Raft, which earlier this year declined a number of indicative bid offers for the group, says the results are in line with expectations and come despite "continuing delays to both client IT spend and sales cycles".

The company scored seven significant contract wins during the period with blue chip clients including American Electric Power, Reliant Resources and Abbey National and struck a strategically important distribution deal with SunGard in the energy industry.

Outright licences accounted for 22% of turnover (2002: five per cent) with the proportion of recurring licence fees and maintenance reducing slightly to two per cent (2002: four per cent).

The group has reduced its dependency on the investment banking sector, which now accounts for 43% of gross revenue against 68% in 2002, and more than doubled its revenue from the energy markets, accounting for 28% of turnover in 2003. Seventy-five per cent of the increase in turnover came from the US, where Raft opened an office in Houston to cater for enery market demand.

Raft chairman David Priestley says the firm is wll placed to benefit from Basel II Accord legislation in the banking sector and increased awareness of improved credit processes in the energy industry.

He states: "We have no doubt that both of these markets will generate a significant deal flow for our product range during the next two or three years."

Priestley is set to take over the chief executive's chair at the end of 2003 as current incumbent Derek Hall steps aside. Hall was lined up to take over the helm of Raft from Frank Mobjerg in August last year as the company looked to diversify its income streams.