iE shares hit new low as losses widen

iE shares hit new low as losses widen

UK retail banking software house Intelligent Environments is anticipating a ten per cent drop in revenue and widening losses of £0.3 million for the year ending 31 December 2004.

In a trading update, the company says that despite posting a 20% rise in revenue to £1.8 million in the second half, it failed to eliminate the first half revenue shortfall. In particular, decisions on three large contracts that were expected to be finalised in 2004 have slipped into 2005.

As a result, full year revenues are expected to be approximately 10% down compared to 2003 revenue of £3.5 million, while losses widened to £0.3 million from £0.2 million a year earlier.

The company is taking heart from its improved second half showing, as it hit break even at the operating level and was cash generative, improving its cash position from £0.1 million at the end of June 2004 to £0.2 million at the year-end.

The City was unimpressed, however, marking down iE's share price by 18.7% to a new low of 4.88 pence.

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