18 December 2017
visit www.ebaday.com

Raft slips into the red, cuts staff

17 December 2001  |  2418 views  |  0 Raft slips into the red, cuts staff

AIM-listed financial software component supplier Raft is reporting a £826,000 loss in preliminary results for the year ended 31 October 2001.

Raft CEO, Frank Mobjerg, says: "Market conditions and increased overheads have led to a disappointing financial result."

Full year revenue grew by three per cent to £9,468,000 (2000: £9,173,000), however second half revenue was 11% lower than the first six months of the year. The disappointing second-half performance coincided with a hike in spending on sales and marketing activities, pushing the company into the red. Total overheads increased by £1.6 million over 1999/2000, of which £683,000 related to sales and marketing.

In its first full-year of trading in 2000, Raft reported pre-tax profits of £171,000.

Mobjerg says the company has moved to eliminate no-recurring costs and reduce employee numbers by 10%, resulting in anticipated savings of £600,000 for the coming year.

He says the number of prospects in the pipeline has increased substantially following the increased sales and marketing focus. "However, with the extensions in the buying cycle for our customers, successful completion of new transactions are unlikely to have an impact until later in the current financial year."

Raft, which is currently migrating its component inventory to the Microsoft .Net platform, says its primary focus during the coming year will centre on the demands arising from the increased regulation of both the financial and energy markets in the areas of credit, operational and energy credit risk management. The company says it is also working with a financial sector firm on the development of a wealth management program for private client asset management.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Brief: Raft opens Swedish operation

Brief: Raft opens Swedish operation

01 November 2001  |  2215 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.niceactimize.comvisit www.atos.net

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11315 views comments | 3 tweets | 4 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
10390 views comments | 21 tweets | 26 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7823 views comments | 19 tweets | 22 linkedin
Digital banking startup Loot secures £2.2 million seed roundDigital banking startup Loot secures £...
7580 views comments | 5 tweets | 11 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7471 views comments | 6 tweets | 26 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job