Shares digital

EG Solutions (EGS:AIM) – Finals PTP: -£0.82m (-£0.04m) Divi: n/a (n/a)

The shares of the operations management software expert jumped 15% to 11.5p as a cost-cutting programme, a trio of major contract wins and new product launches offered hope that the worst may be over after a torrid 2007.

A trio of profit warnings over the past 15 months and the departure of two finance directors has hammered the shares, which have plunged from a 2006 high of 168p. The firm’s heavy dependence upon the credit crunched financial services industry for its customers also remains a question mark.

Nevertheless, founder and chief executive officer Elizabeth Gooch, clearly believes a turnaround is on the way, as she last week snapped up 200,000 shares at 10p, to take her holding to 62.8%.

Shares says: EG is very cheap if it returns to profit but the stock remains risky.

by: Russ Mould