Eg Solutions Share Discussion Threads

[smithie6] 21/8/2014 10:06

beethoven

disagree with your post

1) the chairman price is 45p not 50p
there is 10% interest included in the conversion to shares

2) the chairman has imo had heavy insider information
not provided to the market

The RNSs to the market have been blah blah until yesterdays with some actual numbers.
While the chairman would have access to numbers.

3) appears questionable whether the chairman actually paid up the money back in Jan or Feb. .......or for some other shares...
or is now just getting round to it....

AFTER seeing X months of +ve RNS s
and hence taking no risk.....buying when the share price is 70 % higher

4) The RNSs from the co. are....a DISGRACE.

and make me think of the disgraceful conduct of Simon B. over at MOS.

The co. has reported large turnover increase number ONLY AFTER the end of the H1
period.
Most of the other RNSs say that things are going nicely. Almost every company is producing RNSs that say that.....and no one knows what it means in real numbers...and often profit warnings are issued AFTER such " going well" RNSs.

The MD allowed the chairman to subscribe for shares at a discounted price
ie. using EGS assets, shareholder asset....not her assets

using insider information imo to
SAVE HER FACE !!

after her loss of face from John OConnell departure...and other dirs. leaving as well.

...Mrs/Ms Gooch wanted to save face...
by repeatedly going on about the chairman investing (AGM statment. H1 results. RNSs).....it allows her to try to create an image of new news and try to turn the page after OConnell leaving...and try to hide the OConnoll news

but done by giving away company assets not her own assets...

4B) Note that companies report contract wins but do not report contract losses.
Contracts can be won and the total turnover can stay the same.
An excellent example is Creston.

If you believed their contract win news you would expect the share price to be up around the moon. But turnover is flat since they lose roughly the same amount of value of contracts.
EGS have taken on new clients I assume over the last X years....but the turnover has stayed flat in ALL annual reports so far.

Companies need to report numbers to the market. Like in the USA. Expected Turnover range and expected profit range. But in the UK companies get away with blah blah blah which is useless....while institutes get to go to private meetings and get the real info.

4C) Lets also recall....that another dir. was at EGS for a short time....cost in accounts...200k.

Gooch seems to believe in a policy of
"some shareholder money for me. some shareholder money for you. none for shareholders"
"some shareholder money for me, again. some shareholder money for you as well. and again none for shareholders"

4D) I note that listed at 85p in 2005 I think.
and turnover has stayed at 4M for all of that time....

while Gooch has kept filling her pockets !!


5) The same imo for getting Herald to buy a wadge of shares.
....trying to save face or boost her image imo

6) Surely Gooch should have sold those shares that sold to Herald to OConnell
and with say a 1M pnd stake surely he would have been willing to stay then ?
and if OConnell reqd. it as head of renumer. com. ...massive reduction in Gooch salary.....
(although not so young now....Im not a fan of MDs over 60 or 65....afternoon sleep age !)

7) imo Gooch is not the person to try to internationalise EGS.....
and I think that most people would agree with me...
(I note she is listed as acting MD only)

[smithie6] 21/8/2014 09:51

Goochs high pay

The explanation of why.

(while noting that her high pay (perhaps 200k too high) is not a deciding factor in valuing the shares...since only a fraction of the costs of running the co. ...but a bigger fraction of its profit)

Been having a look at this co. due to big share price rise yesterday....

Gooch gets around 400k...massive for a tiny company....turnover for last few years has been just 4M...and turnover over past years has been flat...

so 400k is ...nuts.

The reason is....imo....historical...

Before listing ...Mrs/Ms Gooch owned even higher % of EGS...and most of the co. profit was paid to her via salary...
one assumes that from salary one can then do various things to avoid or minimise tax due....such as
- investing in EIS schemes
- putting money into pension pot
- etc


In the admission doc. it said that her pay would be modified after listing to be similar to that in similar cos.

Clearly imo....that NEVER happened....
and due to her large shareholding she forced that her pay was never reduced "as per" the admission document.

Compare for example with say NBI (Northbridge).
The MD gets around 200k.....while the co. produces around 7-9M of cash per year
...ie. NBI produces more cash than EGS has turnover !!

so Mrs/Ms Gooch pay is....nuts....
and her historic performance is also bad.....poor turnover growth over many years...

and she has no track record of success of managing large international software companies or similar which justifies more than double or triple the going rate for a small listed IT co.

and needs to be reduced....(halved imo)

(and imo it could well be the reason that John OConnell left....
he was head of the renumeration committee....
and if he would not agree to her mega pay...then clearly a clash was likely...
and she as the big shareholder and voter was the one of the 2 that got to stay

fulltimeinvestors.com

[beethoven3] 21/8/2014 09:18

Let's be factual:

1. eg is emerging from a problem period, making it a high risk investment albeit that the risk is now much lower.
2. For some time, the company has been positive about its trading prospects - yesterday's trading update provide evidence to allow its broker to raise its forecasts.
3. The last dealings by directors of the company were at 52p. Prior to that (inc April) the Chairman subscribed new shares (ie injecting new capital into the business) at 50p
4. Changes at the board have been more than you would expect from a small company and have been disruptive to the business. What matters now is that the top and bottom line are now growing.
5. There may have been issues around Ms Gooch but you have to give her credit for her role in getting the company back on a growth track.

My own conclusion from this is that anyone who took a risk by buying eg shares is now being properly rewarded. The information to support their has been in the public domain and the implication of insider trader is nonsense.

[bones698] 21/8/2014 02:36

Anyone seen cyberpost recently ? Tia

[smithie6] 20/8/2014 21:12

...having a look at past co. reports...

this E.Gooch lady must be a bit of character.....gets. through directors like there is no tomorrow !

and various other negative factors about some of her past conduct....
but I guess that is perhaps completely normal for someone owning a valueable stake in a small co.......very difficult to get to that position if one is Mr/Mrs average...(which infers not too much drive !)
...(Steve Jobs for example was apparently quite a perfectionist...and I assume difficult to work with as a result.....but clearly he produced amazing results
...and perhaps similar things could be said of Bill Gates...)

perhaps any not so attractive examples of actions ( I could list some...like borrowing money interest free from the co. or selling her some of her shares to the staff trust fund...which she sits on the board of !!, thats a bit whacko imo....impression that in the past she has used the co. on occasion for her own needs)
hopefully that has ended now ?...partly since Herald are now an investor and unlikely to agree with such things....and the Gooch stake is now not quite so powerful as it was say 3 years ago..due to dilution and share sales.

[smithie6] 20/8/2014 18:50

Earlier in 2014......



"Sir
Can I offer you some insider trading ?"

"Thats trading with information that the market does not have ?

"Indeed sir"


"Yes please !.
full portion please"

"Ah, and would sir like a 10% discount as well ?
with the option for a second helping later as well ?"

"Indeed !. This all sounds rather too good to be true !"

"Yes. We cant offer this to the riff raff sir. Only favoured clients"

"Whats the price then ?"
"Sir, its 50p minus 10%, so 45p. With the option for second helping as well.
Shall I fill up your plate sir ?"

"Ummm. You are not taping this are you ? Sure that no one listening ?"
"Not to worry sir. We are the EGS part of the AIM Restaurant. No problems or inspectors here sir I can assure you"

"And the menu price is likely to go up when the news is made public ?"
"Yes sir, a lot"


"Well then, I cant say no. Please go ahead !!. As much as you have got please."

" oh yum. that looks great.
Ah, and the second helping. Will that be at the same price ?"

"Sir. the second helping is completely free sir, Complements of the house.
But please dont let anyone else know sir otherwise we could have problems.
Its just for our selected special clients...and we charge the cost to the ...well, riff raff clients"

"completely free !
Wow. Glad I came here.


"The other clients wont mind if they find out that some special clients are getting free second helpings.....especially since they are paying for it ?"

" Yes they are paying for these special deals...so we have to make sure they dont find out otherwise there might be problems. So please keep it to yourself sir"

"OK, sure, will do"

"One last thing"
"Yes sir".

"If I am not around for a second helping...can I send someone in my place ?"
" The easiest thing sir is if you let us know and we will sell the second helping to the riff raff...and we will send you the money"

"Uh. Let me get this straight. The others pay for free second helping for me...and I can sell it to them ..even though they have paid for me to get it for free and I can actually get the money !!

" Yes thats right sir."
"Wow. Great deal for me"


----


(not so good for the riff raff clients....!!)

---
The riff raff clients in this little story are.....yes indeed.....the normal EGS shareholders

while the "sir" is of course...the Chairman.....

---
Fulltimeinvestors.com

[playful] 20/8/2014 08:27

Good start to the day now off for a run on the beach...

[marcus wanky] 06/6/2014 08:07

FINMAC - come back ,all is forgiven!!!!!!!!!!!!!!!!!!!!!!LOLOLOLOLOLOLOLOLOL

[oregano] 03/6/2014 12:30

Good news, EBITDA forecast for this year upgraded from £0.5m to £0.9m by Fincap.

Today's trading update reinforces the positive news delivered at the AGM
last month. Demand for the company's leading-edge workforce
optimisation software continues to be strong through H1, leading to
contracts being secured from both new and existing customers. H1
revenues to July are now expected to exceed those of the last two years
(£2.8m & £2.2m) leading to results for the FY to January 2015 being ahead
of expectations. On the back of today's news we are lifting this year's
revenue forecast from £5.2m to £6.0m and we now expect the company to
break even on this level of sales. In the following year to January 2016 we
expect c.20% growth, which should lead to £0.4m adj. PBT; or 2.0p adj. EPS
(on a normalised tax rate), up from our previous expectation of 1.6p. With
strong remedial action taken by the returning founder, supported by a
strengthened board, the company has clearly recovered rapidly from its
difficult H2 last year and on the back of this, we raise our TP to 80p.

[playful] 03/6/2014 11:19

I agree, they seem very shareholder focused which is something that I find very attractive, expect a late reported trade :0)

[oregano] 03/6/2014 10:06

i do like their rhetoric. continued chat about enhanced shareholder value.

"New management team focused on delivering profitable growth and enhanced shareholder value"

"Duncan McIntyre, as Non-Executive Chairman, eg solutions, stated: "eg solutions is now poised to take advantage of the projected growth in the Back Office Optimisation market sector. The drive within many enterprises to focus on improving customer service has ideally positioned the company in the back office optimisation market. Our solutions relentlessly focus on delivering increased operational efficiencies, cost control and enhanced risk management, while improving the overall customer experience. This lies at the heart of back office workforce optimisation, a market we are driving forward from a leadership position."

[playful] 03/6/2014 09:47

Seem to be getting their ducks in a row...

hxxp://www.eguk.co.uk/news/senior-appointments-strengthen-eg-solutions-management-team/

[oregano] 03/6/2014 08:22

that is punchy, upgrading full year forecasts after four months of the year. clearly some further big contract wins to come.

[oregano] 13/5/2014 10:15

interesting they have appointed new financial PR. clearly going to talk up the story.

"I was impressed by Redleaf's credentials and understanding of our growth strategy and am pleased to be able to welcome them on board. We are an ambitious company and look forward to working with Redleaf and our newly appointed Chief Marketing Officer, Tim Taylor, to ensure our story is communicated effectively to the market." -

[oregano] 13/5/2014 08:47

I cannot recall ever seeing such a confident statement from EGS.

"eg's financial performance since the year end has been encouraging and demonstrates that we are positioned for profitable growth and the delivery of enhanced shareholder value.

We are also pleased today to announce that we have secured a contract to provide further licences to an existing customer worth approximately £0.4 million, to be recognised in the current financial year.

Our near term pipeline remains strong and we look forward to announcing further customer gains in due course.

we have the start of a multibag.

[rbcrbc] 29/4/2014 15:05

SCAM ALERT:

I got a call this morning from someone claiming to be in Chicago saying they have a client who wants to take over this company at between £5.00 and £18.00 per share. They want me to sign a non-disclosure agreement. So obviously a scam.

I just wanted to alert any non-savvy holders not to get taken in.

[oregano] 24/3/2014 12:35

the last guy was quality too......!

Anyone going to this function tomorrow night? not alot of interest here.

[simon gordon] 23/3/2014 15:13

The new Chairman looks quality:

19 March 2014

IMMEDIATE RELEASE
Wednesday,19 March 2014
eg solutions plc

Appointment of Chairman, second new utility customer win, change of adviser

eg solutions plc ("eg" or "the Company"; LSE-AIM: EGS), the back office optimisation software company, is delighted to announce that Duncan McIntyre has agreed to join the Board as Non-Executive Chairman with immediate effect. Separately, the Company are pleased to announce a further contract win in the utilities sector, highlighting the applications of the eg operational intelligence suite across verticals.

The Company are also pleased to announce the appointment of finnCap Ltd as its Nominated Advisor and broker with immediate effect.

Appointment of Duncan McIntyre

Mr McIntyre's successful international business career includes 20 years as Chairman, Chief Executive and investor with a number of quoted and private companies, mainly in the technology sector. Most notably Mr McIntyre acted as chief executive of Morse plc until 2007 (which he joined in 1994 after qualifying as a chartered accountant) and as chairman of Monitise plc until October 2013, which he helped build to a market capitalisation of approximately GBP1 billion.

Elizabeth Gooch, currently Acting Executive Chairman, will continue as Acting Chief Executive Officer.

Further disclosures in respect of Mr McIntyre, as required pursuant to Rule 17 and Schedule 2 (g) of the AIM Rules for Companies, are set out below.

Elizabeth Gooch commented:

"I am delighted that Duncan has agreed to become eg's Chairman. His success in building international businesses is based on his deep understanding of modern technology markets, strong City reputation and real passion for developing effective management teams. He will add real value to our business."

Duncan McIntyre, commented:

"eg has a very strong position in the developing back office optimisation market. We have the market leading product, a superb and loyal customer base and a committed team of people. The business has significant potential but has yet to deliver on this opportunity. The past year has been extremely disappointing and we will be working hard to establish an appropriate board structure, build a rounded management team and re-establish a culture of support and success. I am pleased to be working with Elizabeth and the team with renewed focus on delivering to our customers, shareholders, partners and staff."

=====

With a new broker appointed it looks like they are on the hunt for fresh capital, probably need a couple of million.

[eric76] 26/2/2014 15:44

Sold my last few here after their no's.
From what i could get they made a loss last year and are planning this year to borrow a load of cash then convert it into equity at the end of the year to pay for next years losses.
Didn't seem much point hoping for a recovery.

[pugugly] 26/2/2014 15:02

Mr Market speaking - "I do not like uncertainty especially in a loss making company."

Share holders continuing to vote their brains (rather than their hearts) and salvaging what they can.

I was interested in the coy a few yeas ago but could never see real scaleable growth options - I think history has confirmed my worries.

Not sure how much (if any) value could be left

Thoughts etc.

[johnv] 03/2/2014 14:55

Aishah,

what does he say about BRY

[aishah] 03/2/2014 12:34

Best sold for now says Techinvest

[beethoven3] 27/1/2014 09:02

Depends on reasons for departure and what happens next

[tech] 27/1/2014 08:42

Things not looking good

[simon gordon] 27/1/2014 08:32

27/1/14:

eg solutions plc ("the Company"; LSE-AIM: EGS), announces that Robert Owen Glenn has informed the Board of his intention to resign as a Director and Chief Operating Officer of the Company and will step down from the Board with immediate effect.