Financial Objects is reporting a slight dip in revenues for 2001, down five per cent to £17.5 million, against a return to profits at both operating and pre-tax level.
Roger Foster, Financial Objects chairman, says: "Against the industry backdrop of difficult market conditions during 2001, we have focused on achieving bottom line profitability and a positive cashflow."
Profit before tax and amortisation increased from £0.3 million in 2000 to £2.2 million for 2001, after taking an exceptional charge in the second half of 2001 against an irrecoverable debt from an unnamed Internet bank. Operating profit was £o.37 million, compared to a loss of £1.7m in 2000. Cash inflow from operating activities during 2001 was £2.8 million, compared with a £0.1 million outflow in 2000.
Profit increase is largely the result of a cost reduction programme undertaken by the company during 2000 and improved service revenues on Financial Objects' ActiveBank business, says Foster.
ActivBank achieved revenues of £7.6 million in 2001, servicing over ten customers. Financial Objects says it expects to strengthen this side of its business in the coming year and keep on track for a steady performance.