16 July 2018
Visit www.gemalto.com

Financial Objects year-end hit by ActiveBank contract overruns

24 November 2003  |  2812 views  |  0 Financial Objects year-end hit by ActiveBank contract overruns

Financial Objects is to make a £1.7 million provision in its year-end accounts after discovering significant cost-overruns in two major contracts at its troubled ActiveBank division.

The London-based banking systems vendor says results for the full year to 31 December 2003 will be significantly below current market expectations, due largely to these cost overruns but also due to adverse trading conditions for ActiveBank. The latest set of problems emerged during a project-by-project analysis at ActiveBank, initiated following a slump in sales for the component-based system.

The firm says its Ibis division, which represents over 50% of group revenues, continues to improve and is trading profitably.

The group's cash position remains strong, with balances of £7.1m at 31 October 2003, but as a consequence of the overall trading position and the subsequent shortfall in distributable reserves, there will be no final dividend payment for 2003.

Roger Foster, chairman, Financial Objects, says the board remains committed to its strategy for ActiveBank but is disappointed by the impact that the contract overruns will have on results.

"The directors are focused on successfully completing these contracts and believe that they will provide important reference sites for the future. We envisage that the short term financial impact of these contracts will be compensated for by the long term benefit of opening two major new markets for our products," says Foster.

He says the firm is making progress in its turnaround plans for the business. The company has now established an Indian development subsidiary in Bangalore with 18 employees, and signed a Scandinavian reseller agreement, the first in its budding partner programme.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Brief: Financial Objects licenses Surecomp trade finance module

Brief: Financial Objects licenses Surecomp trade finance module

22 October 2003  |  2880 views  |  0 comments
Financial Objects hires Peter Watts to lead international sales

Financial Objects hires Peter Watts to lead international sales

08 October 2003  |  3028 views  |  0 comments
Financial Objects upgrades activebank product

Financial Objects upgrades activebank product

06 October 2003  |  2732 views  |  0 comments
Revenues continue to fall at Financial Objects

Revenues continue to fall at Financial Objects

20 August 2003  |  3130 views  |  0 comments
Roger Foster re-assumes control at Financial Objects

Roger Foster re-assumes control at Financial Objects

30 June 2003  |  6636 views  |  0 comments
Financial Objects reviews ActiveBank as sales slide

Financial Objects reviews ActiveBank as sales slide

19 June 2003  |  3102 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.aciworldwide.comVisit info.nice.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Flux ready for take-off on Barclays Launchpad; scores trial with Costa CoffeeFlux ready for take-off on Barclays Launch...
10553 views comments | 4 tweets | 9 linkedin
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
9572 views comments | 18 tweets | 30 linkedin
PayPal ready to spend $3bn a year on acquisitionsPayPal ready to spend $3bn a year on acqui...
8113 views comments | 13 tweets | 17 linkedin
Championing financial inclusion and helping the UnstoppablesChampioning financial inclusion and helpin...
8108 views comments | 3 tweets | 1 linkedin
No greater change will occur than that in financial servicesNo greater change will occur than that in...
7661 views comments | 7 tweets | 13 linkedin

Featured job

to GBP £120K base, double ote, benefits
Frankfurt, Germany

Find your next job