London Bridge Software says it will meet revenue and profitability forecasts for 2001 on the back of a strengthening market for debt collection software and the return to profitability of the Phoenix banking software division in the US.
In a trading statement issued this morning, London Bridge Software says revenues should be approximately £72m; adjusted pre-tax profits approximately £11m; and year-end net cash of £21m, an increase of £12m over the interim results.
The results were cemented with the signing of two new contracts during December 2001, each exceeding the company's announcement threshold of $1 million.
The first, for the Debt Manager product, is with Household Auto Finance Company, one of the largest independent auto finance companies in the US, for collections and recovery of defaulting auto loans. The sale includes an initial licence, significant consulting revenue and ongoing maintenance.
The second contract is for the Phoenix banking product with a US domestic bank. LBS says the un-named bank will be the biggest US user of Phoenix. The contract includes an initial licence, implementation consulting and recurring service revenue as LBS will run the software at its Atlanta data centre as an application service provider.
A restructuring programme aimed at reducing costs and improving management within the Phoenix division will enable the unit to reach profitability and show an operating profit for 2001, reports LBS.
Within its core business, LBS says the market for debt recovery and collections software picked up significantly in the in the run up to the year end, particularly in the US. The company says it expects to see a continuation of this strengthened demand throughout 2002.