Full-year results in March will give back office optimisation software specialist EG Solutions (EGS:AIM) the chance to draw a line under a round of management upheaval and at the same time return investor attention to the underlying value in the equity.
The shares fell 15% to 76.5p on the day that chief executive John O’Connell walked out late last year (6 Dec ‘13), the consequence of building friction between O’Connell on one side and founder Elizabeth Gooch and some institutional investors on the other. They have continued to fall steeply since, losing more than a third more of their value to reach 48.5p.
Despite this swoon, analysts at broker Panmure Gordon continue to believe EG Solutions should be trading in excess of 100p, based on new contract wins potential and the firm’s increasingly important reseller deal with Aspect.
The partner company provides workforce optimisation solutions to over 3,000 clients in 50 countries, so at a stroke the agreement lends EG the global scale it had previously found so hard to achieve.
Some analysts believe Aspect could help EG double, even triple, its new business potential. The £8 million cap Aim-quoted firm earns around an 80% slice of the revenues generated under the agreement, which also saw Aspect take a 10% stake in EG and a seat on the board.

EG Solutions’ shares offer plenty of upside potential if management can steady the ship.