Eg Solutions Share Discussion Threads

[simon gordon] 05/1/2014 11:49

Mach,

Thank you for apologising.

Good fortune.

[mach100] 05/1/2014 11:30

Apologies Simon, I was just checking whether you are on the money or not. No offence intended honestly. It is always good to learn from here as long as you find the right research. Thanks for the input Simon. I will be back here as it looks an interesting company, very hard to decipher though.

[aishah] 04/1/2014 23:03

#312 - very sad really knocking a poster like that. Quite of few of us followed John O'Connell and his success with Staffware and feel justifiably concerned at his departure so soon from EGS. You dyor and get on with your investment objectives.

[mach100] 04/1/2014 13:56

Thanks Eric, I will put them back on then. Is Simon the resident deramper an anchor of reality in a sea of delusion or just deadwood? How is the company's cash burn? Does he have a point?

[eric76] 04/1/2014 13:20

Been a sage choice the last few months mach100 but its not all bad here imo.
From the founders tweets I'm surmising the new ceo left because he wanted too much money (or share options) which isn't a bad result for investors however "hot" he was supposed to be and theres been no news of his team following him out the door all of whom he reported as having done their own due diligence and found the co. to be even better than they thought on joining. (source.. defuncts ceo's last interview)
Their US partner Aspect software is winning awards for demonstrating excellence in capturing the highest market share within its industry so perhaps they'll come up with a few worldwide sales that'll help lift the share price at some point too..



Elizabeth Gooch MBE @ElizabethGooch 9 Dec
The Founders Dilemma! Recognising you need help is one thing. Finding helpers who do not want to steal the Crown Jewels is much harder!

[mach100] 04/1/2014 12:36

I was interested in these after seeing the price dip to 72p. Very good postings on this thread I must say. Really informative and I shall be giving these a wide berth needless to say.

[simon gordon] 07/12/2013 17:13

Eric,

Good luck, they've not got much cash and their new management strategy has just imploded.

Key chart support is the bottom of the monthly cloud at 56p.

[simon gordon] 06/12/2013 14:59

Shares Mag:

Clash crunches EG Solutions

Stafford-based back-office optimisation software supply minnow EG Solutions (EGS:AIM) has been thrown a googly as chairman and chief executive John O'Connell walked out. This comes as a huge shock as he'd been in the job less than three months, having initially joined as a non-executive director in March. Perhaps unsurprisingly the confidence of investors has been shaken, swiping more than 15% off the share price to 76.5p.

Our sources tell us that friction had been building between O'Connell, foundering acting executive chairman Elizabeth Gooch and some of the company's institutional backers for a couple of weeks. I'm shocked since I shared a table with O'Connell just a few weeks ago at the UK Tech awards, and he spoke excitedly about the opportunity for EG during our chat.

But sometimes cultures clash and it's best to draw a speedy line under events and move on, perhaps even more so at a microcap business like EG. Gooch will step into the breach short-term to provide a stabilising force, a sensible move, but investors can expect a new CEO appointment in due course.

[simon gordon] 06/12/2013 14:05

hxxp://www.cbronline.com/news/tech/services/outsourcing/eg-solutions-ceo-dramatically-resigns-4142183

EG Solutions CEO dramatically resigns

by Jason Stamper| 06 December 2013

More trouble at British software firm?

The CEO of AIM-listed EG Solutions, John O'Connell, has resigned with immediate effect, just eight weeks into the job.

EG said in a statement it will appoint a new CEO "as soon as possible", and in the meantime founder and former CEO Elizabeth Gooch will be acting executive chairman.

In an interview with CBR just two weeks ago, there were no signs from O'Connell that events were about to unravel.

Asked why he had become CEO, he said: "I had been encouraged by the fact that Elizabeth [Gooch] had signed this contract in January [for Aspect to become an investor, strategic partner and exclusive distributor in certain geographies].

"Therefore I was more convinced that the goal for global domination was more realistic, especially as she said that she wanted me to help get some ex-top-guns from my Staffware and other days. The business was nicely balanced between Aspect on the one hand, and our own efforts primarily in EMEA. We were no longer like a one-clubbed golfer."

O'Connell is a technology entrepreneur who co-founded, floated and then sold software company Staffware to Tibco in 2004. He made an investment in EG Solutions - a back-office automation company specialising in the financial services sector - in March of this year and became non-executive chairman.

In October he took the reins as CEO, his first executive role since he sold Staffware, although he had been active mentoring, chairing and investing in other British software firms.

During his time at EG Solutions O'Connell had hired several senior sales and operations roles that he knew from his Staffware days or since.

EG has been struggling recently with disappointing results and losses. In the first half to 31st July, sales were down to £2.2m from £2.8m a year ago. EBITDA went from profit of £0.6m to a loss of £0.3m.

An EG Solutions spokesman told CBR the company will not be making any further comment on the reasons for the sudden resignation at this time.

[simon gordon] 06/12/2013 11:52

It was a shocker to see John O'Connell had left this morning.

He must have fallen out with the founder, his team will probably follow him.

I think the main hope must now be that Aspect come in and buy them.

Other than that, I don't see much hope for share price appreciation.

I had read negative comments about the founder before but to get O'Connell to take the job and for him to totally leave the company after a few months is pathetic.

[aishah] 06/12/2013 09:30

Cleared out too - got a good exit price early doors.

[fastbuck] 06/12/2013 08:42

John has left but left behind the building blocks for a successful business with the Aspect deal and the recruitment of some key management from John's earlier days. A little bit of uncertainty yes but not a large negative. Presumably he has plenty of other interests to focus on.Hopefully we will see more deal flow over the next few months. Regard the share as a hold now.

[simon gordon] 06/12/2013 08:36

I've sold my position, must have been a big fall out. He was the main reason I bought in.

Thankfully, the contract news has cushioned the price and there is a buyer around.

[aishah] 06/12/2013 08:09

eg solutions plc ("the Company"; LSE-AIM: EGS), announces that John O'Connell has informed the Board of his decision to resign as a Director of the Company with immediate effect.

[simon gordon] 03/12/2013 13:18

AISHAH - thanks.

[aishah] 03/12/2013 13:08

Techinvest reviewed their 2013 Tips and EGS hadn't moved all year. That got me thinking so I reviewed EGS over the weekend and decided to invest. They commented on the substantial pipeline of opportunities via the Aspect relationship and view EGS as Hold/Add. 2015 p/e is around 10.

[simon gordon] 03/12/2013 08:24

Was EGS tipped in December's TechInvest, if so, what did they say?

[aishah] 02/12/2013 14:47

From the last contract win:
"Since launch to their sales team in May 2013 Aspect have built a substantial pipeline of opportunities for the eg operational intelligence(R) software across North America, EMEA and Asia Pacific. The indications are that this will be a strong and lucrative partnership for both eg and Aspect."

[tech] 02/12/2013 14:21

Added also, could be a New Year tip in the next Techinvest.

[aishah] 02/12/2013 14:11

Added today. John O'Connell made me loads during the Staffware era. Here's hoping he can do it again.

[eric76] 02/12/2013 13:48

They sound an exciting-and unknown- co. simon imo. Their founder has just won an award in west midlands woman of the year comp so their good press continues.
Will be watching for fingers "close above 87.5p" eod for signs of the next move up.

[simon gordon] 29/11/2013 10:39

Eric,

Cheers!

I like this section:

Is it the right category to be in though - presumably Gartner doesn't do a Magic Quadrant for back office optimisation?

You don't want the market to be too big, because it would out-pace us. I think realistically the company can grow at a very high rate. We're already talking to three of the world's largest banks, one of whom has 70,000 people in one region alone, offshore. In fact, to some extent, this technology can reduce the huge flow of jobs coming out of the UK, because technology can solve it. It can help companies to win back market share. If you can get productivity gains of 20- to 30% you can do far more with the same people.

EG has been predominantly in the financial services market - 90-95%. Is that where you intend to put most of your focus?

There was a breakthrough earlier this year announced with Npower. It's just signed off a 30% productivity gain as a result of this project. We're talking to others too. Another interesting client we've worked with has used technology we have rights to, to steal time from the front office to help with the back office. This is the concept of the 'blended office'. One outsourcer, BHG, has just implemented a system for 1,000 users that 'steals time' -- my words - from the front office, using EG.

[eric76] 29/11/2013 10:30

Q&A: Why one of UK's top entrepreneurs believes in EG

App Dev and SOA
by Jason Stamper| 26 November 2013
John O'Connell co-founded, grew, publicly floated and eventually sold British software firm Staffware back in 2004...


John O'Connell, EG Solutions.

Having been an investor, chair and mentor to a raft of software firms since Staffware was sold to Tibco, he's now taken the reins as CEO of another British firm, EG Solutions, which offers back-office optimisation primarily to financial services firms.I caught up with him to find out why it is EG Solutions that he has chosen to lead.....