UK banking systems house Raft International has elevated non-executive director Derek Hall to chief executive after reporting a £1.14 million loss before taxation for the six months ended April 2002.
Raft's half-yearly losses compare to a £83,000 loss in the equivalent period in 2001, and represent a £1.6 million decline in revenue from the vendor's core investment banking clientele. Overall sales were down 20% to £3.4 million.
The company says it has pared back expenses by £158,000 for the period with full year savings of £650,000 expected. The period end cash balance remains healthy at £4.5 million.
Former JP Morgan man Hall has been lined up to take over the helm of Raft from Frank Mobjerg in August as the company attempts to reduce its reliance on the investment banking markets it was initially established to serve. Mobjerg, a co-founder of Raft with chairman David Priestley, will concentrate his efforts on developing sales in continental Europe, with a focus on new markets in energy and operational risk. While the company reports a sales pipeline building for both Raft Energy and Raft Radar, its energy and operational risk solutions, the outlook remains uncertain as lengthened sales cycles continue to delay closure of transactions.
David Priestley, chairman comments: "We are still exposed to lengthy sales delays but I am optimistic of reporting significant progress in our next financial year in both energy and operational risk management."
Shares in the company dropped £0.015, or 22 percent, on the news, bottoming out at £0.052, the lowest since Raft listed on London's Alternative Investment Market at £0.64 in October 2000.