TCA hit by project cancellations

TCA hit by project cancellations

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."

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