Intelligent Environments reports revenue rise

Intelligent Environments reports revenue rise

UK retail banking software vendor Intelligent Environments (iE) says it expects to record full year revenue growth of over 40%, with operating profits in line with market estimates.

In a pre-close trading update for the year ended 31 December 2007, the vendor says its cash position also improved over the period, with net cash funds standing at £1 million at the year-end.

During the year the vendor completed major contracts with Barclaycard, LaSer and the Royal Bank of Scotland. This takes the number of customers generating income on its transactional model to 16, giving the platform for strong future growth in recurring revenues, says iE.

In addition, iE says projects undertaken with its first two building society clients were successfully delivered and provide a platform for future growth in the UK savings market.

However, the vendor did incur a "substantial increase in one-off costs" during the period as it recruited new staff and employed outside contractors to deliver contracts.

The vendor says it expects overheads are expected to fall in 2008 due to the forecasted change in mix from service-related revenues to recurring revenues.

But despite the bullish update, iE stock was down 0.25 pence, or 2.74%, to 8.88 pence in morning trading.

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