Sales drought hits Wealth Management Software

Sales drought hits Wealth Management Software

UK-based Wealth Management Software is reporting an operating loss of £4.6 million after winning only £0.7 million in license sales for its flagship Lisa product in the year to December 2001.

Professional services revenue of £11.3 million (2000: £11.2 million) brought total turnover up to £12 million (2000: £15.5 million). The company is reporting a loss per share, excluding exceptional items and goodwill, of 11.24p against an EPS of 1.93p for 2000.

Says WMS chairman, Paul Newton: "The financial services marketplace in 2001 was very uncertain and this resulted in potential clients either delaying decisions in making major capital expenditure on Lisa software or cancelling projects in their entirety."

The West Midlands company, which had been anticipating license sales of £9 million during 2001, was forced to cut staff numbers by 57 to 165 in the final quarter.

Exceptional items within operating charges include £388,000 of reorganisation costs and £105,000 write back of costs relating to the recovery of a £1.2 million debt from Lloyds TSB/Scottish Widows.

In January, the firm moved to dispose of nore-core assets, including its estate agency division and legacy pensions product Creation.

Newton is cautiously upbeat about prospects for the coming year: "Whilst the financial services marketplace remains challenging, we have seen a marked improvement in demand so far in 2002. To date, we have booked five Lisa contracts with a total licence value of £1.1 million."

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