eg solutions, the bombed-out operational intelligence software venture with a recent history of disappointments, is showing signs of recovery and seems to be doing well on the new business front.

Floated at 85p in 2005 and in the doghouse after disappointing throughout a terrible 2007, the financial services sector-focused tech play is making bullish noises about expansion into international markets. Another recent new contract win in South Africa with a ‘major life office’ – said to employ 5,000 people or more – represented the fourth piece of new business secured since the beginning of the new financial year. Chief executive Elizabeth Gooch says South Africa is ‘proving to be a worthwhile focus for our ongoing expansion across international markets’, which also include India and the Netherlands.

While encouraging, March saw eg issue gloomy financials for the year to January, showing a substantial tail-off in sales to £4.1m (£5.4m) and dramatic pre-tax losses of £815,000, after UK restructuring costs and investment in setting up operations overseas. Cash balances had dwindled from £2.43m to £880,000. On the plus side, restructuring measures have cut annualised costs by £900,000 and sales from the overseas business were way better than expected in the group’s first year of international trading.

Originally something of a star on AIM, eg received a savaging during recent trials and tribulations but management is convinced the business can be restored to previous levels of profitability. While the shares boast a degree of recovery potential, there are far more robust investments about. All but the most adventurous should steer clear.

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EG Solutions	AIM	£4.07m	28.50p	0.00p
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