Raft warns of impending losses
15 August 2001 | 2174 views | 0
Financial software component supplier Raft International is anticipating a substantial drop in revenues leading to losses for the year-end 31 October 2001.
The warning comes barely two weeks after AIM-listed Raft issued a generally positive statement alongside the publication of its interim results. At the time, the company was expecting to clinch a £1.8 million deal with a large investment bank.
In a statement issued today, the company warns that the conclusion of these negotiations will be "substantially delayed", and, as a result, full year revenue growth is likely to be lower than in the first half of the year. "This, together with the heavier than usual level of investment this year, is likely to result in a one-off loss in the results for the year-ended 31 October 2001."
Raft's broker Seymour Pierce has cut its full-year forecast for the company from a £335,000 pre-tax profit to a £775,000 loss.
David Priestley, Raft executive chairman of Raft, comments: "The delay in concluding these negotiations has been very disappointing yet, despite this and the current difficult market conditions for software providers in the investment banking sector, we still remain positive that Raft can continue to win new mandates in both our traditional market, and new markets such as energy trading."
The company is considering changing its business model to reduce its dependence on large contracts - moving from a license-based system to a pay-as-you-go scheme.