Operating losses and expenses continue to rise at Patsystems, the UK-based supplier of screen-based derivatives trading technology, which is reporting its first set of interim results under new CEO, David Jones.
The loss before tax for the third quarter at £3.2m is 12% higher than third quarter last year and 11% higher than second quarter loss before tax of £2.9m. Operating expenses have risen 3% in the quarter.
The third quarter has been a period of significant change for the group, with a shake-up in senior management leading to a strategic review of the group's core business, culminating in a 26% reduction in headcount in October.
The third quarter saw continued poor sales performance with only one new contract win. Two previously signed clients, who had yet to deploy patsystems' software, eased out of their contracts and a third became an end user of another patsystems client during the quarter.
Commenting on the results, Richard Sandor, non-executive chairman, says: "Under David Jones’ leadership, management has made, in a relatively short time, significant progress in refocusing and restructuring the group’s operations with a view to improving shareholder value, much of which has been lost in the last twelve months."
The benefits of the restructuring programme will not be felt until next year, he says.