Intelligent Environments to breakeven for 2003

Intelligent Environments to breakeven for 2003

UK financial software house Intelligent Environments says it expects to breakeven for the year ending 31 December 2003, compared to a £2.5 million after-tax loss in 2002, after recording continued strong trading in the second half.

In an interim trading update, the company says it has been encouraged by the level of repeat business from existing customers for its online card acquisition and management software, including those acquired in the first half of the year, and also the revenue generated from the .NET Converter for AM. This product was sold to two further customers in the second half of 2003.

Total revenue for the year is up 31% to £3.5 million, while operating costs are down 36%. An operating loss of £0.2 million is stated after charging £0.8 million for R&D expenses. A £0.2 million tax credit from the Inland Revenue will push iE to breakeven for 2003.

The company finished the year-end with cash in the bank of £0.2 million after cutting cash outflow to £0.1 million for the second half of the year.

Looking ahead, iE is encouraged by "a healthy backlog of orders, strong pipeline activity by partners, a wider portfolio of products to sell and encouraging signs in the market of an upturn in application and Internet software spend."

Shares in the firm, which reports preliminary results at end-March 2004, moved up 10.6% to 9.31 pence.

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