24661   8 April 2016 4:21 PM    Proof One
MANAGEMENT
METHODOLOGY
OPERATIONAL
TECHNOLOGY
CLOUD
OPTIMISATION
GO TO VENDOR
BACK OFFICE
GUARANTEED
BENEFITS
REPORTING & ANALYTICS
DIGITAL TRANSFORMATION
PLANNING AND
FORECASTING
REAL-TIME WORK
MANAGEMENT
CONTROL
OPTIMISE
IMPROVE
MULTI CHANNEL
WORK CAPTURE
BACK OFFICE
WORKFORCE
OPTIMISATION
RESULTS
DRIVEN
INNOVATE
PLANNING AND
FORECASTING
WORK
#egs
eg solutions plc 
Annual Report and Accounts  
for the year ended 31 January 2016
Stock exchange code: EGS 24661    8 April 2016 4:21 PM    Proof One
Welcome to our  
Annual Report 2016
eg solutions is a back office workforce optimisation software 
company. eg pioneered this new market space and developed  
the most complete, purpose-built workforce optimisation software  
for back offices – the only solution that manages work, people  
and end-to-end processes wherever they are undertaken,  
anywhere in the world.
Our Values
Who We Are
Our software is now used by leading UK, international and global companies in multiple 
industry sectors including financial services, healthcare and utilities. 
Using our forecasting, scheduling, real-time work management and operational analytics 
capabilities, we deliver measurable improvements in service, quality, productivity and 
regulatory compliance. When supported by our implementation and training services  
we guarantee return on investment in short timescales. 
Regardless of who is serving the customer – call centre, back offices, branches or the  
field – our solutions provide true insight into the full customer service process and  
promote world-class operational management capability.
CustomeR FoCus
We transform our customers' 
operational performance and 
their thinking about solutions 
vendors with our market 
leading solutions
We empower our customers' 
staff to deliver extraordinary  
results; and our policy of skill 
transfer and great customer 
service enables them to sustain 
their results for the long term.
AGILtY
We respond proactively with 
pace, energy and enthusiasm.
We are strong and 
resilient, never give up and 
pride ourselves on our 
unconventionality.
No-NoNseNse
We are plain speaking, open  
& honest and deliver pragmatic 
solutions to business problems. 
Our customers can rely on us 
because of our track record of 
delivery and domain expertise.
DRIveN bY ResuL ts
Fixed cost and fixed timescale 
projects delivering guaranteed 
benefits for customers is at the 
heart of what we do.
We are passionate about 
delivering on our premises and 
making a tangible difference in 
everything we do.
oNe teAm 
We work in partnership with 
our customers to deliver 
exceptional results. 
We are a caring & 
compassionate company. 
We love our customers, our 
company and each other -  
and we care about the world 
we live in and do business in.
CAN-DO VALUE #1 CAN-DO VALUE #2 CAN-DO VALUE #3 CAN-DO VALUE #4 CAN-Do v ALue #5 24661   8 April 2016 4:21 PM    Proof One
www.egsplc.com
1
Strategic Report Governance Financial Statements Shareholder Information
Strategic Report
IFC Who We Are
1 Our Performance in 2016
2 eg at a Glance
3 Chairman’s Statement
4 Chief Executive’s Statement
6 Chief Financial Officer’s Statement
7 Case Study
8 Our Marketplace
10 Our Customers
11 Case Study
12 Financial Review
14 Corporate Social Responsibility
Governance
16 Board of Directors
18 Corporate Governance
19 Directors’ Report
20 Directors’ Responsibilities in 
Preparation of the Financial 
Statements
21 Independent Auditor’s Report to  
the Members of eg solutions plc
Financials
22 Consolidated Statement of  
Comprehensive Income
23 Consolidated Statement of  
Financial Position
24 Company Statement of  
Financial Position
25 Consolidated Statement of 
Cash Flows
26 Company Statement of 
Cash Flows
27 Consolidated Statement of  
Changes in Equity
28 Company Statement of 
Changes in Equity
29 Notes to the Group Financial  
Statements
Shareholder Information
54 Notice of Meeting
58 Company Information and Advisers
Contents
Our Performance in 2016
2016
2015
£7,595
£7,542
£7,595 
(2015: £7,542)
2016
2015
£5,473
£5,274
£5,473 
(2015: £5,274)
2016
2015
72%
70%
72% 
(2015: 70%)
2016
2015
£807
£1,257
£807 
(2015: £1,257)
2016
2015
£107
£453
£107 
(2015: £453)
2016
2015
£9
£407
£9 
(2015: £407)
2016
2015
£3,195
£4,297
£3,195  
(2015: £4,297)
Revenues Gross Profit
Gross Margin % Adjusted EBITDA*
Adjusted Profit before tax* Profit before tax
Net Cash Earnings per share – diluted
2016
2015
0.7p
3.5p
0.7p 
(2015: 3.5p)
Operational Highlights
•	 Multiple contract wins with new and existing customers, including further wins  
in Telecoms, Local Government and Retail Banking
•	 Continued investment in our market-leading product with the launch of  
eg mobile
™
 and eg forecasting
™
•	 Higher Gross Margin in second half due to increased software revenues
* Adjusted EBITDA and Adjusted Profit before tax is stated prior to charges in respect of share-based payments of £98k  
(2015: £46k)
Financial Summary (£’000)
Increasing Visibility & Quality of Earnings
•	 Continued increase in order book of multi-year contracts to £17.4m (2015: £15.4m)
•	 Revenue excluding one-off deals increased 17% on prior year
•	 Strong balance sheet maintained with £3.2m cash at the year end 24661    8 April 2016 4:21 PM    Proof One
eg solutions plc annual report and accounts for the year ended 31 January 2016
2
eg at a Glance
•	 Most complete purpose built Back Office WFO Software Suite
•	 Implementation methodology based on production management techniques
•	 Fixed cost, fixed timescale and guaranteed benefit implementations with ROI in 6 months
•	 20-40% improvement in productivity while improving the end customer experience
Enterprise Workforce Optimisation solutions for the Back Office
Operational 
Intelligence 
Software Suite
Implementation & 
Training Services
•••
operational intelligence
performance you can measure
Operational 
Management 
Practice & 
Accredited Training
•••
operational management
practice you can measure
Strong Board and 
Management Team 
focused on growth
50+
Major brands
100,000+
licences
$3.0bn
Market potential
20 WEEKS
Developed market-leading 
product and pioneered a
new technology market
International blue chip client 
base of over 50 major brands; 
ﬁnancial services, outsourcers & 
utilities. High client retention 
rates and referenceability
UK Tech co. 
Established business 
with tried, tested & 
proven products
Rapid deployment 
methodology providing 
guaranteed ROI for 
global customers
Managed Cloud Services 
to increase recurring 
revenues & visibility
Increased Investment 
in Sales and Marketing 
to seize the Market 
opportunity
Strategic objective to 
become the undisputed 
global market leader
Our Strategic Objective
We guarantee improvements in work, people and process performance
✓  Service Standard Achievement
✓  End-to-end process performance
✓  Quality & Compliance
✓  Manager & Team Leader Capability
✓  Cost Reduction
...without changing existing core processes and systems!
Delivering Guaranteed Benefits in Customer Service,  
Operational Efficiency & Compliance
Transforming  
Back Office 
Operations 24661   8 April 2016 4:21 PM    Proof One
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Strategic Report Governance Financial Statements Shareholder Information
Chairman’s Statement
Underlying  
sales growth of
17%
“We have had a solid year with a continued increase in our order 
book and a strong increase in recurring revenues. We have 
invested in our product and it remains the market leader. This lays 
solid foundations for the future and we will continue to work to 
develop our sales and marketing capability to deliver on the clear 
and substantial market opportunity.”
Overview
FY2016 was a year in which eg continued 
to strengthen its market position and 
establish a platform for sustained 
profitable growth. The Group’s Order Book 
continued to grow with the majority of new 
orders based on hosted solutions over 
three years or more. 
Towards the end of the period a number 
of sales did not close as expected, 
resulting in lower than expected revenues. 
Our emphasis continues to be the 
improvement and development of our 
sales and marketing capability in the 
current year. As previously disclosed, 
FY2015 benefited from one-off sales 
totalling approximately £1.1m. Excluding 
these contracts, underlying sales growth 
was approximately 17% over the last 12 
months. Our focus on cost control during 
the year is reflected in a small profit before 
tax for the year compared to the small 
loss originally expected at the start of the 
financial year.
Demand for back office workforce 
optimisation solutions continues to grow 
in line with the global trend of businesses 
looking to improve customer service, 
operational efficiency, cost control and 
risk management. The Group’s products 
deliver guaranteed benefits for its 
customers in each of these key areas 
and we have an enviable track record of 
successful implementations and customer 
retention. This market demand, together 
with our ability to develop and deliver 
products which meet our customers’ 
needs, provides a firm foundation for  
the Group. 
The investments we have made this year 
have further strengthened our market 
position. We invested significantly in the 
Group’s product set, culminating in the 
launch in September 2015 of eg mobile
™
 
and eg forecasting
™
. Both new products 
were well received and have opened up 
a number of new sales opportunities with 
new and existing clients. 
Aspect Software Inc 
(“Aspect”)
In August 2015, Bob Krakauer was 
appointed Non-Executive Director, 
replacing Spence Mallder on the Board as 
a representative of Aspect.
On 9 March 2016, Aspect submitted a 
petition for bankruptcy protection in the 
U.S. Bankruptcy court for the District of 
Delaware in Wilmington (along with four 
related entities). Our current assessment 
is that there will be no impact on earnings 
for the Group.
As set out in our announcement on 
10 March 2016, we will continue to 
monitor developments and make further 
announcements as appropriate.
Capital Reduction & Articles
Taking into account feedback from 
investors and our prospects for future 
profitability, the Board will be seeking 
approval for a proposed reduction in 
capital at the AGM on 17 May 2016. 
We will also be seeking approval for an 
update to our Articles of Association in 
line with the Companies Act 2006.
Current Trading & Outlook
FY2016 has been a year where we have 
made solid progress with growing our 
order book and significantly enhancing 
our product suite, laying the foundations 
for sustainable, long-term profit growth. 
The progress we have made in increasing 
recurring revenues continues in line with 
our objective of significantly improving the 
visibility and quality of earnings.
Duncan McIntyre 
Chairman
22 March 2016 24661    8 April 2016 4:21 PM    Proof One
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4
Chief Executive’s Statement
“We are well placed to support both the digital and omni-channel 
requirements of our customers, enabling them to deliver consistent 
service and optimise performance across all channels.”
Overview
The successful placing in January 2015 
raised £3.2m to continue the investment 
required to earn our place as the global 
leader in the market we pioneered. The 
focus of the remainder of FY2016 was 
then to build on the successes of the 
prior year and increase investment in the 
fundamentals of the business to prepare 
for growth. 
Our growth strategy is based on three 
core objectives:
•	 Increasing recurring revenues to 
provide improved visibility and quality of 
earnings;
•	 Winning new customers in existing and 
new territories and across a range of 
business sectors; and
•	 Retaining our blue chip customer 
base by sustaining the tangible results 
achieved from using our software and 
Operational Management practices.
Our improved balance sheet has enabled 
us to invest for the long-term in additional 
sales resources and marketing activities to 
win new clients both in the UK and in key  
new territories. 
Our order book  
of multi-year contracts 
now stands at
£17.4m
to be recognised over 
next four years
We have also invested in developing  
our Managed Cloud Service proposition, 
including achieving ISO27001 accreditation 
to ensure we meet the information security 
requirements of our customers.
As a result, in-year revenue remained 
similar to the prior year, while recurring 
revenues increased 35% year-on-year. 
Our order book of multi-year contracts 
now stands at £17.4m, up a further 
£0.3m since our trading update in January 
2016. This revenue will be recognised 
over the next four years providing a firm 
foundation for sustained future revenue 
growth. We will continue to focus on sales 
of multi-year contracts.
Customer Base Growth
Multiple contract wins were secured with 
new and existing customers in the UK 
and in new territories. We increased our 
footprint in existing market verticals such 
as financial services and successfully 
developed business in new territories 
through partners and direct sales. Major 
new contracts during the period include:
•	 A licence extension at a major 
European bank to include Collections & 
Fraud teams;
•	 A licence extension at a global bank to 
incorporate commercial & investment 
banking;
•	 Further roll-outs for a major UK third 
party outsourcing company;
•	 Further deployments with an 
international Telecoms provider and 
a new customer win in mortgage 
lending in the USA through the Aspect 
partnership;
•	 Two new banking sector pilots in 
Europe and Australia with significant 
roll-out potential;
•	 Major upgrade for a UK banking 
customer;
•	 Contract win with the insurance division 
of a challenger bank; and
•	 Conversion of perpetual licences for an 
existing client to our Managed Cloud 
Services. 24661   8 April 2016 4:21 PM    Proof One
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Strategic Report Governance Financial Statements Shareholder Information
In addition, having secured our first 
contract in Local Government in January 
2015, over the remainder of the year we 
successfully completed deployments 
within 18 local government authorities 
around the UK. 
In December 2015, a strategic review of 
our customer value proposition by third 
party advisors concluded that customer 
satisfaction remains high, with our 
solutions described as “well packaged 
and well executed by great people”. 
Our strategy of providing excellent 
delivery based on guaranteed returns, 
together with significant and sustainable 
operational improvements, continues to 
resonate with our customers.
Market Development
The emerging back office optimisation 
market continues to develop. Businesses 
are seeking to improve the end customer 
experience across multiple channels, 
to optimise their use of resources 
across these channels and to maintain 
compliance with increasingly stringent 
regulatory and security requirements. 
With the increase in digital business, 
customer transactions are shifting from 
the traditional and physical to data-centric 
methods, giving rise to an increase in 
transactions across all channels. At 
the same time, customers now expect 
near or real-time responses, regardless 
of how they transact, and a key driver 
for businesses is to significantly reduce 
complex back office processing time and 
achieve real-time insight into the whole 
customer eco-system. 
Investment in the back office has 
traditionally been a low priority but it 
can no longer be ignored. It is a major 
contributor to the success of the 
customer experience and, according to 
Frost & Sullivan’s recent report, can often 
be the engine that drives organisational 
performance from behind the scenes.
Core functionality within the eg 
operational intelligence
®
 software suite, 
our flagship product, was designed to 
address these requirements:
•	 Multi-channel transaction capture 
to provide a single view of all work 
regardless of channel;
•	 Real-time, multi-level, multi-dimensional 
operational intelligence for customer 
operations and customer experience 
management;
•	 Efficient allocation of work to an 
increasingly disparate, mobile workforce 
wherever it is in the world, together with 
the means to automatically evaluate 
their performance.
As a result, we are well placed to support 
both the digital and omni-channel 
requirements of our customers, enabling 
them to deliver consistent service and 
optimise performance across all channels 
regardless of where their workforce is 
and, at the same time, providing true 
insight into the end-to-end customer 
journey. 
Product Development
Following the placing in January 2015, 
the Group has invested significantly 
in accelerating product development. 
Investment in R&D is up 65% on FY2015. 
We have continued to invest in our 
market-leading software to ensure we can 
continue to meet customer requirements 
“out of the box”. This has always been 
a unique selling point for our product, 
enabling our customers to quickly realise 
benefits and achieve guaranteed return on 
investment. 
As a result of this investment, two 
new products, eg forecasting
™
 
and eg mobile
™
, were launched in 
September 2015. The development of 
eg forecasting
™
 was part funded by 
Innovate UK, the UK’s innovation agency, 
through its Smart Scheme. Innovate UK 
offers funding to small and medium-sized 
enterprises to engage in R&D projects 
in the strategically important areas of 
science, engineering and technology. 
The new eg mobile
™
 product is an 
extension of the eg operational 
intelligence
®
 software suite and was 
launched at The Shard in London on 
23 September 2015. It is designed to 
enable work to be allocated to, and 
the performance monitored of, mobile 
and remote workers. It also provides 
alerts and notifications for operational 
managers on the move on KPIs that affect 
performance, such as approaching SLA 
deadlines and breaches. 
These new developments further 
enhance our product suite with advanced 
forecasting and capacity planning 
capability, as well as extending the 
reach of our software to planning teams, 
mobile workers and remote operational 
managers. 
Our software now ensures work can 
be allocated and performance can be 
optimised regardless of business channel 
and wherever work takes place in the 
world.
People
Employee engagement is also a high 
priority for our business and morale 
continues to be high. During FY2016 we 
were delighted to achieve an Outstanding 
Employer accreditation by workplace 
engagement specialists Best Companies, 
recognising our commitment to employee 
satisfaction and engagement.
The whole eg team worked extremely 
hard during the year to deliver excellent 
results for our customers throughout the 
world. I would like to thank them for their 
contribution and continuing commitment. 
Elizabeth Gooch
Chief Executive Officer
22 March 2016 24661    8 April 2016 4:21 PM    Proof One
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6
Chief Financial Officer’s Statement 
“By maintaining our focus on cost control, the Group achieved  
a profit before tax of £0.01m (2015: £0.41m) compared  
to the loss originally expected”
£3.2m
Net cash as at  
31 January 2016
Financial Results
Revenue for the year ended  
31 January 2016 was £7.60m (2015: 
£7.54m). Software licences, maintenance 
and software services contributed 86% 
of total revenue (2015: 68%) with the 
balance coming from implementation and 
training services. Full year 2015 revenue 
benefited from one-time licence fees 
and one-off support services of £1.06m. 
Excluding these, underlying sales growth 
is approximately 17%.
By maintaining our focus on cost control, 
the Group achieved a profit before tax of 
£0.01m (2015: £0.41m) compared to the 
loss originally expected. Adjusted EBITDA 
(stated prior to share based payments) 
was £0.81m (2015: £1.26m).
During the period recurring revenues 
increased 35% year-on-year. eg’s order 
book now stands at £17.4m to be 
recognised over the next four years. 
This is composed of annually renewable 
maintenance revenues and multi-year 
fixed term hosting contracts, reflecting  
our focus on signing multi-year deals.
Gross margin in the first half of the year 
was 66% but improved to 77% in the 
second half due to the high proportion 
of software licences sold. Overall gross 
margin improved 2% to 72% (2015: 
70%). Administrative expenses increased 
to £5.5m (2015: £4.8m) following 
increased investment in sales and 
marketing.
As at 31 January 2016 net cash was 
£3.2m (2015: £4.3m) following investment 
in research and development of £1.4m 
(2015: £0.85m). £0.08m cash was 
generated from financing activities  
(2015: £3.76m).   
Trade receivables were higher at £1.10m 
(2015:£0.45m) due to the timing of sales 
that were weighted towards the end of 
the year. These amounts have all now 
been received. Cash generated from 
operating activities was £0.27m for the 
period (2015: £1.73m).  
Earnings per share on a basic and 
fully diluted basis was 0.8p and 0.7p 
respectively. In the prior year the basic 
earnings per share was 3.6p and on  
a fully diluted basis 3.5p.
The Group has benefited from the 
favourable tax relief given on development 
expenditure. The tax credit in respect  
of the year was £158k (2015: £134k). 
eg has an existing strategic partnership 
and re-seller agreement with Aspect 
dating back to February 2013. Aspect 
also owns a 9.5% equity interest in eg 
and has a representative on the eg Board.
On 9 March 2016 Aspect submitted 
a petition for bankruptcy in the US 
Bankruptcy Court. Approval is sought 
under the terms of the petition for a 
consensual restructuring of Aspect’s 
debt as well as a fully underwritten rights 
offering of $60m of first-lien debt.  
General unsecured creditors of Aspect 
are to be paid in full in cash, though 
existing debt and equity lines are being 
compromised in whole or in part. It 
is understood that Aspect intends to 
complete the restructuring process by  
the end of June 2016.
Aspect have confirmed that all amounts 
due prior to the bankruptcy petition will 
be paid in full whilst amounts incurred 
post the petition will be paid after the 
restructuring is complete. Aspect believe 
that post the restructuring their balance 
sheet will be substantially stronger and 
they will be better placed in the market. 
Jonathan Kay
Chief Financial Officer
22 March 2016 "This is the best work 
position I've seen in  
5 years. As customers 
make contact with us, 
agents are able  
to provide accurate  
real-time information  
on the status of their 
enquiry. This manages 
the expectation for  
the customer of their 
end-to-end journey  
and has improved 
the overall customer 
experience - including  
a reduction in demand 
on chaser calls"
Case Study 
Optimising the flow of work in the Back Office
The customer needed to deploy the 
software suite into the live environment as 
quickly as possible with as little impact on 
their IT servlces as possible. They chose 
the eg operational intelligence
®
 software 
suite privately hosted in the 'Cloud' 
environment through eg's Managed  
Cloud Services. 
eg also delivered the eg principles 
of operational management
®
 training  
programme over the course of the  
project to ensure best practice use  
of the eg operational inlelligence
®
 
software suite. 
Results 
The customer's target was to increase 
productivity by 20% whifst maintaining  
the same workloads and resources  
- the actual delivered benefit realised was 
30% improvement in productivity, whilst 
reducing over-time. 
The customer used the eg operational 
intelligence
®
 software suite to identify 
spare short-term capacity across the 
business functions. They were able to 
quantify the volume of work, had real-time 
visibility of outstanding work, meaning 
backlogs were cleared and SLAs met. 
There is now more resource sharing and 
a tangible skills matrix in place to aid skills 
utilisation, resulting in multi-skilling people 
across the site according to business 
needs. Investing in their Team Managers, 
by the introduction of the eg principles 
of operational management
®
 training 
programme, resulted in consistency  
in the management of work, resources  
and performance across the business.  
For example, prior to the implementation, 
different departments used different 
methods to log completed work, making 
comparisons difficult. 
This leading UK energy company  
was formed through the privatisation 
of the electricity industry and various 
acquisitions. The company employ 
over 10,000 staff serving 6.5 million 
households and businesses across  
the UK 
Background
The customer needed to optimise 
workflows in the back office to deliver an 
improvement in productivity and reduce 
their 'Cost to Serve'. Key requirements 
included the need to provide real-time 
information to all levels of management 
to monitor productivity against customer 
demands and to monitor and improve 
operational efficiency. 
Objectives
Project deliverables included: 
•	 Establish a consistent methodology 
to enable the development and 
assessment of Team Managers against 
recognised operational management 
best practice.
•	 Equip the Team Managers with  
the relevant skills and knowledge  
to utilise the chosen back office 
workforce optimisation solution;  
the eg operational intelligence
®
  
software suite.
•	 Real-time visibility of progress against 
KPIs and plans.
•	 Consistent management information to 
support process improvement activities.
Solutions
A combination of three core components of 
the eg operational intelligence
®
 software 
suite were delivered: 
•	 Strategic Planrnng & Forecasting
•	 Real-Time Work Management
•	 Reporting & Analytics
A quality framework has now also been 
implemented ensuring that consistency  
is maintained. The customer now has 
visibility, control and improvement of 
the end-to-end customer journey, 
understanding of how individuals and 
teams impact on the organisations 
efficiency and as a result has reduced  
their operating costs and improved 
operational effectiveness .
Senior Operational Manager
24661   8 April 2016 4:21 PM    Proof One
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Strategic Report Governance Financial Statements Shareholder Information 24661    8 April 2016 4:21 PM    Proof One
eg solutions plc annual report and accounts for the year ended 31 January 2016
8
Our Marketplace
eg pioneered back office workforce optimisation – a new software market now beginning to emerge.
Global Workforce Management Drivers – Growth Opportunity
The Consumer Revolution
High expectations of service delivery across all channels
Increasing Regulation
Increasing requirement for greater transparency in all sectors
Improving customer experience, controlling workforce costs and increasing  
transparency are key business objectives throughout the world
“eg’s product suite has more functionality out of the box 
than any other vendor.”  24661   8 April 2016 4:21 PM    Proof One
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Strategic Report Governance Financial Statements Shareholder Information
•	 Varied, complex and multi-stage   
 processes
•	 Many input channels
•	 Variety of new and legacy systems
•	 High degree of manual interaction  
 despite the investment in technology
•	 Many locations and varied  
 working patterns
True end-to-end insight and control of the customer experience whilst optimising  
the use of resources
eg guarantees improvements in operational results in short timescales. The eg operational 
intelligence
®
 software suite provides historic, real-time and predictive Management Information 
(MI) about all the factors affecting operational performance. It enables Managers and Team Leaders 
to make the right operational decisions to effectively measure, manage and improve customer 
service delivery. 
The Back Office Problem
Back Office Workforce Optimisation
multi-channel 
transaction 
capture  
& visibility of  
all resources
Single view  
of work, people  
& processes
Capacity 
planning & line 
balancing 
Match workloads  
with resources 
available
Work 
prioritisation  
& allocation
Right people,  
right skills,  
right time
Optimise use  
of all resources
end-to-end 
process 
and service 
management 
SLA achievement 
& Transparency 
of whole  
Customer journey
Quality 
assurance  
& compliance 
monitoring 
In built regulatory 
reporting
Reduced re-work
Real-time 
predictive 
& historic 
performance 
dashboards, 
scorecards  
& analytics
MI at the touch 
of a button
Always on 24661    8 April 2016 4:21 PM    Proof One
eg solutions plc annual report and accounts for the year ended 31 January 2016
10
Our Customers
In an independent survey of our leading customers, conducted by a third party consultancy, we achieved a Net Promoter 
Score (NPS) of 54%. Any score over 50% is generally considered to be excellent, and we will use this result as a 
benchmark for future surveys.
Net Promoter Score (NPS) is a customer loyalty and satisfaction metric, based on the question: “On a 1-10 scale, where 
10 is high, how likely would you be to recommend eg to a friend or colleague?” Customers who respond with a 9 or 10 
are considered “Promoters”, customers who respond with a 7 or 8 are considered “Passives”, and those scoring 6 or 
below are ‘Detractors’. NPS is calculated as the number of Promoters less the number of “Detractors”, expressed as a 
percentage of the total sample. 
Our Global Customers
“eg have a well packaged, well  
executed product and great people.  
I am selling them into our organisation  
on a global scale.”
Customer Operations Divisions in Major Service Sector Organisations
Banks
Life, Pensions and General Insurance
Building Society / Mortgage Lenders
Utilities & Telco’s
Outsourcers / Third Party Processors
Giving Our Global Customers the Best Back Office Solutions
“The software is definitely good value.  
It gives us what we wanted. It’s robust, reliable and 
easy to use. We couldn’t really take it out, if we did 
we would end up paying much more.”
“We have seen some very big improvements from deploying eg work manager
®
. Our quality rose from 
88% to 98% because we stopped getting rework. Our response times to customers fell from ten days 
to one day, and we were seeing individual performance improvements from 50% to 100%. It has also 
enabled the business to start developing new financial services products again, where previously we 
couldn’t because of the cost of the operations needed to support those products.” 24661   8 April 2016 4:21 PM    Proof One
www.egsplc.com
11
Strategic Report Governance Financial Statements Shareholder Information
Case Study
The eg operational 
intelligence
®
 software 
suite has been an 
enabler in helping 
Geoban UK deliver 
cumulative savings  
in excess of £5m  
over the last 3 years
Case Study 
Geoban, part of the Santander Group
The Command Centre supports all 
operational teams with the following 
services: MI, Planning/Forecasting, eg 
work manager® support and performance 
planning for 10 sites supporting over 
3,000+ staff members. Through regular 
engagement with the operational teams 
all plans are reviewed and maintained 
to enable successful execution to meet 
targets around quality, control and 
productivity.
eg were engaged to optimise the effective 
use of resources within the operational 
teams. This involved a roll-out of the back 
office workforce optimisation solution 
to  a total user base of 2,200+ people. 
This was supported by an operational 
management training framework, based 
on the eg principles of operational 
management® to achieve:
•	 Consistent management practices;
•	 Improved Team Leader capability; and
•	 Measurable improvements in 
performance and capacity.
The Solution
An original pilot project had proved  
that the business could be optimised if 
real-time intra-day work management 
functionality were to be implemented. 
Geoban UK had historically used a basic 
data capture tool and had monthly planning 
models in place for some business areas 
within Geoban, but not 100% coverage and 
not at daily or intraday levels. MI delivery 
was also part of a different team.
Following the initial implementation of the  
eg operational intelligence
®
 software 
suite, the MI team joined the Command 
Centre unit and planning models were  
put in place with 100% coverage across 
Geoban UK.
Background
Geoban is part of Banco Santander 
that manages operational customer 
transactions conducted by the Group’s 
banks and financial institutions in the 
countries where it operates.
Geoban UK – a wholly owned subsidiary 
of Banco Santander and a non-profit plc 
registered in the UK, covers all operational 
activities for Santander UK and all its 
subsidiaries. A few examples are account 
opening, loan or credit card applications, 
national or international payments and/
or transfers, and servicing customer 
accounts for the bank’s retail, corporate, 
investment, cards, insurance and private 
banking customers. To manage these 
diverse and large scale operations 
Geoban UK has established Centres of 
Excellence that provide services for the 
Santander UK entities. 
The Geoban UK culture is dynamic, fast-
paced and constantly evolving; embracing 
the Simple, Personal and Fair values for 
Customers, Employees and Shareholders 
alike. Both the culture and metrics are 
focused on the end-to-end customer 
journey, operating in a continuously 
improving environment and by challenging 
themselves to constantly deliver 1% 
marginal gains in everything they do. 
Objectives
The back office Command Centre 
ensures Geoban UK effectively handles 
all work received via email, work-
flow, telephony and postal channels 
from both customers and front office 
branches within regulatory or contractual 
timescales, to the quality standard 
expected, in a controlled manner.
Using the eg principles of operational 
management
®
 training framework,   
eg worked with Geoban to create an  
in-house “Geoban Principles” framework 
to take into account the specific culture, 
policies and requirements of Geoban.
In the second phase, following 
implementation of the software, the 
Command Centre had fully embraced the 
tool and were delivering the "Flat Back 
Office" concept i.e. working with a similar 
number of resources, irrespective of peaks 
in transactional volume flowing through to 
the operational back office teams.
This was done using eg work manager
®
 
through proactively improving Quality, 
Control and Productivity. 
The specifics included:
•	 Capture of all back office work and 
resource including scheduling of training 
and holidays;
•	 Daily forecast and capacity models 
across all functions;
•	 Strategic work allocation to drive 
optimised performance and processing 
efficiency across functions;
•	 Performance analysis at an individual 
agent and task level to analyse 
variations and therefore optimise 
productivity and resource usage; and
•	 End-to-end SLA management.
Results
The project revolutionised the way the 
Command Centre operated and in 
addition to productivity benefits achieved, 
the measurement, planning and overall 
performance of the Command centre   
is exemplary. 24661    8 April 2016 4:21 PM    Proof One
eg solutions plc annual report and accounts for the year ended 31 January 2016
12
Financial Review
Overview
In the year ended 31 January 2016, 
revenue was £7.60m, an increase of 1% 
(2015: £7.54m). The Group was break 
even at the operating profit level (2015: 
profit from operations of £0.52m).
Revenue Analysis
Revenue earned in the first half of the year 
was £3.60m compared with £3.99m in 
the same period for the prior year. The 
Group grew in the second half of the year 
with revenue of £4.00m, a 13% increase 
on 2015 £3.55m. Our recurring revenues 
have increased by 35% during the year, 
largely due to the continued sales of 
multi-year hosted contracts. 
Margin Analysis
Gross margin in the first half of the year 
was 66% compared with 74% in the 
same period for the prior year. The margin 
improved in the second half to 77%, an 
increase of 11% on 2015 of 66%. This 
was due to a high proportion of software 
licences, maintenance and software 
services.
Profit Before Taxation
The Group produced a profit before 
taxation of £0.01m (2015: profit before 
taxation of £0.41m). 
Taxation
The Group has benefited from the 
favourable tax relief given on development 
expenditure. The effective rate of taxation 
credit is 1756% (2015: effective rate of tax 
credit 33%).
Earnings Per Share
Earnings per share on a basic and 
fully diluted basis was 0.8p and 0.7p 
respectively.  In the prior year the basic 
earnings per share was 3.6p and on a 
fully diluted basis 3.5p.
Results and Dividend
The trading results are set out on page 22. 
The Directors are unable to recommend 
the payment of a final dividend on the 
ordinary shares (2015: £nil).
Research and Development 
& Capital Expenditure
The Group spent £2.16m on direct 
staff and contractor costs for research 
and development, of which £1.3m 
was capitalised. An additional £0.1m, 
in relation to direct costs, was also 
capitalised. In 2015 the Group expended 
£1.6m on direct staff and contractor 
costs developing its software product 
of which £0.82m was capitalised. 
An additional £0.03m, in relation to 
direct costs, was also capitalised. The 
expenditure relates to the development of 
new and enhanced software offerings.  
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.
Future Developments
The Group has embarked upon a 
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.  During 
the year the US dormant company was 
activated to support this strategy.
Cash Flow
The Group at 31 January had interest-
earning cash balances of £3.20m and  
no overdraft (2015: interest earning cash 
balances of £4.30m and no overdraft).  
Cash outflow for the year was £1.1m 
(2015: inflow of £4.6m). 
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 opposite, 
along with comparative prior year 
performance data. 24661   8 April 2016 4:21 PM    Proof One
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13
Strategic Report Governance Financial Statements Shareholder Information
Key Performance Indicators
Note 2016 2015
Revenue A £7,595,000 £7,542,000
% Change B 1.0% 69.3%
Gross Margin % C 72.1% 69.9%
(Loss)/Profit from operations % D (0.0%) 6.9%
Profit after tax % E 2.2% 7.2%
Retained Cash Balances A £3,195,000 £4,297,000
Overdraft A £nil £nil
Cash (outflow)/inflow A (£1,097,000) £4,607,000
Research and Development Expenditure on staffing costs 
(including capitalised staff development costs)
A £2,164,000 £1,599,000
Debtor Days F 54 44
Creditor Days F 35 45
Order book G £17,400,000 £15,440,000
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.
G  Order book is calculated as annually renewable revenue streams being maintenance, rentals and 
hosting plus recurring multi-year fixed term contracts for licenses and services.
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 back office workforce 
optimisation 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 
the most foreseeable situations so that 
our business operations would continue 
should these situations occur. 
This report was approved by the Board of 
Directors on 22 March 2016 and signed 
on its behalf by:
Jonathan Kay
Chief Financial Officer
22 March 2016 24661    8 April 2016 4:21 PM    Proof One
eg solutions plc annual report and accounts for the year ended 31 January 2016
14
Corporate Social Responsibility
Outstanding Employer 
Accreditation achieved  
in 2016
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. 
Attracting and retaining talent is key to 
our strategic delivery. Employees are 
encouraged and fully supported by 
the Company should they choose to 
undertake further study and training to 
assist their professional development. 
eg has achieved Outstanding Employer 
Accreditation for 2016 from workplace 
engagement specialists Best Companies. 
The Best Companies (BCI) Index score 
rates eg as a 2 star employer, recognising 
the Company’s clear commitment to 
workplace engagement and employee 
satisfaction. The survey covers eight 
factors of employee engagement and 
general workplace satisfaction; including 
feelings towards management, rewards 
and benefits packages, workload and 
support. 
eg solutions plc is an equal opportunities 
employer. 
“We have a great team at eg 
who are really committed 
to our Company and our 
customers; they live and 
breathe our Can-Do values. 
It’s an honour to work with 
them and to be recognised 
as an outstanding 
employer.”
Elizabeth Gooch
Chief Executive Officer, eg solutions 24661   8 April 2016 4:21 PM    Proof One
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15
Strategic Report Governance Financial Statements Shareholder Information
“Most of our children come from homes where they live on grants, 
others are child headed families, while some are parented by 
teenagers who have no source of income, and together we 
continue to support them.” 
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. We 
recycle on average 1.9 tonnes of paper 
waste each year. Wherever possible eg 
uses FSC certified paper products and 
sustainable suppliers. Our UK office is 
within Dunston Business Village which 
has been awarded with various accolades 
including RICS — Best Regeneration 
Project. 
South Africa 
The South African government 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. eg are 
accredited with level 4 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 
(DNCC) as its Company charity. The 
centre provides safety, shelter, clothing, 
education, love and medical care from 
Monday to Friday 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. Here are some 
of the developments that have been 
made possible from the donations and 
fundraising that has taken place in the last 
12 months: 
•	 Provision of learning materials, books 
and toys;
•	 Educational outings;
•	 Enhanced crèche facilities including  
an outdoor play area;
•	 Ongoing caregiver’s training to improve 
knowledge and skills in caring for the 
children; and
•	 Regular e-pap supplies – epap 
is essential fortified, nutrient rich 
food formulated to address hunger. 
Important Priorities 
Child welfare — providing a safe 
environment for the children who 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, the concept of colour 
and providing access to educational toys. 
eg is the primary sponsor of DNCC and 
ensures that the crèche gets the right 
support to meet their everyday needs. 
eg have donated a minimum of R154k 
(Rand) this year to aid the development of 
the crèche.
“With eg’s continued 
support, we will be able 
to further enhance our 
facilities. The DNCC 
family truly thanks you - 
you are truly a blessing, 
not just to us but every 
family represented by our 
children.” 
Namsi Lesito
Principal, Doornkop Crèche 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
16
Board of Directors
Duncan McIntyre
Chairman
Duncan has 20 years’ experience 
of building and developing growth 
companies. He has held the position of 
Chairman and Chief Executive with a 
number of quoted and private companies, 
mainly in the technology and digital 
sectors, and is normally an active investor 
in these companies.
Duncan started his career working for 
Price Waterhouse as a qualified Chartered 
Accountant. In 1994 he joined Morse 
plc, an IT reseller and services business 
which he built into a substantial listed 
organisation. Morse incubated Monitise 
and on its demerger in 2007 he took 
up the position of Chairman until his 
retirement in late 2013 when Monitise 
had a market capitalisation of £1 billion. 
He has also held the position, from 2009, 
of Chairman of Profero Limited, a global 
digital advertising agency, which was 
successfully sold to Interpublic Inc in 
January 2014.
He currently holds the position of 
Chairman at Technetix, a supplier of 
products to cable operators, working with 
the founder to turn around the business 
which is now the leading supplier in 
Europe with strong growth prospects.
He is also Chairman of Acclimatise,  
a climate mitigation consultancy, and he 
advises Warbler Limited, a start-up which 
provides a managed platform for Mobile 
Network Operators in which he is  
an investor.
Elizabeth Gooch, MBE
Chief Executive Officer
Elizabeth Gooch started her career 
in industry, joining Forward Trust (a 
subsidiary of Midland Bank) and then 
Birmingham Midshires Building Society 
before establishing eg in 1988. Elizabeth 
pioneered the introduction of production 
management methodologies into the 
service sector and used these techniques 
as the basis for achieving improvements 
in customer service and guaranteed cost 
reduction for clients.
She designed and launched the eg 
operational intelligence
®
 software 
suite to embed best practice production 
management techniques into businesses 
in order to deliver sustainable benefits. 
eg pioneered the back office optimisation 
market, now worth approximately $3bn 
and eg’s software is now recognised as 
the most complete purpose built back 
office optimisation suite in the world.
Having successfully implemented eg’s 
solutions in large financial services 
companies, Elizabeth is recognised as a 
leading British IT entrepreneur and was 
recognised as the seventh leading female 
entrepreneur in Management Today’s top 
100 entrepreneurs for 2006 and 2007.
Elizabeth was made a Member of the 
Order of the British Empire (MBE) in 
the Queen’s Birthday Honours 2012 
in recognition of her achievements in 
delivering significant benefits for clients 
with the products she designed.
Jonathan Kay
Chief Financial Officer
Jon has over 16 years’ experience at 
board level in software and IT services 
companies, working for larger quoted 
organisations and smaller private equity 
backed businesses with responsibilities 
in the UK, EMEA, Asia Pacific and North 
America. His early career was spent at 
PwC, Kingfisher, Unilever and Capgemini 
where he performed a variety of audit, 
commercial and divisional Chief Financial 
Officer roles.
In 2001 he was appointed Group CFO 
at Fox IT where he was instrumental 
in restructuring and re-positioning the 
business for growth, he moved to Vertex 
Data Sciences in 2004 where he became 
UK CFO, at Vertex he was a key member 
of the management teams that grew and 
successfully sold the Vertex Public and 
Private Sector businesses to trade. In 
2012 he moved to Logica a FTSE 250 
company as CFO for the UK business and 
became a partner before the business 
was sold successfully to CGI.
Since then Jon set up and ran his own 
company and performed a variety of CFO 
roles in business and software services 
before joining eg solutions in November 
2014 as the Group CFO. Jon holds an 
MA from Oxford University and is a 
Chartered Management Accountant. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
John Brougham 
Non-Executive Director
During a successful international business 
career of 40 years, John has held senior 
financial and management positions in 
the telecommunications and technology 
sectors as well as Non-Executive 
Directorships with a number of public  
and private organisations.
In January 2014 he was appointed 
Non-Executive Director and Chair of 
the Finance Committee of West Herts 
Hospital Trust and, since January 2010, 
he has been a Non-Executive Director of 
Technetix Ltd. In October 2007, he was 
appointed a Non-Executive Director and 
Audit Chair of Monitise plc where in April 
2010 he became Chief Financial Officer, 
a role he fulfilled until his retirement in 
October 2012. Following an early career 
with STC plc, between 1986 and 2008 he 
was Financial Director and Board Member 
of BT Divisions, both domestic and 
international, including operations in the 
US, Netherlands, Germany, Spain,  
Ireland and Italy.
John, a Fellow of the Chartered Institute 
of Management Accountants, is a Non-
Executive Director and Chair of the Audit 
Committee.
Mark Brady
Non-Executive Director
Mark Brady is a Chartered Accountant 
and Corporate Financier with over 25 
years’ experience in advising both publicly 
quoted and private companies. Mark is 
a founding partner of SPARK Advisory 
Partners Limited, an independent mid-
market corporate advisory business, and 
has held a number of senior positions 
in other financial advisory companies. 
Mark served as Chairman of the Quoted 
Companies Alliance (“QCA”) from 2005 
to 2007, an independent membership 
organisation that champions the interests 
of small to mid-size quoted companies, 
where he also contributed to the drafting 
of the Corporate Governance Guide for 
Smaller Quoted Companies, which has 
become the standard for AIM quoted 
companies to follow.
Mark is a Fellow of the Institute of 
Chartered Accountants in England 
and Wales and a Chartered Fellow of 
the Chartered Institute for Securities & 
Investment.
Mark joined eg as a Non-Executive 
Director in May 2014; he is the Chairman 
of the Company’s Remuneration 
Committee and serves on the Audit 
Committee.
Robert Krakauer
Non-Executive Director
Robert Krakauer, joined eg’s Board as 
a Non-Executive Director in July 2015. 
He also holds the position of Executive 
Vice President and Chief Financial 
Officer for Aspect Software Inc where he 
guides the strategic financial direction 
for the company to meet the needs of 
their customers, investors and future 
prospects.
Prior to joining Aspect, Bob served 
as Interim CFO of Genesys, CFO of 
Global Foundries and Lifelock, as well 
as president and CFO of MagnaChip 
Semiconductor in Korea. He was 
previously EVP of Corporate Operations 
and CFO for ChipPAC, where he was 
part of the management team that 
successfully took the company public 
on NASDAQ. Bob also held executive 
leadership positions in finance and 
business development for AlliedSignal 
(now Honeywell), and earlier in his 
career, he dedicated more than 10 years 
to various leadership roles at several 
prominent companies in California.
Bob completed both undergraduate and 
graduate studies at Santa Clara University, 
earning a bachelor’s degree in accounting 
and an MBA with a concentration in 
operations. He has since been honoured 
by the University with induction into its 
IPO Hall of Fame. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
18
Corporate Governance
Board Structure 
and Committees
The Board is responsible to shareholders 
for the proper management of the 
Company.  A statement of Directors’ 
responsibilities in respect of the accounts 
is set out on page 20 of the 2016 annual 
report. The Non-Executive Directors have 
a particular responsibility to ensure that 
the strategies proposed by the Executive 
Directors are fully considered. To enable the 
Board to discharge its duties all Directors 
have full and timely access to all the 
relevant information. There is a procedure 
for all Directors in furtherance of their duties 
to take independent professional advice, if 
necessary at the expense of the Company. 
The Board has a formal schedule of 
matters reserved to it and meets at least 
10 times a year. It is responsible for 
overall strategy, approval of major capital 
expenditure projects and consideration of 
significant financing matters.
The following committees which have 
written terms of reference deal with 
specific aspects of the Company’s affairs:
•	 The Nomination Committee is chaired 
by the Chairman and comprises the 
Board. The Committee is responsible for 
processing candidates for appointment 
to the Board, having regard to the 
balance and structure of the Board.  
In appropriate cases recruitment 
consultants are used to assist the 
process. All Directors are subject to re-
election at least every three years.
•	 The Remuneration Committee 
is responsible for making 
recommendations to the Board on the 
Company’s framework on Executive 
remuneration and its cost. The 
Committee determines the contract 
terms, remuneration and other benefits 
for each of the Executive Directors 
and senior employees, including 
performance related bonus schemes, 
share incentive plans, pension rights 
and compensation payments. During 
the year, the Committee has been 
examining the management KPIs used 
in the Company’s performance related 
bonus schemes and share incentive 
plans and will look to introduce revised 
measures, where appropriate, in the 
current financial period. The Board 
itself determines the remuneration 
of the Non-Executive Directors. The 
Remuneration Committee is chaired 
by Mark Brady and is attended by 
Duncan McIntyre and John Brougham. 
Directors’ Remuneration is set out on 
Pages 38 and 39 of the 2016 Annual 
Report and Accounts. 
The Remuneration Committee met three 
times during the year. 
•	 The Audit Committee is chaired by 
John Brougham and is made up of 
two other Non–Executive Directors; 
Mark Brady and Duncan McIntyre. All 
three members of the committee are 
qualified accountants. The meetings 
are also attended, by invitation, by the 
Chief Executive Officer and the Chief 
Financial Officer. Its prime tasks are 
to review the scope of external audit, 
to receive regular reports from RSM 
UK Audit LLP , and to review the half 
yearly and annual accounts before they 
are presented to the Board, focusing 
in particular on accounting policies 
and areas of management judgement 
and estimation. The Committee 
is responsible for monitoring the 
controls which are in force to ensure 
integrity of the information reported to 
shareholders. The Committee acts as a 
forum for internal discussion of internal 
control issues and contributes to the 
Board’s review of the effectiveness 
of the Company’s internal controls 
and risk management systems and 
processes. The risk register is reviewed 
and scrutinised by the Committee. The 
Committee also considers the need for 
an internal audit function. It advises the 
Board on the appointment of external 
auditors and on their remuneration for 
both audit and non-audit work, and 
discusses the nature and scope of 
audit with the external auditors. The 
Committee has met five times during 
the year, there is a standing invite 
for the external auditors to attend all 
meetings.
The external auditors also meet privately 
with the Non-Executive members of the 
audit committee at least once a year.
The Audit Committee also undertakes 
a formal assessment of the auditor’s 
independence which includes:
•	 a review of the non-audit services 
provided to the Company and the 
related fees;
•	 discussion with the auditors of a written 
report detailing all relationships with the 
Company and any other parties that 
could affect the independence or the 
perception of independence;
•	 a review of the auditors’ own 
procedures for ensuring the 
independence of the audit firm and 
partners and staff involved in the audit, 
including the regular rotation of the 
audit partner; and
•	 obtaining written confirmation from 
the auditor that, in their professional 
judgement, they are independent.
Internal Control
The Directors are responsible for the 
Group’s system of internal control and 
reviewing its effectiveness. The Board has 
designed the Group’s system of internal 
control in order to provide the Directors 
with reasonable assurance that its assets 
are safeguarded, that transactions are 
authorised and properly recorded and 
that material errors and irregularities are 
either prevented or would be detected 
within a timely period. However, no system 
of internal control can eliminate the risk 
of failure to achieve business objectives 
or provide absolute assurance against 
material misstatement or loss.
The key elements of the control system in 
operation are:
•	 the Board meets regularly with a 
formal schedule of matters reserved 
to it for a decision. It has put in place 
an organisational structure with clear 
lines of responsibility defined and with 
appropriate delegation of authority;
•	 there are established procedures for 
the planning, approval and monitoring 
of capital expenditure and information 
systems for monitoring the Group’s 
financial performance against approved 
budgets and forecasts; and
•	 the department heads are required to 
undertake a full assessment process 
to identify and quantify the risks that 
face their business and functions, and 
assess the adequacy of the prevention, 
monitoring and modification practices 
in place for those risks. The resulting 
risk register is regularly reviewed and 
scrutinised by the Board. In addition, 
associated control and monitoring 
procedures are reported to the Board 
to enable the Directors to review the 
effectiveness of the systems of internal 
control. The process adopted by the 
Company accords with the guidance 
contained in the document “Internal 
Control Guidance for Directors on 
the Combined Code.” Issued by the 
Institute of Chartered Accountants in 
England and Wales.
The Audit Committee receives reports 
from the external auditor on a regular 
basis and from Executive Directors of 
the Company. During the audit period, 
the Audit Committee has reviewed the 
effectiveness of the system of internal 
control as described above. The Board 
receives periodic reports from all 
Committees. 24661   8 April 2016 5:11 PM    Proof PFP
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19
Strategic Report Governance Financial Statements Shareholder Information
Directors’ Report
The Directors submit their report and the 
financial statements of eg solutions plc for 
the year ended 31 January 2016.
Principal Activity of the 
Group and Company
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 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 £3.2m 
in net cash balances and no overdraft. 
The objective is to ensure that operating 
profits are turned into cash balances 
during the year. 
The Group finances its operations through 
retained profits.
Foreign Currency Risk
The Group is exposed to minimal foreign 
currency risk through transactions with 
overseas customers.
Directors’ Interests in Shares 
Directors’ interests in the shares of the Group as at 31 January 2016, including family 
interests, were as follows:
Beneficial
Ordinary shares of 1p each 
31 January 2016
Ordinary shares of 1p each 
31 January 2015
EA Gooch 5,304,080 5,304,080
DJ McIntyre 1,117,180 1,117,180
MD Brady 100,000 100,000
JH Brougham 75,385 75,385
JW Kay 46,154 46,154
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 1,514,285 (2015: 1,514,285) shares at 
the year end.
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.
Political and Charitable 
Contributions
During the year the Group made 
charitable donations to registered 
charities of £12,464 (2015: £1,645). No 
political donations were made.
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.
Directors
The following Directors have held office 
since 1 February 2015:
EA Gooch
SA Mallder (resigned 20 August 2015)
DJ McIntyre
JH Brougham
MD Brady
JW Kay
RJ Krakauer (appointed 20 August 2015)
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 2016 were 35 days (2015: 
45 days).
Statement as to Disclosure 
of Information to the auditor
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 auditor 
is 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 RSM UK Audit 
LLP (formerly Baker Tilly UK Audit LLP), 
as auditor will be put to the members 
at the Annual General Meeting of the 
Company which will be held on 17 May 
2016 at finnCap, 60 New Broad Street, 
London, EC2M 1JJ. 
Approval
This report was approved by the Board of 
Directors on 22 March 2016 and signed 
on its behalf by:
Jonathan Kay
Chief Financial Officer
22 March 2016 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
20
Directors’ Responsibilities  
in Preparation of the Financial Statements
The Directors are responsible for 
preparing the Strategic Report, the 
Directors’ Report and the financial 
statements in accordance with applicable 
law and regulations.
Company law requires the Directors to 
prepare the Group and Company financial 
statements for each financial year. The 
Directors are required by the AIM Rules 
of the London Stock Exchange to 
prepare the 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. 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
21
Strategic Report Governance Financial Statements Shareholder Information
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 53. 
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 20, the Directors are responsible for 
the preparation of the financial statements 
and for being satisfied that they give 
a true and fair view. Our responsibility 
is to audit and express an opinion on 
the financial statements in accordance 
with applicable law and International 
Standards on Auditing (UK and Ireland).  
Those standards require us to comply 
with the Auditing Practices Board’s 
(APB’s) Ethical Standards for Auditors.
Scope of the Audit of the 
Financial Statements
A description of the scope of an audit 
of financial statements is provided 
on the Financial Reporting Council’s 
website at http://www.frc.org.uk/
auditscopeukprivate.
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 2016 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 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 Strategic Report and 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. 
 
Jonathan Lowe  
(Senior Statutory Auditor)
For and on behalf of RSM UK Audit 
LLP (formerly Baker Tilly UK Audit LLP), 
Statutory Auditor 
Chartered Accountants
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5BB
22 March 2016 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
22
Consolidated Statement of Comprehensive Income
for the year ended 31 January 2016
  Note
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Revenue 2 7,595 7,542
Cost of sales (2,122) (2,268)
Gross profit 5,473 5,274
Administrative expenses (4,666) (4,017)
Adjusted EBITDA 807 1,257
Amortisation (691) (676)
Depreciation (19) (13)
Share Option Charge (98) (46)
(Loss)/profit from operations 4 (1) 522
Finance Income 7 10 1
Finance Charges 7 – (116)
Profit before tax 9 407
Tax credit 8 158 134
Profit for the year 167 541
Other comprehensive income:
Exchange differences on translation of foreign operation (5) (17)
Total comprehensive income for the year 162 524
Profit and total comprehensive income attributable  
to equity shareholders of the Parent Company 162 524
Earnings per share
From continuing operations
Basic 10 0.8p 3.6p
Diluted 10 0.7p 3.5p 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
23
Strategic Report Governance Financial Statements Shareholder Information
Consolidated Statement of Financial Position
as at 31 January 2016
  Note
31 January
2016
£’000
31 January
2015
£’000
Assets
Non-current assets
Intangible assets 11 3,507 2,802
Property, plant and equipment 12 80 50
  3,587 2,852
Current assets
Trade and other receivables 15 1,692 758
Current tax receivable 323 58
Cash and cash equivalents 18 3,195 4,297
  5,210 5,113
Total assets 8,797 7,965
Liabilities
Current liabilities
Trade and other payables 20 2,259 1,867
  2,259 1,867
Non-current liabilities
Deferred tax liabilities 23 304 197
  304 197
Total liabilities 2,563 2,064
Net assets 6,234 5,901
Equity
Share capital 25 227 226
Share premium 7,924 7,852
Share-based payment reserve 786 702
Own shares held (1,149) (1,149)
Retained earnings (1,453) (1,634)
Foreign exchange (101) (96)
Total equity 6,234 5,901
The financial statements on pages 22 to 53 were approved by the Directors and authorised for issue on 22 March 2016 and are 
signed on their behalf by:
Jonathan Kay 
Chief Financial Officer 
22 March 2016
Company Registration Number: 02211062 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
24
Company Statement of Financial Position
as at 31 January 2016
  Note
31 January
2016
£’000
31 January
2015
£’000
Assets
Non-current assets
Intangible assets 11 3,507 2,802
Property, plant and equipment 13 80 50
Investments in subsidiaries 14 – –
  3,587 2,852
Current assets
Trade and other receivables 16 1,680 756
Inter-company receivables 17 – –
Current tax receivable 323 58
Cash and cash equivalents 19 3,186 4,261
  5,189 5,075
Total assets 8,776 7,927
Liabilities
Current liabilities
Trade and other payables 21 2,258 1,812
  2,258 1,812
Non-current liabilities
Deferred tax liabilities 24 304 197
  304 197
Total liabilities 2,562 2,009
Net assets 6,214 5,918
Equity
Share capital 25 227 226
Share premium 7,924 7,852
Share-based payment reserve 786 702
Own shares held (1,149) (1,149)
Retained earnings (1,574) (1,713)
Total equity 6,214 5,918
The financial statements on pages 22 to 53 were approved by the Directors and authorised for issue on 22 March 2016 and are 
signed on their behalf by:
Jonathan Kay 
Chief Financial Officer 
22 March 2016
Company Registration Number: 02211062 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
25
Strategic Report Governance Financial Statements Shareholder Information
Consolidated Statement of Cash Flows
for the year ended 31 January 2016
  Note
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Operating activities
Cash generated by operations 27 265 1,588
Income taxes received – 141
Net cash generated by operating activities 265 1,729
Investing activities
Purchases of intangible assets (1,396) (846)
Purchases of property, plant and equipment (49) (35)
Net cash used in investing activities (1,445) (881)
Financing activities
Proceeds from issue of ordinary shares – 3,234
Proceeds from issuance of loan notes – 499
Exercise of option shares – 26
Proceeds from exercise of warrants 73 –
Interest received 10 1
Interest paid – (1)
Net cash generated by financing activities 83 3,759
Net (decrease)/increase in cash and cash equivalents (1,097) 4,607
Cash and cash equivalents at beginning of year 4,297 (312)
Effect of foreign exchange rates (5) 2
Cash and cash equivalents at end of year 3,195 4,297 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
26
Company Statement of Cash Flows
for the year ended 31 January 2016
  Note
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Operating activities
Cash generated by operations 28 287 1,564
Income taxes received – 141
Net cash generated by operating activities 287 1,705
Investing activities
Purchases of intangible assets (1,396) (846)
Purchases of property, plant and equipment (49) (35)
Net cash used in investing activities (1,445) (881)
Financing activities
Proceeds from issue of ordinary shares – 3,234
Proceeds from issuance of loan notes – 499
Exercise of option shares – 26
Proceeds from exercise of warrants 73 –
Interest received 10 1
Interest paid – (1)
Net cash generated by financing activities 83 3,759
Net (decrease)/increase in cash and cash equivalents (1,075) 4,583
Cash and cash equivalents at beginning of year 4,261 (322)
Cash and cash equivalents at end of year 3,186 4,261 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
27
Strategic Report Governance Financial Statements Shareholder Information
Consolidated Statement of Changes in Equity
for the year ended 31 January 2016
 
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 31 January 2014 160 4,085 641 (1,201) (2,148) (79) – 1,458
Profit for the year – – – – 541 – – 541
Other comprehensive expense – – – – – (17) – (17)
Total comprehensive expense – – – – 541 (17) – 524
Share-based payments – – 61 – – – – 61
Transactions with owners in their capacity 
as owners:
Issue of convertible loan notes – – – – – – 22 22
Proceeds from shares issued 54 3,165 – – – – – 3,219
Shares issued on conversion of loan 
notes 12 602 – – – – (22) 592
Shares issued to employees – – – 52 (27) – – 25
Balance at 31 January 2015 226 7,852 702 (1,149) (1,634) (96) – 5,901
Profit for the year – – – – 167 – – 167
Other comprehensive expense – – – – – (5) – (5)
Total comprehensive expense – – – – 167 (5) – 162
Share-based payments – – 84 – 14 – – 98
Transactions with owners in their capacity 
as owners:
Shares issued on conversion of warrants 1 72 – – – – – 73
Balance at 31 January 2016 227 7,924 786 (1,149) (1,453) (101) – 6,234
The share-based payment reserve is a reserve to recognise a corresponding entry in relation to those amounts recognised  
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.
The share premium account contains the aggregate amount of the premiums received on issuing shares after the deduction  
of attributable expenses and commission.
The amount of transaction costs accounted for as a deduction from equity during the year was £nil (2015: £201,000).
Retained earnings include the accumulated profits and losses arising from the Consolidated Statement of Comprehensive Income 
excluding foreign exchange differences on translation of foreign operations.
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, which is transferred to retained earnings when  
the instrument is settled or converted. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
28
Company Statement of Changes in Equity
for the year ended 31 January 2016
 
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 31 January 2014 160 4,085 641 (1,201) (1,636) – 2,049
Loss for the year – – – – (50) – (50)
Other comprehensive expense – – – – – – –
Total comprehensive expense – – – – (50) – (50)
Share-based payments – – 61 – – – 61
Transactions with owners in their capacity as owners:
Issue of convertible loan notes – – – – – 22 22
Proceeds from shares issued 54 3,165 – – – – 3,219
Shares issued on conversion of loan notes 12 602 – – – (22) 592
Shares issued to employees – – – 52 (27) – 25
Balance at 31 January 2015 226 7,852 702 (1,149) (1,713) – 5,918
Profit for the year – – – – 125 – 125
Other comprehensive expense – – – – – – –
Total comprehensive expense – – – – 125 – 125
Share-based payments – – 84 – 14 – 98
Transactions with owners in their capacity as owners:
Shares issued on conversion of warrants 1 72 – – – – 73
Balance at 31 January 2016 227 7,924 786 (1,149) (1,574) – 6,214
The share-based payment reserve is a reserve to recognise a corresponding entry in relation to those amounts recognised 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.
The share premium account contains the aggregate amount of the premiums received on issuing shares after the deduction  
of attributable expenses and commission.
Retained earnings include the accumulated profits and losses arising from the Statement of Comprehensive Income.
Other reserves represent the equity component of the convertible loan notes, which is transferred to retained earnings when  
the instrument is settled or converted. 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
29
Strategic Report Governance Financial Statements Shareholder Information
Notes to the Group Financial Statements
for the year ended 31 January 2016
1. ACCOUNTING POLICIES
eg solutions plc is a public limited company incorporated in England, registered number 02211062, with its registered office  
at Barn 1, Dunston Business Village, Stafford Road, Dunston, Staffordshire, ST18 9AB.
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.
The Group and Company financial statements have been prepared in accordance with International Financial Reporting Standards  
as endorsed by the EU (“IFRS”) and the requirements of the Companies Act 2006 applicable to companies reporting under (“IFRS”).
The financial statements have been prepared on the historical cost and going concern basis. The principal accounting policies 
adopted are set out below.
The Company made a profit after tax of £0.1m (2015: loss after tax £0.05m) for the financial year. The Directors have taken 
advantage of the exemption available under section 408 of the Companies Act 2006 and have not presented a Statement  
of Comprehensive Income for the Company.
Going Concern
The Group manages its day-to-day working capital requirements through a combination of cash inflows from sales and tight 
management of expenses.
The Group raised £0.1m in September 2015 through issue and allotment of 112,850 shares of 1p relating to a notice to exercise 
warrants by finnCap Limited. The Group is carrying no debt at 31 January 2016. The Group has a cash balance of £3.2m at  
31 January 2016.
The Group’s forecasts and projections, for a period of not less than 12 months from the date these financial statements have been 
approved, which take account of both positive and negative variations in trading performance, show that the Group has sufficient 
headroom to operate. The Directors currently have no reason to believe that the Group could not obtain other sources of funding  
if that was required.
Having assessed current trading, the strength of customer relationships, the current sales pipeline and the growing demand for our 
product, the Directors have a reasonable expectation 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:
•	 Amendments to IAS 27: Equity Method in Separate Financial Statements
•	 Amendments to IAS 1: Disclosure Initiative
•	 Annual Improvements to IFRSs 2012 – 2014 Cycle
•	 Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods Of Depreciation and Amortisation
•	 Annual Improvements to IFRSs 2010 – 2012 Cycle 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
30
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
1. ACCOUNTING POLICIES continued
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 16 Leases expected to be effective 2019
•	 Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealised Losses expected to be effective 2017
•	 Amendments to IAS 7: Disclosure Initiative expected to be effective 2017
•	 IFRS 9 Financial Instruments expected to be effective 2018
IFRS 15 “Revenue from Contracts with Customers” has been issued but is not yet effective. It is expected to be effective 2018.  
The Directors are in the process of reviewing this standard and will report the impact on the Group in due course.
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 — 25% straight line
Office Equipment — 15% reducing balance
Fixtures and Fittings — 15% reducing balance
Motor Vehicles — 25% reducing balance
Leasehold Improvements — 20% straight line 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
31
Strategic Report Governance Financial Statements Shareholder Information
1. ACCOUNTING POLICIES continued
Impairment of Non-current Assets
At each reporting date, the Group reviews the carrying amounts of its non-current assets to determine whether there is any indication 
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated 
in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent 
from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An intangible 
asset with an indefinite useful life or that has not yet been brought into use is tested for impairment annually.
Intangible Assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from the Group’s software development is recognised only when all of the following 
conditions are met:
•	 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 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 acquired in 2010 which eg continue to benefit from. These are amortised over their useful economic lives (5 years).
Inventories
Inventories are stated at the lower of cost and net realisable value.
Retirement Benefits
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the 
Company in an independently administered fund. The amount charged to the 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. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
32
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
1. ACCOUNTING POLICIES continued
Foreign Currencies
Transactions in currencies other than sterling, the presentational and functional currency of the Group, are recorded at the rates  
of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated 
in foreign currencies are retranslated at the rates prevailing on the reporting date. Gains and losses arising on retranslation are 
included in the Statement of Comprehensive Income for the period.
On consolidation, the assets and liabilities of the Group’s overseas operations are translated at exchange rates prevailing on the 
reporting date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, 
if any, are classified as equity and transferred to the Group’s foreign exchange reserve. Such translation differences are recognised as 
income or as expenses in the period in which the operation is disposed of.
The results of overseas operations have been translated into sterling at the monthly weighted average rate of exchange for the 
period. Rand denominated assets and liabilities have been translated at the relevant rate of exchange at the reporting date of  
£1 = R22.9901 (2015: £1 = R17.4986). US Dollar denominated assets and liabilities have been translated at the relevant rate of 
exchange at the reporting date £1 = USD 1.4311.
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. 24661   8 April 2016 5:11 PM    Proof PFP
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33
Strategic Report Governance Financial Statements Shareholder Information
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.
For the purposes of the cash flow statement, cash and cash equivalents are presented net of the overdraft as these borrowings, 
which are repayable on demand, are an integral part of the Group’s cash management.
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 where the cost reflects the value of employee 
services or performance related services. 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. Where 
the cost relates to the cost of raising equity finance the cost is recognised directly in equity in the same manner as issues costs. 
Fair value is measured by use of either the Black–Scholes model or Monte Carlo model where appropriate where the value of the 
service received cannot be measured reliably. 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 Consolidated 
Statement of Comprehensive Income on a straight-line basis over the period of the lease. The Group has no finance leases.
Grants Received
All costs associated with the relevant grant project are held on the balance sheet awaiting amortisation. The income received is held 
within deferred income awaiting release against the life of the product. As the project goes live, the costs net of the government grant 
are amortised over the life of the asset. The life of the asset is 6 years unless otherwise stated. These assets are presented within 
non-current assets in the balance sheet.
If for any unforeseen circumstance a grant needs to be repaid, this shall be recognised by reducing the deferred income balance 
by the amount repayable resulting in a higher asset value to amortise. The cumulative additional amortisation that would have been 
recognised in profit or loss to date in the absence of the grant shall be recognised immediately in profit or loss. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
34
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
1. ACCOUNTING POLICIES continued
Critical Accounting Estimates and Judgements
The preparation of Group financial statements in conformity with Generally Accepted Accounting Principles requires the use  
of accounting estimates and judgements in the process of applying the Group’s accounting policies. These judgements and 
estimates are based on historical experience and management’s best knowledge of the amounts, events or actions.
Impairment of Intangible Assets
The Group takes into account the future contracted cash inflows from repeatable revenues and the risk adjusted cash flows from 
pipeline sales expected over the life of the assets under review to determine whether an impairment needs to be made or not. 
Expected cash flows from pipeline sales are adjusted to take into account the probability that they will be realised over a reasonable 
period of time based on historical experience and negotiations that have been held with management at the reporting date.
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.
Software Licences
For perpetual licences revenues are recognised once the software has been fully installed.
For subscription licences annual revenues are recognised on the date of installation and in following years on the anniversary  
of the installation date because this is the date the risk and reward passed to the customer.
Hosted Contracts
For any contracts where the Group charges one fee to cover multiple goods/services the contract value is broken down into 
separate components and each component will be recognised separately at its fair value in accordance with the Group revenue 
recognition policy.
Implementation of 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.
Intercompany Receivable
The Directors assess at the end of each reporting period whether there is any objective evidence that the intercompany receivable 
balances are impaired.  Where such evidence exists, the amount of the loss is measured as the difference between the assets 
carrying amount and the present value of estimated future cash flows. 24661   8 April 2016 5:11 PM    Proof PFP
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35
Strategic Report Governance Financial Statements Shareholder Information
2. REVENUE
An analysis of the Group’s revenue is as follows:
 
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Continuing operations:
United Kingdom 7,489 7,437
South Africa 106 105
  7,595 7,542
As a result of dealing with multinational companies, the revenue is disclosed by the entity in which it is contracted with.
The Group’s revenue can be split as follows:
 
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Licences including Hosted and Subscription 3,772 2,640
Maintenance 2,064 2,024
Professional and Implementation Services 1,759 2,878
  7,595 7,542 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
36
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
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 geographic 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.
Transactions between EGUK and EGSA are accounted for on an “arms length” basis.
Segment information about these companies is presented below:
UK SA Consolidation Adjustment Group
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
Revenue
External revenue 7,489 7,437 106 105 – – 7,595 7,542
Inter-segment revenue 103 89 110 57 213 (146) – –
Total revenue 7,592 7,526 216 162 213 (146) 7,595 7,542
Finance charges – (116) – – – – – (116)
(Loss)/Income before tax* (33) (184) (18) (27) 60 618 9 407
Tax credit 158 134 – – – – 158 134
(Loss)/Income after tax 125 (50) (18) (27) 60 618 167 541
*£60k impairment of intercompany loan recognised in the UK, however this was removed from the Group on consolidation
During the year the Group had revenues from two (2015: two) customers in the UK amounting to £3,809,000 (2015: £3,681,000) in 
total that individually made up more than 10% of revenues generated. 
A current eg client uses our software within a number of separate entities on a variety of discrete client contracts. The software is 
embedded in those contracts and consequently risk is spread across these contracts and not concentrated in the ultimate holding 
entity. None of these contracts are individually over 10%. Our second largest customer in the financial services sector has increased 
spend significantly in the year, predominantly driven by a switch to a hosted contract.
UK SA Consolidation Adjustment Group
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
31.01.16
£’000
31.01.15
£’000
Other segment information
Total assets 8,776 7,927 21 38 – – 8,797 7,965
Total liabilities (2,562) (2,009) (1) (55) – – (2,563) (2,064)
Net assets/(liabilities) 6,214 5,918 20 (17) – – 6,234 5,901
Capital expenditure
Property, plant and 
equipment 49 35 – – – – 49 35
Intangible assets 1,396 840 – – – – 1,396 840
Depreciation 19 12 – 1 – – 19 13
Amortisation 691 677 – – – – 691 677 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
37
Strategic Report Governance Financial Statements Shareholder Information
4. PROFIT FROM OPERATIONS
This is stated after charging/(crediting):
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Net foreign exchange gains (59) (23)
Research and development costs expensed 869 830
Amortisation 691 676
Impairment of intangibles – 6
Depreciation
– owned assets 19 13
Operating leases 156 155
5. AUDITOR’S REMUNERATION
The Group paid the following amounts to its auditor in respect of the financial statements and for other services provided to 
the Group.
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Audit of financial statements
RSM UK Audit LLP (Formerly Baker Tilly UK Audit LLP) 34 34
34 34
Local statutory audit for subsidiaries
Baker Tilly SVG 4 6
Audit related assurance services
RSM UK Audit LLP (Formerly Baker Tilly UK Audit LLP) 5 2
Fees for the supply of non-audit services:
Taxation compliance services
RSM UK Tax and Accounting Limited (Formerly Baker Tilly Tax and Accounting Limited) 6 3
Baker Tilly SVG – 1
Other services
RSM UK Tax and Accounting Limited (Formerly Baker Tilly Tax and Accounting Limited) 2 1
Baker Tilly SVG – 1
17 14 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
38
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
6. STAFF COSTS AND DIRECTORS’ EMOLUMENTS
The average monthly number of employees during the year was made up as follows:
Year ended
31 January
2016
Number
Year ended
31 January
2015
Number
Implementation and training services 12 15
Software Support and Development 30 20
Sales and Marketing 12 6
Management and Administration 9 10
63 51
The aggregate remuneration for the above persons comprised:
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Wages and salaries 3,831 3,583
Social security costs 454 385
Share based payment compensation 98 46
Post retirement benefits 192 176
4,575 4,190
Directors’ Emoluments
Year ended 
31 January 
2016
£’000
Year ended  
31 January 
2015
£’000
Emoluments 567 688
Money purchase pensions contributions 52 49
Total 619 737
Salary
and 
fees
£’000
Benefits
£’000
Bonus
£’000
Other
£’000
Total  
31 January
2016
£’000
Salary
and 
fees
£’000
Benefits
£’000
Bonus
£’000
Other
£’000
Total  
31 January
2015
£’000
EA Gooch 240 4 – 27 271 240 3 102 27 372
PM Hoban (resigned 22 October 2014) – – – – – 109 1 – 8 118
SA Mallder (resigned 20 August 2015) – – – – – – – – – –
DJ McIntyre 88 – – – 88 123 – – – 123
MD Brady 30 – – – 30 22 – – – 22
JH Brougham 30 – – – 30 25 – – – 25
JW Kay 147 1 – – 148 24 – – – 24
P Lee (resigned 1 April 2014) – – – – – 4 – – – 4
RJ Krakauer (appointed 20 August 2015) – – – – – – – – – –
535 5 – 27 567 547 4 102 35 688 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
39
Strategic Report Governance Financial Statements Shareholder Information
6. STAFF COSTS AND DIRECTORS’ EMOLUMENTS
The post retirement benefits payable by the Group in respect of each Director during the year were:
Year ended
31 January
2016
Number
Year ended
31 January
2015
Number
EA Gooch 35 40
PM Hoban (resigned 22 October 2014) – 9
JW Kay 17 –
Total 52 49
Two Directors (2015: two) were 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 of Directors.
The remuneration of key management is set out below:
Key Management Compensation
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Short-term benefits 639 776
Share-based payments 57 6
Termination benefits – –
Post retirement benefits 52 49
748 831
Directors’ Interests in Share Options
Award date
Mid market
price on
award date
Exercise
price
Options at
31 January
2016
Exercisable
from
Exercisable
to
DJ McIntyre 13/01/2015 £0.725  £0.010  400,000 13/01/2018 13/01/2025
JH Brougham 13/01/2015 £0.725  £0.010  60,000 13/01/2018 13/01/2025
MD Brady 13/01/2015 £0.725  £0.010  60,000 13/01/2018 13/01/2025
EA Gooch 22/05/2015 £0.755  £0.010  200,000 22/05/2018 22/05/2025
JW Kay 22/05/2015 £0.755  £0.010  150,000 22/05/2018 22/05/2025
The share options above were all issued under the eg solutions plc LTIP which was approved at the AGM on 13 May 2014.
During the year, 0 Directors exercised share options (2015: 0). 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
40
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
7. FINANCE CHARGES/INCOME
Finance Charges
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Interest paid – 1
Interest on convertible loan notes – 115
– 116
Finance Income
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Interest on bank deposits 10 1
8. TAXATION
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Current tax:
United Kingdom (253) (58)
Tax in respect of prior years (12) 93
(265) 35
Deferred tax:
Origination and reversal of temporary differences 107 (4)
Tax in respect of prior years – (165)
Tax receivable by the Group and its subsidiaries (158) (134)
Domestic income tax is calculated at 20.16% (2015: 21.32%) of the estimated assessable profit for the year. The change  
in applicable tax rate is due to the reduction in UK Corporation tax rates.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
The credit for the year can be reconciled to the profit per the Statement of Comprehensive Income as follows:
Profit before tax 9 407
Tax at the applicable domestic income tax rate 20.16% (2015: 21.32%) 2 87
Tax effects of expenses that are not deductible in determining taxable profit 83 32
Share-based payments (5) (43)
Research and development enhanced relief (290) (168)
Losses surrendered for R&D tax credit 99 31
Prior year items (12) (72)
Other movements (35) (1)
Tax credit (158) (134)
Effective tax rate for the year –1756% –33% 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
41
Strategic Report Governance Financial Statements Shareholder Information
9. DIVIDENDS
In respect of the current year, the Directors are unable to propose that a dividend will be paid to shareholders (2015: £Nil).
10. EARNINGS PER ORDINARY SHARE
From Continuing Operations
Year ended
31 January
2016
Year ended
31 January
2015
Weighted average number of shares in issue 22,612,445 16,674,330
Weighted average number of shares held by the Employee Benefit Trust (1,514,285) (1,543,052)
Weighted average number of shares for the purposes of basic earnings per share 21,098,160 15,131,278
Effect of dilutive potential ordinary shares
– Share options 1,434,822 231,345
Weighted average number of shares for the purposes of diluted earnings per share 22,532,982 15,362,623
Year ended
31 January
2016
£’000
Year ended
31 January
2015
£’000
Basic earnings attributable to equity shareholders 167 541
Earnings for the purposes of diluted earnings per share 167 541
Year ended
31 January
2016
Year ended
31 January
2015
Basic earnings per share 0.8p  3.6p 
Diluted earnings per share 0.7p  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.
At 31 January 2016, there were 1,588,463 (2015: 1,641,940) share options outstanding that could potentially dilute basic EPS  
in the future, but are not included in the calculation of diluted EPS because they are anti dilutive for the periods presented. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
42
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
11. GROUP AND COMPANY – INTANGIBLE ASSETS
Development
costs
£’000
Intellectual
property
£’000
Total
intangibles
£’000
Cost
At 1 February 2014 5,254 498 5,752
Acquisitions – internally developed 846 – 846
At 1 February 2015 6,100 498 6,598
Acquisitions – internally developed 1,396 – 1,396
At 31 January 2016 7,496 498 7,994
Amortisation and impairment
At 1 February 2014 2,724 390 3,114
Amortisation for the year 577 99 676
Impairment 6 – 6
At 1 February 2015 3,307 489 3,796
Amortisation for the year 682 9 691
Impairment – – –
At 31 January 2016 3,989 498 4,487
Carrying amount
At 31 January 2016 3,507 – 3,507
At 31 January 2015 2,793 9 2,802
12. GROUP – PROPERTY , PLANT AND EQUIPMENT
Computer
and Office
Equipment
£’000
Fixtures and
Fittings
£’000
Motor
Vehicles
£’000
Leasehold
Improve-
ments
£’000
Total
£’000
Cost
At 1 February 2014 195 20 6 4 225
Additions 35 – – – 35
Disposals (5) – – – (5)
Translation differences 1 – – – 1
At 1 February 2015 226 20 6 4 256
Additions 37 12 – – 49
Translation differences (3) – – – (3)
At 31 January 2016 260 32 6 4 302
Accumulated depreciation
At 1 February 2014 173 13 6 4 196
Depreciation charge for the year 12 1 – – 13
Disposals (5) – – – (5)
Translation differences 2 – – – 2
At 1 February 2015 182 14 6 4 206
Depreciation charge for the year 17 2 – – 19
Translation differences (3) – – – (3)
At 31 January 2016 196 16 6 4 222
Net book value
At 31 January 2016 64 16 – – 80
At 31 January 2015 44 6 – – 50 24661   8 April 2016 5:11 PM    Proof PFP
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43
Strategic Report Governance Financial Statements Shareholder Information
13. COMPANY – PROPERTY , PLANT AND EQUIPMENT
Computer
and Office
Equipment
£’000
Fixtures and
Fittings
£’000
Motor
Vehicles
£’000
Leasehold
Improve-
ments
£’000
Total
£’000
Cost
At 1 February 2014 178 20 6 4 208
Additions 35 – – – 35
At 1 February 2015 213 20 6 4 243
Additions 37 12 – – 49
At 31 January 2016 250 32 6 4 292
Accumulated depreciation
At 1 February 2014 158 13 6 4 181
Depreciation charge for the year 11 1 – – 12
At 1 February 2015 169 14 6 4 193
Depreciation charge for the year 17 2 – – 19
At 31 January 2016 186 16 6 4 212
Net book value
At 31 January 2016 64 16 – – 80
At 31 January 2015 44 6 – – 50
14. SUBSIDIARIES
Details of the Company’s subsidiaries at 31 January 2016 are as follows:
Name of subsidiary
Place of
incorporation
(or registration)
and operation
Proportion
of ordinary
shares held
%
Proportion of
voting power
held
%
Principal
activity
eg Operations Management Solutions (pty) Ltd South Africa 100 100 Consultancy 
and Software
eg USA Inc USA 100 100 Consultancy 
and Software
eg International Ltd UK 100 100 Dormant
eg Solutions EBT Ltd UK 100 100 Dormant
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. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
44
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
15. GROUP – TRADE AND OTHER RECEIVABLES
2016
£’000
2015
£’000
Trade receivables 1,098 451
Less provision for impairment (5) –
Net trade receivables 1,093 451
Prepayments and accrued income 599 307
1,692 758
Ageing analysis of trade receivables past due but not impaired:
2016
£’000
2015
£’000
Up to 30 days overdue 234 75
31 – 90 days overdue 724 9
Over 91 days overdue 15 2
973 86
A provision has been made for impairment losses as noted in Note 29.
16. COMPANY – TRADE AND OTHER RECEIVABLES
2016
£’000
2015
£’000
Trade receivables 1,098 450
Less provision for impairment (5) –
Net trade receivables 1,093 450
Prepayments and accrued income 587 306
1,680 756
Ageing analysis of trade receivables past due but not impaired:
2016
£’000
2015
£’000
Up to 30 days overdue 234 75
31 – 90 days overdue 724 9
Over 91 days overdue 15 2
973 86
17. COMPANY – INTERCOMPANY RECEIVABLES
An analysis of the provision for impairment of receivables is as follows:
2016
£’000
2015
£’000
At beginning of year 804 186
Charge for year 275 618
At end of year 1,079 804
The provision for impairment relates to the inter-company loan with eg Operations Management Solutions (Pty) Ltd and eg USA Inc. 24661   8 April 2016 5:11 PM    Proof PFP
www.egsplc.com
45
Strategic Report Governance Financial Statements Shareholder Information
18. GROUP – CASH AND EQUIVALENTS
2016
£’000
2015
£’000
Cash at bank and in hand 3,195 4,297
19. COMPANY – CASH AND CASH EQUIVALENTS
2016
£’000
2015
£’000
Cash at bank and in hand 3,186 4,261
20. GROUP – TRADE AND OTHER PAYABLES
Trade and other payables are as follows:
2016
£’000
2015
£’000
Trade payables 368 372
Other tax and social security 413 223
Grants received 199 81
Accruals and deferred income 1,279 1,191
2,259 1,867
The total of government grants received at 31 January is in relation to product development. The grant amount may become 
repayable in the event of failing to satisfy the terms of the grant.
21. COMPANY – TRADE AND OTHER PAYABLES
Trade and other payables are as follows:
2016
£’000
2015
£’000
Trade payables 366 370
Other tax and social security 412 220
Grants received 199 81
Accruals and deferred income 1,281 1,141
2,258 1,812
The total of government grants received at 31 January is in relation to product development. The grant amount may become 
repayable in the event of failing to satisfy the terms of the grant.
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 less than 1 year.
Future minimum rentals payable under non-cancellable operating lease are in aggregate as follows:
Amounts due:
2016
£’000
2015
£’000
Within one year 38 39 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
46
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
23. GROUP – DEFERRED TAX
2016
£’000
2015
£’000
Analysis for financial reporting purposes:
Deferred tax liabilities 631 560
Deferred tax assets (327) (363)
Net position at 31 January 304 197
Unprovided deferred tax asset 145 120
The movement in the year in the Group’s net deferred tax position was as follows:
2016
£’000
2015
£’000
At 1 February 197 366
Charge/(credit) to income for the year 107 (169)
At 31 January 304 197
The following are the major deferred tax liabilities and assets recognised by the Group and the movements thereon during the year:
Deferred Tax Liabilities
Development
costs
£’000
Intellectual
property
£’000
Total
£’000
At 31 January 2014 487 41 528
Credit to income for the year 29 3 32
At 31 January 2015 516 44 560
Charge/(credit) to income for the year 115 (44) 71
At 31 January 2016 631 – 631
Deferred Tax Assets
Property,
plant and
equipment
£’000
Share-based
payments
£’000
General
provisions
£’000
Tax
losses
£’000
Total
£’000
At 31 January 2014 (1) (12) (1) (148) (162)
Charge/(credit) to income for the year 6 (40) (2) (165) (201)
At 31 January 2015 5 (52) (3) (313) (363)
Charge/(credit) to income for the year 6 – (1) 31 36
At 31 January 2016 11 (52) (4) (282) (327)
At the reporting date, the Group has unused UK tax losses of £1,568,000 (2015: £1,568,000) available for offset against future 
profits. A deferred tax asset of £282,000 (2015: £313,000) 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 £518,000 (2015: £427,000). A deferred tax asset of £145,000 
(2015: £120,000) has not yet been recognised due to uncertainty of future profits. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
24. COMPANY – DEFERRED TAX
2016
£’000
2015
£’000
Analysis for financial reporting purposes:
Deferred tax liabilities 631 560
Deferred tax assets (327) (363)
Net position at 31 January 304 197
The movement in the year in the Company’s net deferred tax position was as follows:
2016
£’000
2015
£’000
At 1 February 197 366
Charge/(credit) to income for the year 107 (169)
At 31 January 304 197
The following are the major deferred tax liabilities and assets recognised by the Company and the movements thereon during the year:
Deferred Tax Liabilities
Development
costs
£’000
Intellectual
property
£’000
Total
£’000
At 1 February 2014 487 41 528
Charge/(credit) to income for the year 29 3 32
At 31 January 2015 516 44 560
Charge/(credit) to income for the year 115 (44) 71
At 31 January 2016 631 – 631
Deferred Tax Assets
Property,
plant and
equipment
£’000
Share-based
payments
£’000
General
provisions
£’000
Tax
losses
£’000
Total
£’000
At 1 February 2014 (1) (12) (1) (148) (162)
Charge/(credit) to income for the year 6 (40) (2) (165) (201)
At 31 January 2015 5 (52) (3) (313) (363)
Charge/(credit) to income for the year 6 – (1) 31 36
At 31 January 2016 11 (52) (4) (282) (327)
At the reporting date, the Company has unused tax losses of £1,568,000 (2015: £1,568,000) available for offset against future 
profits. A deferred tax asset of £282,000 (2015: £313,000) has been recognised in respect of such losses where realisation  
of the related tax benefit through future taxable profits is probable. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
48
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
25. GROUP AND COMPANY SHARE CAPITAL
2016
£’000
2015
£’000
Authorised
50,000,000 ordinary shares of 1p each 500 500
Number of 
shares £’000
Allotted issued and fully paid
At 1 February 2015 22,570,088 226
Issued during the year 112,850 1
At 31 January 2016 22,682,938 227
The Company has one class of ordinary shares which carry no right to fixed income. During the year ended 31 January 2016,  
the Group granted 1,375,000 share options (2015: 545,000) under the Group’s share option plan (note 26).
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 for the Company share option plan and 3 years for the LTIP . 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 options vest.
2016 2015
Options
Weighted
average
exercise price
(£) Options
Weighted
average
exercise price
(£)
Outstanding at 1 February 1,873,285 0.38 1,401,285 0.51 
Granted during the year 1,375,000 0.01 545,000 0.04 
Forfeited during the year (225,000) 0.01 (3,000) 0.28 
Exercised during the year – 0.00 (70,000) 0.37 
Expired during the year – 0.00 – 0.00 
Outstanding at 31 January 3,023,285 0.24 1,873,285 0.38 
Exercisable at 31 January 1,328,285 0.52 1,328,285 0.52 
The options outstanding at 31 January 2016 had an exercise price between 1 pence and 161.5 pence, and a weighted average 
remaining contractual life of 6.89 years (2015: 6.40 years).
Share options outstanding at 31 January resulted in a charge of £98k (2015: £46k).
eg solutions Employee Benefit Trust Ltd holds 1,514,285 (2015: 1,514,285) ordinary shares of 1p, being 6.7% of the called up 
capital.
Expected volatility measured at the standard deviation of continuously compounded share return is based on statistical analysis  
of daily share prices over the last 12 months before grant date.
1. eg solutions Company Share Option Scheme
There were no options granted in the year ending 31 January 2016. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
26. SHARE-BASED PAYMENTS continued
2. eg solutions Long Term Incentive Scheme
Grant date 22/05/2015 22/05/2015 02/10/2015
Share price at grant date 0.755 0.755 0.675
Exercise price 0.01 0.01 0.01
Shares under option 300,000 850,000 225,000
Vesting period (years) 3 3 3
Expected volatility 35% 35% 20%
Option life (years) 10 10 10
Risk free rate 0.5% 0.5% 0.5%
Expected dividend yield 0.0% 0.0% 0.0%
Employees leaving before vesting 0.0% 0.0% 0.0%
Fair value per option 0.37 0.24 0.20
Options outstanding at 31 January 2016 200,000 725,000 225,000
Market conditions
Starting average share price 57p* 73p 68p
The starting average share price is the average of the share price in the 3 months leading up to the day before the option is granted. 
50% of options will vest on achieving 15% share price growth. The remaining 50% of options will vest on a straight line basis for 
growth between 15% – 30%. 100% of the options will vest on achieving 30% or greater share price growth.
*3 month average share prices on the dealing days in the period prior to 31 July 2014.
Warrants
Under the 13 January 2015 placing agreement, the Group agreed to enter into a Warrant Instrument pursuant to which it granted 
warrants over 112,850 Ordinary Shares to finnCap. The Warrants were exercised on 16 September 2015 with the subscription price 
for the Warrants being the Placing Price of 65 pence. The fair value of the services was valued at the time of issue using the direct 
method at £14,000.
27. RECONCILIATION OF GROUP PROFIT BEFORE TAX TO NET CASH GENERATED BY 
OPERATIONS
2016
£’000
2015
£’000
Profit before tax 9 407
Adjustments for:
Depreciation of property, plant & equipment 19 13
Amortisation of intangible assets 691 676
Impairment of intangible assets – 6
Finance income (10) (1)
Finance costs – 116
Share option charge 98 46
Operating cash flows before movements in working capital 807 1,263
(Increase)/Decrease in receivables (934) 544
Decrease in inventory – 8
Increase/(Decrease) in payables 392 (227)
Cash generated by operations 265 1,588 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
50
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
28. RECONCILIATION OF COMPANY LOSS BEFORE TAX TO NET CASH GENERATED BY 
OPERATIONS
2016
£’000
2015
£’000
Loss before tax (33) (185)
Adjustments for:
Depreciation of property, plant & equipment 19 12
Amortisation of intangible assets 691 676
Impairment of intangible assets – 6
Finance income (10) (1)
Finance costs – 116
Share option charge 98 46
Operating cash flows before movements in working capital 765 670
(Increase)/Decrease in receivables (924) 1,077
Decrease in inventory – 8
Increase/(Decrease) in payables 446 (191)
Cash generated by operations 287 1,564
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 Directors’ Report  
on page 19.
Policies for managing financial risks are governed by Board approved policies and procedures. Any proposed changes will be 
considered by the Board prior to such changes being implemented.
The key risks that the Group faces from a treasury perspective are as follows:
Liquidity Risk
Cash flow is managed on a daily, short-term and longer-term basis and management is therefore able to ensure that the Group  
has sufficient cash to meet all its commitments.
Forecast liquidity is reviewed weekly by management.
Market Risk
Market risk is comprised of Foreign Currency Risk, Interest Rate Risk and Other Price Risk.
Foreign Currency Risk
The Group is subject to a cross-border transactional currency exposure in respect of trading outside of the Group’s functional 
currency. Where possible, currency receivables and payables are matched, creating a natural hedge. All contracts are assessed  
for the need to hedge using appropriate derivative instruments.
Foreign currency sensitivity analysis
The table below shows the Group’s currency exposures in the profit and loss account arising from the monetary assets and 
monetary liabilities of the Group that are not denominated in Sterling, its functional currency. The sensitivity analysis below is  
based on a 10% appreciation/depreciation of USD against GBP , applied to the net monetary assets or liabilities denominated  
in this currency at the balance sheet date. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
29. GROUP – FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES continued
$ – denominated
2016
£’000
2015
£’000
Net monetary assets 779 323
$ currency impact
2016
£’000
2015
£’000
Profit before tax – gain/(loss)
10% depreciation 90 47
10% appreciation (68) (20)
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.
The Group has not prepared an interest rate sensitivity analysis because interest rate risk is not material to the Group.
Other Price Risk
The Group is not materially affected by other price risks due to the following reasons:
•	 No equity instruments are held other than shares held by the Employee Benefit Trust
•	 No commodities are traded
Credit Risk
Credit risk arises primarily from trade and other receivables. Detailed reporting is provided weekly on the debt position. The Group 
focuses on selling to a “blue chip” customer base, thereby minimising the risk of incurring bad debts. The Group’s position with these 
counterparties and their credit ratings are routinely monitored.  24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
52
Notes to the Group Financial Statements continued
for the year ended 31 January 2016
29. GROUP – FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES continued
Capital Risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and operate 
within current available facilities. This is reviewed by the Board on a monthly basis.
The Group manages its share capital and reserves as its Group capital.
The following table shows the carrying amounts of the Group financial instruments, which are considered to be equivalent to the fair 
value, at 31 January 2016 and 31 January 2015.
2016
Carrying
value
£’000
2015
Carrying
value
£’000
Loans and receivables:
Cash and cash equivalents 3,195 4,297
Trade and other receivables 1,098 451
Total financial assets 4,293 4,748
Financial liabilities measured at amortised cost:
Trade payables 781 595
Total financial liabilities 781 595
Net financial liabilities 3,512 4,153
Trade and other receivables:
2016
£’000
2015
£’000
Financial assets in the scope of IAS 39 1,098 451
Other assets 599 307
1,697 758
Trade and other payables:
2016
£’000
2015
£’000
Financial liabilities in the scope of IAS 39 368 372
Other liabilities 1,692 1,414
2,060 1,786
The total financial assets included in the table above represent the maximum exposure to credit risk the Group faces.
The Group has a provision of £5k (2015: £nil) against trade receivables past due summarised on page 44 as they are considered to 
be non recoverable. The remainder is considered to be fully recoverable based on our customer base being largely “blue chip” and 
the previous trading history. There is no objective evidence that these amounts will not be collected.
The Directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectable. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
30. COMPANY – FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
The following table shows the carrying amounts of the Company financial instruments, which are considered to be equivalent to the 
fair value, at 31 January 2016 and 31 January 2015.
2016
Carrying
value
£’000
2015
Carrying
value
£’000
Loans and receivables:
Cash and cash equivalents 3,186 4,261
Trade and other receivables 1,093 450
Total financial assets 4,279 4,711
Financial liabilities measured at amortised cost
Trade payables 778 590
Total financial liabilities 778 590
Net financial liabilities 3,501 4,121
The total financial assets included in the table above represent the maximum exposure to credit risk the Company faces.
The Company has this year recognised an impairment provision of £5k (2015: £nil) against the trade receivables past due 
summarised on page 44 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. Intercompany receivables 
have been fully impaired as noted in Note 17.
The Directors believe the quality of outstanding receivables which are neither past due nor impaired to be fully collectable.
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 Statement of Comprehensive Income in the period that they arise. The contributions 
to the scheme for the period amounted to £192,000 (2015: £176,000) representing 1%–10% of pensionable salaries. The amounts 
outstanding at the year end were £23,000 (2015: £15,000). These amounts are included in other creditors.
32. RELATED PARTY TRANSACTIONS
During the year there was a Director’s loan which was interest free with no specific repayment terms. The maximum amount 
outstanding due to the Company during the year was £40,000 (2015: £42,000).
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 £103,000 (2015: £90,000). Sales of consultancy services  
from EGSA to EGUK totalled £110,000 (2015: £57,000). All transactions are recorded on an intercompany account.
At 31 January 2016 EGUK had a balance receivable from EGSA of £863,000 (2015: £804,000). This inter-company balance is  
interest free and is repayable on demand. A provision for 100% (2015: 100%) impairment was made against the inter-company loan 
due to the uncertainty of recovery.
As at 31 January, EGUK had a balance receivable of £216,000 (2015: £nil) from EGUSA. The balance arose from EGUK supporting 
EGUSA with funds for the salary costs in the year. This inter-company balance is interest free and is repayable on demand. A 
provision for 100% (2015: N/A) impairment was made against the intercompany loan due to the uncertainty of recovery. 
As at 31 January, there is an outstanding loan from the Company to the EBT of £1,518,000 (2015: £1,544,000). The balance  
is interest free and has no set repayment terms.
There is no ultimate controlling party. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
54
Notice of Meeting
To the Holders of Ordinary Shares
Notice is hereby given that the annual general meeting (“AGM”) of the Company will be held at finnCap Limited, 60 New Broad 
Street, London, EC2M 1JJ on Tuesday 17 May 2016 at 10.30am for the following purposes:
As Ordinary Business
To consider and, if thought fit, pass the following resolutions which will be proposed as ordinary resolutions: 
1. Report and accounts
To receive the audited annual accounts of the Company for the year ended 31 January 2016, together with the Directors’ 
Reports and the Auditors’ Report on those annual accounts.
2. Directors’ remuneration
That the Directors’ remuneration for the year ended 31 January 2016 be approved.
3. Re-appointment of auditors
That RSM UK Audit LLP be reappointed as auditors of the Company from the conclusion of this AGM until the conclusion of the 
next general meeting at which accounts are laid before the Company.
4. Auditors’ remuneration
The Directors be authorised to determine the Auditors’ Remuneration.
Re-election of Directors
5.  That Robert Joseph Krakauer, who has been appointed since the last annual general meeting and who retires in    
accordance with the Company’s articles of association, be re-elected.
As Special Business
To consider and, if thought fit, pass the following resolutions, of which 6 will be proposed as an ordinary resolution and 7, 8, 9  
and 10 will be proposed as special resolutions.
6. Directors’ authority to allot shares
That, in substitution for any equivalent authorities and powers granted to the Directors prior to the passing of this resolution, the 
Directors of the Company be generally and unconditionally authorised (without prejudice to all subsisting authorities) pursuant to 
Sections 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 Sections 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.
7. Directors’ power to issue shares for cash
That the Directors of the Company be empowered pursuant to Sections 570 to 573 of the Companies Act 2006 to allot for cash 
equity securities (as defined for the purposes of Sections 560 to 568 and 570 to 577 of the said Act) pursuant to the authority 
conferred by resolution 6 above as if Section 561(1) did not apply to any such allotment provided that the power conferred by 
this resolution shall be limited to:
(a) the allotment of equity securities in connection with an offer of, or invitation to apply for, equity securities:
a. by way of rights to the holders of existing shares in proportion (as nearly as practicable) to their respective holdings of 
ordinary shares in the Company on a record date fixed by the Directors; and
b. to holders of any other equity securities as required by the rights of those securities or as the Directors otherwise consider  
necessary, 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; and
(b) the allotment, otherwise than pursuant to sub-paragraph (a) above, of up to an aggregate nominal amount of £11,341 being 
approximately 5% of the Company’ s issued share capital,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. 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
8. Authority to purchase shares (market purchases)
To authorise the Company generally and unconditionally, pursuant to Sections 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 2,268,294 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 pursuance of such contract as if the authority hereby conferred had not expired.
9. Authority to Propose a Capital Reduction
That, subject to the approval from the Court, the share premium account of the Company be reduced by £7.852m and the 
amount by which the share premium account is so reduced be credited to a reserve.
10. Authority to adopt revised Articles of Association
That with effect from the end of the Annual General Meeting the Articles of Association produced to the meeting and, for the 
purposes of identification, signed by the Chairman, be adopted as the Articles of Association of the Company in substitution for 
and to the exclusion of the Company’s existing Articles of Association.
Explanatory Notes to the Resolutions:
Resolution 1 – Receiving the account and reports
All companies are required by law to lay their annual accounts before a general meeting of the Company, together with the Directors’ 
reports and auditors’ report on the accounts. At the AGM, the Directors will present these documents to the shareholders for the 
financial year ended 31 January 2016.
Resolution 2 – Directors’ remuneration
This resolution refers to the Directors’ Remuneration set out on pages 38 and 39.
Resolution 3 – Re-appointment of auditors
This resolution concerns the re-appointment of RSM UK Audit LLP as auditors until the conclusion of the next general meeting at 
which accounts are laid, that is, the next annual general meeting.
Resolution 4 – Auditors’ remuneration
This resolution authorises the Directors to fix the Auditors’ Remuneration.
Resolution 5 – Re-election of Director
This resolution concerns the re-election of Robert Joseph Krakauer, who is retiring at the AGM by rotation in accordance with 
Company’s articles of association.
Mr Krakauer is a Non-Executive Director and his biography is set out on page 17 of the report and accounts for the year ended  
31 January 2016.
Resolution 6 – Directors’ power to allot shares
This resolution grants the Directors authority to exercise all powers of the Company to allot authorised but unissued shares in the 
capital of the Company and other relevant securities. Unless revoked, varied or extended, this authority will expire at the conclusion 
of the next annual general meeting of the Company or the date falling 15 months from the passing of the resolution, whichever is the 
earlier.
Resolution 7 – Directors’ power to issue shares for cash
This resolution authorises the Directors in certain circumstances to allot equity securities for cash other than in accordance with the 
statutory pre-emption rights (which require a company to offer all allotments for cash first to existing shareholders in proportion to 
their holdings). The relevant circumstances are either where the allotment takes place in connection with a rights issue or other pre-
emptive offer or the allotment is limited to a maximum nominal amount of £11,341, representing approximately 5% of the nominal 
value of the issued ordinary share capital of the Company as at 31 January 2016 being the latest practicable date before publication 
of this notice. Unless revoked, varied or extended, this authority will expire at the conclusion of the next annual general meeting of 
the Company or 15 months after the passing of the resolution, whichever is the earlier. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
56
Notice of Meeting continued
Resolution 8 – Authority to purchase shares (market purchases)
This resolution authorises the Board to make market purchases of up to 2,268,294 ordinary shares (representing approximately 10% 
of the Company’s issued ordinary shares as at at 31 January 2016 being the latest practicable date before publication of this notice). 
Shares so purchased may be cancelled or held in treasury. The authority will expire at the end of the next annual general meeting of 
the Company or 15 months from the passing of the resolution, whichever is the earlier. The Directors intend to seek renewal of this 
authority at subsequent annual general meetings. 
The minimum price that can be paid for an ordinary share is 1p being the nominal value of an ordinary share. The maximum price 
that can be paid is 5% over the average of the middle market prices for an ordinary share, derived from the Daily Official List of the 
London Stock Exchange, for the five business days immediately before the day on which the share is contracted to be purchased.
Resolution 9 – Approval of a reduction in capital
As at 31 January 2016, the Company had a deficit on its profit and loss account of £1.634m. This means that the Company is 
currently unable to pay dividends or make any other form of distribution until the deficit has been eliminated. In order to remedy 
this and to enable the Company to pay dividends in the future, should the Board determine that it is appropriate to do so, it is now 
proposed to eliminate the deficit and create reserves of approximately £6.218m by reducing the Company’s share premium account 
(“Reduction of Capital”) by £7.852m.
The Reduction of Capital is subject to:
(a) approval by shareholders at the Annual General Meeting by special resolution; 
(b) confirmation by an order of the Court; and 
(c) the Court order being delivered to and registered by the Registrar of Companies.
The resolution to approve the Reduction of Capital is required to be proposed as a special resolution. Prior to confirming the 
proposed Reduction of Capital, the Court will need to be satisfied that the proposal does not adversely affect the position of the 
creditors of the Company. The Company will, if necessary, put into place such arrangements as the Court may require to satisfy it 
in that regard. That may include an undertaking not to make any distributions from the reserve created on the Reduction of Capital 
until all of the creditors of the Company as at the date of the Reduction of Capital taking effect have either been discharged or 
have consented to the Reduction of Capital. The Board intends that an application for confirmation of the Reduction of Capital 
will be made to the Court promptly after the Annual General Meeting provided the Capital Reduction Resolution has been passed. 
Confirmation of the Reduction of Capital is within the discretion of the Court but will generally be granted provided that the Court 
is satisfied that the interests of the Company’s creditors will not be prejudiced. The process takes approximately six to eight weeks 
from the date the application is made.
Resolution 10 – Adoption of new Articles of Association
It is proposed to adopt new Articles of Association (the “New Articles”) as the current articles were adopted on 6 June 2007 and 
have not been updated since the Companies Act 2006 came into force. The principal changes introduced in the New Articles are 
summarised below. Changes of a minor, technical or clarifying nature have not been noted. A copy of the New Articles and a copy 
of the Company’s current Articles of Association (the “Current Articles”) showing changes being proposed by this resolution are 
available for inspection at the registered office of the Company at Barn 1, Dunston Business Village, Stafford Road, Dunston, Stafford 
ST18 9AB from the date of this Notice until the close of the Annual General Meeting. They will be available for inspection during usual 
business hours on any weekday (Saturdays and public holidays excluded). 24661   8 April 2016 5:11 PM    Proof PFP
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Strategic Report Governance Financial Statements Shareholder Information
Changes to fully align with the Companies Act 2006
The New Articles include new and updated provisions to reflect the Companies Act 2006, including:
•	 the ability of the Directors to conduct meetings of the directors of the Company by conference telephone or by other electronic 
means where such Directors are able to hear and speak to each other throughout (Article 112); 
•	 the authorisation of Directors’ conflicts (Articles 118 to 120 inclusive); and
•	 the ability of the Company to serve notices on shareholders by making them available on a website and notifying the shareholder 
of its availability (Article 138).
By order of the Board
Secretary
eg solutions plc
Barn 1
Dunston Business Village
Stafford Road
Dunston
Stafford
ST18 9AB
16 April 2016
Notes:
1. Pursuant to Part 13 of the Companies Act 2006 and to Regulation 41 of the Uncertificated Securities Regulations 2001 (as 
amended), only those members registered in the register of members of the Company at 6.00pm on 15 May 2016 (or if the AGM 
is adjourned, 48 hours before the time fixed for the adjourned AGM) shall be entitled to attend and vote at the AGM in respect of 
the number of shares registered in their name at that time. In each case, changes to the register of members after such time shall 
be disregarded in determining the rights of any person to attend or vote at the AGM. 
2. A member who is entitled to attend, speak and vote at the AGM may appoint a proxy to attend, speak and vote instead of him. 
A member may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares (so 
a member must have more than one share to be able to appoint more than one proxy). A proxy need not be a member of the 
Company but must attend the AGM in order to represent you. A proxy must vote in accordance with any instructions given by  
the member by whom the proxy is appointed. Appointing a proxy will not prevent a member from attending in person and voting 
at the AGM (although voting in person at the AGM will terminate the proxy appointment). A proxy form is enclosed. The notes 
to the proxy form include instructions on how to appoint the Chairman of the AGM or another person as a proxy. You can only 
appoint a proxy using the procedures set out in these Notes and in the notes to the proxy form.
3. To be valid, a proxy form, and the original or duly certified copy of the power of attorney or other authority (if any) under which it 
is signed or authenticated, should reach the Company’s registrar, Capita Asset Services of The Registry, 34 Beckenham Road, 
Beckenham, Kent, BR3 4TU, by no later than 10.30am on 15 May 2016.
4. In the case of joint holders of shares, the vote of the first named in the register of members who tenders a vote, whether in person 
or by proxy, shall be accepted to the exclusion of the votes of other joint holders.
5. A member that is a company or other organisation not having a physical presence cannot attend in person but can appoint 
someone to represent it. This can be done in one of two ways: either by the appointment of a proxy (described in Notes 2 to 4 
above) or of a corporate representative. Members considering the appointment of a corporate representative should check their 
own legal position, the Company’s articles of association and the relevant provision of the Companies Act 2006. 
6. Copies of the Executive Directors’ service contracts with the Company and any of its subsidiary undertakings and letters of 
appointment of the Non-Executive Directors are available for inspection at the registered office of the Company during the usual 
business hours on any weekday (Saturdays, Sundays or public holidays excluded) from the date of this notice to the date of the 
AGM and from 15 minutes prior to and until the conclusion of the AGM.
7. Copies of the New Articles and Current Articles are available for inspection at the registered office of the Company at Barn 1, 
Dunston Business Village, Stafford Road, Dunston, Stafford ST18 9AB during usual business hours on any weekday (Saturdays, 
Sundays and public holidays excluded) from the date of this Notice until the close of the meeting. If the New Articles are approved 
they will be available on the Company website after the close of the meeting. 24661    8 April 2016 5:11 PM    Proof PFP
eg solutions plc annual report and accounts for the year ended 31 January 2016
58
Company Information
Advisers
Board of Directors
Duncan McIntyre 
Chairman
Elizabeth Gooch 
Chief Executive Officer
Jonathan Kay 
Chief Financial Officer
John Brougham 
Non-Executive Director
Mark Brady 
Non-Executive Director
Robert Krakauer 
Non-Executive Director
Registered Office
Barn 1 
Dunston Business Village  
Stafford Road 
Dunston 
Stafford 
Staffordshire 
ST18 9AB 
Company registration no. 02211062
Website
www.egoptimize.com 
www.egsplc.com
Solicitors
TLT Solicitors 
20 Gresham Street 
London 
EC2V 7JE
Osborne Clarke 
One London Wall
London
EC2Y 5EB
Secretary
TLT Secretaries Limited 
1 Redcliffe Street 
Bristol 
BS1 6TP
Auditors
RSM UK Audit LLP
(formerly Baker Tilly UK Audit LLP)
Statutory Auditor 
Chartered Accountants
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5BB
Nominated Adviser  
and Broker
finnCap Ltd 
60 New Broad Street  
London 
EC2M 1JJ 24661   8 April 2016 4:21 PM    Proof One
www.egsplc.com 24661    8 April 2016 4:21 PM    Proof One
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@egoptimize.com 
82 Maude Street, 
Sandton, 
Johannesburg 2146, 
South Africa
t: +27 (0) 10 003 0226 
f: +27 (0) 11 783 4383 
44 Wall Street, 
12th Floor, 
New York, NY 10005, 
USA
t: +1 (212) 461 7100
www.egoptimize.com
www.egsplc.com
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