TCA hit by project cancellations
29 August 2001 | 3100 views | 0
Specialist financial IT consultancy, The Terence Chapman Group has issued its second profits warning in as many months following the curtailment of a number of significant projects in the run-in to its financial year, ending 31 August 2001.
In a trading update on 10 July 2001, the Company stated that its performance in the second half of the current financial year would fall short of market expectations due to a deteriorating market environment and deferrals of client expenditure.
Since then, TCA has been hit by the cancellation of a number of major projects, including a decision by its biggest client ABN Amro to replace external consultants with home-grown IT talent.
Terry Chapman, group chief executive, comments: "Market conditions have deteriorated further through the summer and the Board will aim to achieve an appropriate balance between maintenance of capacity and profitable trading. With cash balances of approximately £20 million, the directors believe that the company will be well placed to benefit when market conditions improve."