Fast growing business-improvement venture EG Solutions, continues to please, announcing a sterling set of interim results to July and a maiden interim dividend.

Founded and led by Elizabeth Gooch, EG solutions reported profits before tax of £670,000, almost a six-fold increase, on turnover up 36.5% to £3.43m. Earnings per share tipped up to 3.7p from 0.7p last year and management has cheered shareholders with a maiden interim dividend of 0.6p per share.

Currently valued at £21.23m, Gooch states that her aim is to turn EG into a £100m company within four years, and is looking to achieve this growth organically. New recruit Ian Wright is charged with the role of chief operating officer, leaving Gooch to focus on expansion in Scandinavia and other key territories.

During the half-year, major contracts were secured with Co-op bank and two UK mortgage-lending subsidiaries of a US investment bank. The group is in a strong cash position having generated £1.34m during the period, leaving almost £3.4m at bank and in hand at the end.

House broker Brewin Dolphin foresees a 180p share price within 12 months, forecasting £7.5m and £9m of sales for the next two years, with £1.7m and £2m profit before tax respectively. Forecast earnings of 9.4p and 10.8p put the shares on respectable forward multiples of 15.8 and 13.75 times, with the dividend expected to increase to 2p, then 2.4p (yields of 1.3% and 1.6% for 2007 and 2008).

Backed on these pages at 110p in 2005, the shares currently trade at 148.5p each. It is worth adding to your holding at this price.

EG Solutions	AIM	£1.86m	13.00p	0.00p
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