Mondas looks ahead after traumatic first half

Mondas looks ahead after traumatic first half

Mondas, a UK-based provider of banking and securities software, is reporting a marginal narrowing of losses and flat revenues for the six months to 31 October 2004.

Mondas recorded an operating loss, before goodwill amortisation and restructuring charges, of £429,859 (2003: loss £496,244) on turnover of £1.82 million (2003: £1.85 million) for the six months.

On a positive note, Mondas says these losses arose in the first quarter but were partially reversed by a small profit in Q2. But overall losses before tax increased to £1.45m (2003: £1.09m), mainly due to a restructuring charge of £0.42m.

The company, which has reported a loss every year since it was floated on the AIM in 1996, says it is encouraged by an improving trend in its results, which were acheived "against a background of some previous internal turmoil and difficult market conditions".

Mondas sacked its chairman and CEO Tim Simon in August last year. Simon later sent a letter to shareholders which contained resolutions to appoint himself to the board if new chief executive Jarlath McGee and non-exectutive director Bernard Fairman were not re-appointed at the firm's annual general meeting. Chairman Colin Peters urged shareholders not to allow Simon return, saying the firm had performed badly because it had failed to develop successful relationships with clients and responsibility for this failure rested with Simon.

In today's statement, Mondas says its interim results reflect a challenging period for the company, but there are clear signs that it is moving away from the problems of the past.

The vendor says the implementation of its technology at Credit Suisse First Boston (Europe) has led to the identification of further opportunities over the next two years, including development of functionality and international adoption of the system. Mondas has also won a deal with HSBC and the bank will implement its software in the second half.

Looking ahead, the group says it is still seeking acquisitions in the asset servicing market and is in negotiations with a number of businesses. The firm has also signed an agreement with Rhyme Systems which will licence its fund manager enquiry system, FES. Rhyme Systems will also be a distributor of the vendor's flagship product, Radica CAPS.

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