,512 302 541 3,872 4,053
Total liabilities (1,821) (1,864) (135) (109) (1,956) (1,973)
Net assets/(liabilities) 1,749 1,648 167 432 1,916 2,080
Capital expenditure
Property, plant and 
equipment 8 32 3 34 11 66
Intangible assets 861 646 — — 861 646
Depreciation 25 28 17 1 42 29
Amortisation 519 421 — — 519 421
Impairment of intangibles 12 46 — — 12 46
During the year the Group had revenues from 3 (2011: 3) customers amounting to £1,580,000 (2011: £1,689,000) in total 
that individually made up more than 10% of revenues generated. 
4.  PROFIT FROM OPERATIONS
This is stated after charging/(crediting):
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Net foreign exchange losses/(gains) 1 (10)
Impairment of intangible assets 12 46
Research and development costs expensed 345 546
Profit on disposal of property, plant and equipment — (1)
Amortisation 519 421
Depreciation
— owned assets 42 29
Operating leases 204 198 Our Governance
35 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
5.  AUDITORS’ REMUNERATION
The Group paid the following amounts to its auditors in respect of the audit of the financial statements and for other 
services provided to the Group.
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Audit of financial statements
 Baker Tilly 29 27
Other fees to auditors
Local statutory audit for subsidiaries
 Baker Tilly 3 8
 Charles Orbach 16 4
Taxation services
 Baker Tilly 4 4
 Charles Orbach 1 —
Other services
 Baker Tilly 3 8
 Charles Orbach 1 —
28 24
6.  STAFF COSTS AND DIRECTORS’ EMOLUMENTS
The average monthly number of employees during the year was made up as follows: 
Year 
ended 
31 January
2012
Number
Year 
ended 
31 January
2011
Number
Implementation and Training Services 12 14
Software Support and Development 17 17
Sales and Marketing 4 3
Management and Administration 8 9
41 43
The aggregate remuneration for the above persons comprised: 
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Wages and salaries 2,507 2,688
Social security costs 280 280
Share-based payment compensation 112 95
Post retirement benefits 144 155
3,043 3,218 eg solutions plc 36 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
6.  STAFF COSTS AND DIRECTORS’ EMOLUMENTS continued
Directors’ emoluments 
2012
£’000
2011
£’000
Emoluments 415 561
Money purchase pension contributions 35 28
Total 450 589
Salary 
and fees
£’000
Benefits
£’000
Other
£’000
Total 
2012
£’000
Salary 
and fees
£’000
Benefits
£’000
Other
£’000
Total 
2011
£’000
RP Baker-Bates 30 0 0 30 30 — — 30
EA Gooch 350 3 27 380 488 2 26 516
A McRae 5 0 0 5 15 — — 15
385 3 27 415 533 2 26 561
Phil Lee is not remunerated directly by the Group. The Co-operative Banking Group were paid £10,000 in compensation for 
his time.
The post retirement benefits payable by the Group in respect of each Director during the year were:
2012
£’000
2011
£’000
EA Gooch 35 28
Total 35 28
Only one director was accruing post retirement benefits under a money purchase scheme during the year.
Key Management
The key management of the Group consists of the eg solutions plc Board Directors.
The remuneration of Key Management is set out below. None of the eg solutions plc Board Directors hold any share 
options. 
Key Management Compensation
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Short-term benefits 469 627
Post retirement benefits 35 28
504 655 Our Governance
37 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
7.  FINANCE CHARGES/INCOME
Finance Charges 
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Interest on convertible loan notes 11 2
Finance Income
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Interest on bank deposits 1 1
8.  TAxATION
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Current tax:
United Kingdom (51) (12)
Tax in respect of prior years (36) (4)
(87) (16)
Deferred tax:
Origination and reversal of temporary differences 121 (100)
Tax in respect of prior years (17) (11)
Tax payable/(receivable) to the Group and its subsidiaries 17 (127)
Domestic income tax is calculated at 26% (2011: 28%) of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.  eg solutions plc 38 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
8.  TAxATION continued
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
The charge/(credit) for the year can be reconciled to the profit per the Statement of 
Comprehensive Income as follows:
Profit before tax 146 355
Tax at the domestic income tax rate 26% (2011: 28%) 38 99
Tax effects of expenses that are not deductible in determining taxable profit 54 86
Share-based payments 39 (106)
Rate difference on deferred tax (1) (2)
Research and development (171) (106)
Losses surrendered for R&D tax credit 53 11
Recognition of previously unrecognised losses — (47)
Prior year items (53) (15)
Movement in unprovided deferred tax 58 (47)
Tax charge/(credit) 17 (127)
Effective tax rate for the year 12% (36%)
9.  DIvIDENDS
In respect of the current year, the directors propose that no dividend will be paid to shareholders (2011: £nil).
10.  EARNINGS PER ORDINARY SHARE
From continuing operations
Year
ended
31 January
2012
Year
ended
31 January
2011
Weighted average number of shares in issue 14,293,847 14,293,847
Weighted average number of shares held by the Employee Benefit Trust (1,365,347) (1,112,415)
Weighted average number of shares for calculating basic earnings per share 12,928,500 13,181,432
Weighted average number of shares for the purposes of basic earnings per share 12,928,500 13,181,432
Effect of dilutive potential ordinary shares
— Convertible loan notes 172,800 172,800
— Share options 434,164 357,395
Weighted average number of shares for the purposes of diluted earnings per share 13,535,464 13,711,627
Year
ended
31 January
2012
£’000
Year
ended
31 January
2011
£’000
Basic earnings attributable to equity shareholders 129 482
Effect of dilutive potential ordinary shares
— Interest on convertible loan notes (net of tax) 8 2
Earnings for the purposes of diluted earnings per share 137 484 Our Governance
39 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
10.  EARNINGS PER ORDINARY SHARE continued
Year
ended
31 January
2012
Year
ended
31 January
2011
Basic earnings per share 1.0p 3.7p
Diluted earnings per share 1.0p 3.5p
EPS has been calculated using the following methodology:
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the number of 
weighted average ordinary shares during the period. The number of shares excludes shares held by an Employee Benefit 
Trust (see note 26 Share-based Payments).
For diluted earnings per share, the number of ordinary shares in issue is adjusted to assume conversion of all dilutive 
potential ordinary shares. These represent share options granted to employees and 5% Convertible Loan Notes.
11.  GROUP AND COMPANY — INTANGIBLE ASSETS 
Development 
costs
£’000
Intellectual 
property 
£’000
Total 
intangibles 
£’000
Cost 
At 1 February 2010 2,273 — 2,273
Acquisitions – internally developed 646 — 646
Acquired through business combinations — 498 498
Disposals due to impairment (49) — (49)
At 1 February 2011 2,870 498 3,368
Acquisitions – internally developed 861 — 861
Disposals due to impairment (12) — (12)
At 31 January 2012 3,719 498 4,217
Amortisation and impairment
At 1 February 2010 568 — 568
Amortisation for the year 330 91 421
Disposals from impairment (3) — (3)
At 1 February 2011 895 91 986
Amortisation for the year 419 100 519
Disposals from impairment — — —
At 31 January 2012 1,314 191 1,505
Carrying amount
At 31 January 2012 2,405 307 2,712
At 31 January 2011 1,975 407 2,382
Amortisation and impairment have been included in cost of sales in the Consolidated Statement of Comprehensive Income.
Intangibles impaired during the year relate to software development on products that management have classified as not 
being part of the future software roadmap. eg solutions plc 40 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
12.  GROUP — PROPERTY, PLANT AND EqUIPMENT
Computer 
and Office 
Equipment
£’000
Fixtures 
and Fittings
£’000
Motor 
vehicles
£’000
Leasehold 
Improvements
£’000
Total
£’000
Cost
At 1 February 2010 492 18 6 4 520
Additions 26 33 — — 59
Acquired through business 
combinations 7 — — — 7
Disposals (1) — — — (1)
Translation differences 4 — — — 4
At 31 January 2011 528 51 6 4 589
Additions 10 1 — — 11
Reclassification — (16) — 16 —
Disposals — — — — —
Translation differences (5) (3) — — (8)
At 31 January 2012 533 33 6 20 592
Accumulated depreciation
At 1 February 2010 456 7 6 1 470
Depreciation charge for the year 22 6 — 1 29
Disposals (1) — — — (1)
Translation differences 4 — — — 4
At 31 January 2011 481 13 6 2 502
Depreciation charge for the year 29 4 — 9 42
Reclassification — (3) — 3 —
Disposals — — — — —
Translation differences (4) (1) — — (5)
At 31 January 2012 506 13 6 14 539
Net book value
At 31 January 2012 27 20 — 6 53
At 31 January 2011 47 38 — 2 87
Depreciation has been included in administrative expenses in the Consolidated Statement of Comprehensive Income. Our Governance
41 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
13.  COMPANY — PROPERTY, PLANT AND EqUIPMENT 
Computer 
and Office 
Equipment
£’000
Fixtures 
and Fittings
£’000
Motor 
vehicles
£’000
Leasehold 
Improvements
£’000
Total
£’000
Cost
At 1 February 2010 434 18 6 4 462
Additions 24 1 — — 25
Acquired through business 
combinations 7 — — — 7
Disposals (1) — — — (1)
At 31 January 2011 464 19 6 4 493
Additions 7 1 — — 8
Acquired through business 
combinations — — — — —
Disposals — — — — —
At 31 January 2012 471 20 6 4 501
Accumulated depreciation
At 1 February 2010 403 7 6 1 417
Depreciation charge for the year 25 2 — 1 28
Disposals (1) — — — (1)
At 31 January 2011 427 9 6 2 444
Depreciation charge for the year 23 1 1 25
Disposals — — — — —
At 31 January 2012 450 10 6 3 469
Net book value
At 31 January 2012 21 10 — 1 32
At 31 January 2011 37 10 — 2 49
14.  SUBSIDIARIES
Details of the Group’s subsidiaries at 31 January 2012 are as follows:
Name of subsidiary
Place of 
incorporation 
(or registration) 
and operation
Proportion 
of ownership 
interest
%
Proportion 
of voting 
power held
%
Principal 
activity
eg International Ltd UK 100 100 Dormant
eg USA Inc USA 100 100 Dormant
eg solutions EBT Limited UK 100 100 Dormant
eg Operations Management (Pty) Ltd South Africa 100 100 Consultancy 
and Software
eg solutions Group Ltd UK 100 100 Dormant
XTAQ Ltd UK 100 100 Dormant
The operating costs in relation to dormant companies are incurred through the Parent Company.
The cost of investments in subsidiary companies is £11 in total and is not included on the face of the Company Statement 
of Financial Position due to rounding. eg solutions plc 42 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
15.  GROUP — TRADE AND OTHER RECEIvABLES 
2012
£’000
2011
£’000
Trade receivables 736 456
Less provision for impairment — (14)
Net trade receivables 736 442
Other receivables 10 11
Prepayments and accrued income 174 343
Director’s loan (see note 32) 61 272
981 1,068
Ageing analysis of trade receivables past due but not impaired:
2012
£’000
2011
£’000
Up to 30 days overdue 142 —
31-90 days overdue 5 13
Over 91 days overdue 1 9
148 22
An analysis of the provision for impairment of receivables is as follows:
2012
£’000
2011
£’000
At beginning of year 14 —
Charge for year — 14
Utilised in year (14) —
At end of year — 14
16.  COMPANY — TRADE AND OTHER RECEIvABLES 
2012
£’000
2011
£’000
Trade receivables 522 148
Prepayments and accrued income 146 216
Director’s loan (see note 32) 61 272
729 636
Ageing analysis of trade receivables past due but not impaired:
2012
£’000
2011
£’000
Up to 30 days overdue 122 —
31-90 days overdue 5 12
Over 91 days overdue 1 5
128 17
The Company has no trade receivables which require provision for impairment as at 31 January 2012 and 31 January 2011. Our Governance
43 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
17.  GROUP AND COMPANY — INvENTORIES 
2012
£’000
2011
£’000
Consumables 11 18
18.  GROUP — CASH AND CASH EqUIvALENTS
2012
£’000
2011
£’000
Cash at bank and in hand 64 487
The Group has a £0.50m overdraft facility with The Co-operative Bank which expires on 16 March 2013. The overdraft 
attracts interest at 3.25% over the Bank’s published Base Rate.
The bank hold a debenture giving fixed and floating charge over all assets of the Group.
19.  COMPANY — CASH AND CASH EqUIvALENTS 
2012
£’000
2011
£’000
Cash at bank and in hand 31 416
20.  GROUP — TRADE AND OTHER PAYABLES 
Trade and other payables are as follows:
2012
£’000
2011
£’000
Payments on account 7 336
Trade payables 249 272
Other tax and social security 277 309
Accruals and deferred income 901 642
1,434 1,559
21.  COMPANY — TRADE AND OTHER PAYABLES 
2012
£’000
2011
£’000
Payments on account 7 336
Trade payables 238 253
Other tax and social security 242 264
Accruals and deferred income 810 597
1,297 1,450 eg solutions plc 44 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
22.  OBLIGATIONS UNDER OPERATING LEASES 
The Group has entered into commercial leases on certain properties and items of equipment. These leases have an average 
duration of between 1 and 5 years. 
Future minimum rentals payable under non-cancellable operating leases are in aggregate as follows:
Amounts due:
2012
£’000
2011
£’000
Within one year 145 151
Between one and five years 57 203
202 354
23.  GROUP — DEFERRED TAx 
2012
£’000
2011
£’000
Analysis for financial reporting purposes:
Deferred tax liabilities 678 643
Deferred tax assets (297) (366)
Net position at 31 January 381 277
Unprovided deferred tax asset 192 82
The movement in the year in the Group’s net deferred tax position was as follows:
2012
£’000
2011
£’000
At 1 February 277 254
Charge/(credit) to income for the year 121 (100)
On acquisition of XTAQ Ltd — 134
Adjustment in respect of prior year (17) (11)
At 31 January 381 277
The following are the major deferred tax liabilities and assets recognised by the Group and the movements thereon during 
the year:
Deferred tax liabilities
Accelerated 
tax 
depreciation
£’000
Intellectual 
property
£’000
Total
£’000
At 1 February 2010 477 — 477
Charge to income for the year 75 (26) 49
On acquisition of XTAQ Ltd — 134 134
Adjustment in respect of prior year (17) — (17)
At 31 January 2011 535 108 643
Charge to income for the year 108 (25) 83
Adjustment in respect of prior year (42) (6) (48)
At 31 January 2012 601 77 678 Our Governance
45 Stock code: EGS
21314-04    20/04/2012    Proof 5
Our Business Our Accounts
23.  GROUP — DEFERRED TAx continued
Deferred tax assets
Property, 
plant and 
equipment
£’000
Share-
based 
payments
£’000
Tax losses
£’000
Total
£’000
At 1 February 2010 (7) (9) (207) (223)
Charge/(credit) to income for the year 4 (106) (47) (149)
Adjustment in respect of prior year — — 6 6
At 31 January 2011 (3) (115) (248) (366)
Charge/(credit) to income for the year (1) 39 — 38
Adjustment in respect of prior year — 9 22 31
At 31 January 2012 (4) (67) (226) (297)
At the reporting date, the Group has unused UK tax losses of £915,000 (2011: £915,000) available for offset against future 
profits. A deferred tax asset of £226,000 (2011: £248,000) has been recognised in respect of such losses where realisation 
of the related tax benefit through future taxable profits is probable.
In addition the Group has overseas tax losses in South Africa of £637,000 (2011: £452,000), a deferred tax asset of 
£178,000 (2011: £82,000) has not been recognised due to uncertainty of future profits.
24.  COMPANY — DEFERRED TAx
2012
£’000
2011
£’000
Analysis for financial reporting purposes:
Deferred tax liabilities 678 643
Deferred tax assets (297) (366)
Net position at 31 January 381 277
The movement in the year in the Company’s net deferred tax position was as follows:
2012
£’000
2011
£’000
At 1 February 277 254
Charge/(credit) to income for the year 121 (100)
On acquisition of XTAQ Ltd — 134
Adjustment in respect of prior year (17) (11)
At 31 January 381 277 eg solutions plc 46 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
24.  COMPANY — DEFERRED TAx continued
The following are the major deferred tax liabilities and assets recognised by the Company and the movements thereon 
during the year:
Deferred tax liabilities
Accelerated 
tax 
depreciation
£’000
Intellectual 
property
£’000
Total
£’000
At 1 February 2010 477 — 477
Charge to income for the year 75 (26) 49
On acquisition of XTAQ Ltd — 134 134
Adjustment in respect of prior year (17) — (17)
At 31 January 2011 535 108 643
Charge to income for the year 108 (25) 83
Adjustment in respect of prior year (42) (6) (48)
At 31 January 2012 601 77 678
Deferred tax assets
Property, 
plant and 
equipment
£’000
Share-based 
payments
£’000
Tax losses
£’000
Total
£’000
At 1 February 2010 (7) (9) (207) (223)
Charge to income for the year 4 (106) (47) (149)
Adjustment in respect of prior year — — 6 6
At 31 January 2011 (3) (115) (248) (366)
Charge/(credit) to income for the year (1) 39 — 38
Adjustment in respect of prior year — 9 22 31
At 31 January 2012 (4) (67) (226) (297)
At the reporting date, the Company has unused tax losses of £915,000 (2011: £915,000) available for offset against future 
profits. A deferred tax asset of £226,000 (2011: £248,000) has been recognised in respect of such losses where realisation 
of the related tax benefit through future taxable profits is probable.
25.  GROUP AND COMPANY SHARE CAPITAL 
2012
£’000
2011
£’000
Authorised
50,000,000 ordinary shares of 1p each 500 500
£’000 £’000
Allotted issued and fully paid
14,293,847 ordinary shares of 1p each 143 143
There were no movements in the share capital of the Company in either the 2012 or 2011 reporting periods.
The Company has one class of ordinary shares which carry no right to fixed income. During the year ended 31 January 
2012, the Group granted no share options (2011: 1,460,938) under the Group’s share option plan (Note 26). Our Governance
47 Stock code: EGS
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Our Business Our Accounts
26.  SHARE-BASED PAYMENTS 
Equity-Settled Share Option Plan
The Group plan provides for a grant price equal to the average quoted market price of the Group shares on the date of 
grant. The vesting period is 4 years. If options remain unexercised after a period of 10 years from the date of grant, the 
options expire. A number of options also contain performance objectives within the vesting criteria.
Furthermore, options are forfeited if the employee leaves the Group before the options vest. 
2012 2011
Options
Weighted 
average 
exercise 
price (£) Options
Weighted 
average 
exercise 
price (£)
Outstanding at 1 February 1,900,285 0.43 892,500 0.37
Granted during the year — — 1,460,938 0.54
Forfeited during the year (8,000) 0.25 (373,153) 0.48
Exercised during the year (20,000) 0.04 (80,000) 0.04
Expired during the year — — — —
Outstanding at 31 January 1,872,285 0.43 1,900,285 0.43
Exercisable at 31 January 78,000 0.39 98,000 0.04
The options outstanding at 31 January 2012 had an exercise price between 3.5 pence and 161.5 pence, and a weighted 
average remaining contractual life of 7.56 years (2011: 8.55 years).
Share options are available to all employees who have completed their probation period.
eg solutions Plc Employee Benefit Trust Ltd holds 1,516,470 (2011: 1,036,470) ordinary shares of 1p, being 10.6% 
(2011: 7.25%) of the called up capital.
27.  RECONCILIATION OF GROUP PROFIT BEFORE TAx TO NET CASH GENERATED BY OPERATIONS 
2012
£’000
2011
£’000
Profit before tax 146 355
Adjustments for:
Depreciation of property, plant & equipment 42 29
Profit on disposal of property, plant & equipment — (1)
Amortisation of intangible assets 519 421
Impairment of intangible assets 12 46
Write off of the excess of fair value over consideration — (9)
Finance income (1) (1)
Finance costs 11 2
Share option charge 112 95
Operating cash flows before movements in working capital 841 937
Decrease/(increase) in receivables 27 (233)
(Decrease)/increase in payables (126) 36
Cash generated by operations 742 740 eg solutions plc 48 Annual Report & Accounts 2012
21314-04    20/04/2012    Proof 5
Notes to the Group Financial Statements continued
for the year ended 31 January 2012
28.  RECONCILIATION OF COMPANY PROFIT BEFORE TAx TO NET CASH GENERATED BY OPERATIONS 
2012
£’000
2011
£’000
Profit before tax 367 255
Adjustments for:
Depreciation of property, plant & equipment 25 28
Profit on disposal of property, plant & equipment — (1)
Amortisation of intangible assets 519 421
Impairment of intangible assets 12 46
Write off of the excess of fair value over consideration — (9)
Finance income (1) —
Finance costs 11 2
Share option charge 112 95
Operating cash flows before movements in working capital 1,045 837
Increase in receivables (111) (22)
(Decrease)/increase in payables (152) 2
Cash generated by operations 782 817
29.  GROUP — FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
The main financial risks faced by the Group relate to the risk of default to financial transactions by customers, availability of 
funds to meet the Group’s needs and fluctuations in foreign exchange rates. These risks are managed as described below. 
An explanation of the Group’s financial instrument risk management objectives and policies are set out in the Director’s 
Report on pages 16 to 18.
Policies for managing financial risks are governed by Board approved policies and procedures. Any proposed changes will 
be considered by the Board prior to such changes being implemented.
The key risks that the Group faces from a treasury perspective are as follows:
Liquidity Risk
Cashflow is managed on a daily, short-term and longer term basis and management is therefore able to ensure that the 
Group has sufficient cash or facilities to meet all its commitments. The Group ensures that there is sufficient cash and 
working capital facilities to meet the cash requirements of the Group from the current business plan.
Forecast liquidity is reviewed weekly by management.
The Group has an agreed overdraft facility to the 16 March 2013.
Banking covenants are monitored on a weekly basis to ensure that there are no current or potential future breaches.  
There have been no breaches of covenants during the reporting period and no breaches are foreseen over the next  
twelve months.
Market risk
Market risk includes foreign currency risk and interest rate risk.
Financial instruments affected by market risk are cash and cash equivalents. The following analysis, required by IFRS 7 
‘Financial Instruments: Disclosures’, is intended to illustrate the sensitivity to changes in market variables being UK interest 
rates and foreign exchange risk. Our Governance
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29.  GROUP — FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES continued
Foreign Currency Risk
The Group is exposed to minimal foreign currency risk through transactions with overseas customers.
The Group is however exposed to exchange fluctuations that affect the company’s net investment in its overseas subsidiary.
The impact on the Group’s net assets from foreign currency volatility is shown in the sensitivity below. 
The sensitivity analysis has been prepared on the basis that the amount of net assets in foreign currencies are all constant.
It should be noted that the sensitivity analysis reflects the impact on income and equity due to the Company’s net 
investment in its overseas operation held at the reporting date. It does not reflect any change in revenue or costs that may 
result from changing interest or exchange rates.
The following assumptions were made in calculating the sensitivity analysis:
• UK interest rates are forecast to increase by 1%
• South African Rand will convert at 14 rand to the British Pound.
Using the above assumptions the following table shows the illustrative effect on the Group Statement of Comprehensive 
Income and equity that would result from changes in UK interest rates and in exchange rates:
2012 2011
Income 
gain/(loss)
£’000
Equity 
gain/(loss)
£’000
Income 
gain/(loss)
£’000
Equity 
gain/(loss)
£’000
Assets:
1% increase in UK interest rates — — 4 —
South African Rand to GBP convert at 14  
(2011: 14) — (20) — (79)
Interest rate risk
Interest rate risk arises from cash and cash equivalents and is not considered to be a significant risk for the Group. The 
only interest bearing assets relate to cash and cash equivalents exposed to a floating interest rate. All other assets and 
liabilities are non interest bearing. 
Price Risk
The Group’s products are tailored to realise benefits for customers and to meet individual requirements. Prices are 
negotiated with each customer on the basis of their specification of the product.
Credit Risk 
Credit risk arises from cash and cash equivalents and trade and other receivables. With eg’s exposure to the Financial 
services sector detailed reporting is provided weekly on the debt position and if required the Group will resort to legal 
action to recover any monies due after a sufficient period of time.
Capital risk 
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and 
operate within current available facilities. This is reviewed by the Board on a monthly basis.
The Group manages its share capital and reserves as its Group capital. eg solutions plc 50 Annual Report & Accounts 2012
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Notes to the Group Financial Statements continued
for the year ended 31 January 2012
29.  GROUP — FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES continued
The following table is a comparison by category of the carrying amounts and the fair values of the Group’s financial 
instruments at 31 January 2012 and 31 January 2011.
2012
Carrying
value
£’000
2012
Fair
value
£’000
2011
Carrying
value
£’000
2011
Fair
value
£’000
Loans and receivables:
Cash and cash equivalents 64 64 487 487
Trade and other receivables 807 807 725 725
Total financial assets 871 871 1,212 1,212
Other financial liabilities
Trade payables 249 249 272 272
5% Convertible loan note 141 141 137 137
Total financial liabilities 390 390 409 409
Net financial assets 481 481 803 803
2012
£’000
2011
£’000
Trade and other receivables:
Financial assets in the scope of IAS 39 807 725
Other assets 174 343
981 1,068
2012
£’000
2011
£’000
Trade and other payables:
Financial liabilities in the scope of IAS 39 249 272
Other liabilities 1,185 1,287
1,434 1,559
The total financial assets included in the table above represent the maximum exposure to credit risk the Group faces.
The Group has not recognised impairment provisions against the trade receivables past due summarised on page 42 as 
they are considered to be recoverable based on our customer base being largely blue chip and the previous trading history. 
There is no objective evidence that the amounts will not be collected.
The Group has not provided any amount for bad debts. (2011: £14,000).
The directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectible.
Fair value assumptions
The fair value of all financial instruments approximate to their carrying value.
Short-term deposits – the fair value of short-term deposits and overdrafts approximates to the carrying value because of 
the short maturity of these instruments. Our Governance
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30.  COMPANY — FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
2012
Carrying
value
£’000
2012
Fair
value
£’000
2011
Carrying
value
£’000
2011
Fair
value
£’000
Loans and receivables:
Cash and cash equivalents 31 31 416 416
Trade and other receivables 583 583 420 420
Total financial assets 614 614 836 836
Other financial liabilities
Trade and other payables 238 238 253 253
5% Convertible loan notes 141 141 137 137
Total financial liabilities 379 379 390 390
Net financial assets 235 235 446 446
2012
£’000
2011
£’000
Trade and other receivables:
Financial assets in the scope of IAS 39 583 420
Other assets 146 216
729 636
2012
£’000
2011
£’000
Trade and other payables:
Financial liabilities in the scope of IAS 39 238 253
Other liabilities 1,059 1,197
1,297 1,450
The total financial assets included in the table above represent the maximum exposure to credit risk the Company faces.
The Company has not recognised impairment provisions against the trade receivables past due summarised on page 42 as 
they are considered to be recoverable based on our customer base being largely blue chip and the previous trading history. 
There is no objective evidence that the amounts will not be collected.
The Company has not provided any amount for bad debts (2011: Nil). 
The Directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectible. 
Fair value assumptions
The fair value of all financial instruments approximate to their carrying value.
Short-term deposits and borrowings – the fair value of short-term deposits, loans and overdrafts approximates to the 
carrying value because of the short maturity of these instruments.
31.  POST EMPLOYMENT BENEFITS
Employees are offered membership of the eg solutions Pension Plan, a defined contribution pension arrangement. The cost 
of contributions to the scheme is charged to the Consolidated Statement of Comprehensive Income in the period that they 
arise. The contributions to the scheme for the period amounted to £144,000 (2011: £155,000) representing 3%-10% of 
pensionable salaries. The amounts outstanding at the year end were £13,000 (2011: £13,000). eg solutions plc 52 Annual Report & Accounts 2012
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Notes to the Group Financial Statements continued
for the year ended 31 January 2012
32.  RELATED PARTY TRANSACTIONS
A Director’s loan of £61,000 (2011: £272,000) was due from EA Gooch at 31 January 2012. The loan is interest free with 
no specific repayment terms and the maximum amount outstanding during the year was £61,000 (2011: £272,000). During 
May 2012 EA Gooch will sell shares to the eg solutions Employee benefit Trust which fulfils a need within the trust for 
oversubscribed share options. EA Gooch has agreed that these proceeds will be used to repay the Director’s loan 
outstanding.
During the year on 25 May 2011 EA Gooch sold 500,000 shares to the eg solutions Employee Benefit Trust for 
consideration of £348,000.
In the ordinary course of business, sales and purchases of services take place between EGUK and EGSA. Sales of software, 
consultancy and management services from EGUK to EGSA totalled £713 ,000 (2011: £668,000). Sales of software services 
from EGSA to EGUK totalled £30,000 (2011: £42,000). All transactions are recorded on an intercompany account.
The Co-operative Banking Group were paid £10,000 during the year in relation to Phil Lee in compensation for his time.
At 31 January 2012 EGUK had a balance receivable from EGSA of £833,000 (2011: £817,000). This inter company balance 
is interest free and is repayable on demand.
EA Gooch is the ultimate controlling party.
33.  CONvERTIBLE LOAN NOTES 
Convertible loan notes
5% Convertible loan notes were issued at par on 5 October 2010 for £142,560. 
On the second anniversary of their issue the Loan Notes are repayable or convertible into New Ordinary Shares at a share 
price of 82.5p. The Company may require holders to convert if, for at least 20 consecutive business days, the average share 
price of an ordinary share in the Company shall be 82.5p. The Noteholder Majority shall have the right to serve a 
Conversion Notice on the Company (not less than 7 Business Days prior to the second anniversary of the creation and issue 
of the Notes) to convert all of the Notes outstanding into fully paid Ordinary Shares at a price of 82.5p per Share.
If the notes are not converted they will be redeemed on the redemption date at par.
These instruments have been treated as compound financial instruments with the net proceeds received from the issue 
being split between the liability and equity. The equity component represents the fair value of the embedded option to 
convert the liability into equity of the Group. 
£’000
Nominal value of convertible loan notes issued 143
Fair value of equity component (8)
Liability component at date of issue 135
Interest accrued 2
Liability component at 31 January 2011 137
Interest accrued 11
Interest paid (7)
Liability component at 31 January 2012 141
The Directors estimate the fair value of the convertible loan notes to be approximately £143,000 (2011: £143,000).
The Directors estimate the fair value of the liability element to be approximately £141,000 (2011: £137,000) based on the 
present value of future cash flows discounted at 8%.  Our Governance
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Our Business Our Accounts
Notice of Meeting
To the holders of ordinary shares
Notice is hereby given that the annual general meeting of the Company will be held at the Institute of Directors Business Centre, 
116 Pall Mall, London, SW1Y 5ED on Wednesday 6 June 2012 at 10.30 am, to consider and if thought fit, approve the following 
resolutions:
As Ordinary business
1. That the Directors’ Report and the annual report and accounts for the year ended 31 January 2012 be adopted and 
approved. 
2. That the Directors’ Remuneration for the year ended 31 January 2012 be approved. 
3. That Baker Tilly UK Audit LLP be reappointed as auditors and the Directors be authorised to fix their remuneration.
As Ordinary resolution
4. That the Directors of the Company be generally and unconditionally authorised (without prejudice to all subsisting 
authorities) pursuant to Section 549, 551 and 559 of the Companies Act 2006 to exercise all the powers of the Company to 
allot all the authorised but unissued shares in the capital of the Company (being relevant securities within the meaning of 
Section 549(1)-(3), 551(1) and 559 of the said Act), such authority to expire at the conclusion of the next annual general 
meeting of the Company or, if earlier, on the expiry of 15 months from the passing of this resolution, save that the 
Company may make offers or agreements before such expiry which would or might require relevant securities to be allotted 
after such expiry and the Directors may allot relevant securities in pursuance of such an offer or agreement as if the 
authority conferred thereby had not expired.
As Special resolution
5. That the Directors of the Company be empowered pursuant to Section 570 to 573 of the Companies Act 2006 to allot for 
cash equity securities (as defined for the purposes of Section 560 to 568 and 570 to 577 of the said Act) as if Section 
561(1) did not apply to any such allotment provided that the power conferred by this resolution shall be limited to the 
allotment of equity securities (a) up to an aggregate nominal amount of £14,294 being approximately 10% of the 
Company’s issued share capital or (b) in connection with an offer of equity securities by way of rights to the holders of 
existing shares in proportion (as nearly as may be) to their respective holdings of ordinary shares on a record date fixed by 
the Directors but subject to such exclusions or other arrangements as the Directors may consider necessary or expedient to 
deal with any legal or practical problems under the laws or the requirements of any regulatory body or any stock exchange 
in any territory or in connection with fractional entitlements or otherwise howsoever, such power to expire at the conclusion 
of the next annual general meeting of the Company or, if earlier, on the expiry of 15 months from the passing of this 
resolution, save that the Company may make offers or agreements before such expiry which would or might require equity 
securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or 
agreement as if the power conferred thereby had not expired. 
6. To authorise the Company generally and unconditionally, pursuant to Section 693(1) and 701 of the Companies Act 2006, 
to make market purchases (as defined in Section 693 of the said Act) of up to 1,429,385 ordinary shares of 1p each in the 
capital of the Company on such terms and in such manner as the Directors of the Company may from time to time 
determine, provided that the amount paid for each share (exclusive of expenses) shall not be more than 5% above the 
average of the middle market quotation for the Company’s ordinary shares as derived from the Daily Official List of London 
Stock Exchange plc for the five business days before the purchase is made, and in any event not less than 1p per ordinary 
share; and the authority herein contained shall expire at the conclusion of the next annual general meeting of the Company 
or 15 months following the passing of this Resolution, whichever is the first to occur, provided that the Company may, 
before such expiry, make a contract to purchase its own shares which would or might be executed wholly or partly after 
such expiry, and the Company may make a purchase of its own shares in pursuant of such contract as if the authority 
hereby conferred had not expired.
By order of the Board
Secretary
20 April 2012 eg solutions plc 54 Annual Report & Accounts 2012
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Shareholder Notes Our Governance
55 Stock code: EGS
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Our Business Our Accounts eg solutions plc 56 Annual Report & Accounts 2012
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Shareholder Notes 21314-04   20/04/2012    Proof 5 21314-04   20/04/2012    Proof 5
eg solutions plc 
Barn 1,
Dunston Business Village,  
Stafford Road, Dunston, Stafford,  
Staffordshire, ST18 9AB, UK
t: +44 (0) 1785 715772 
f: +44 (0) 1785 712541
ask@eguk.co.uk 
www.eguk.co.uk
intelligent operations management