Wealth Management Software hits break-even

Wealth Management Software hits break-even

UK-based Wealth Management Software is reporting an operating profit before goodwill amortisation of £0.246 million for the first half of this year, representing a significant improvement on last year's performance.

In the six months ended 30 June, 2002, the company reported a turnover of £6.074 million and profit before tax after exceptional items of £0.015 million, compared to a £3.246 million loss during the same period last year.

Despite challenging market conditions, the company has secured six contract wins for its flagship Lisa product with a total value of £3.5 million, including total licence revenue of £1.6 million during the first six months of 2002. This compares with only one Lisa contract sold in the whole of 2001. In April, the company reported an operating loss of £4.6 million as financial services firms put off spending decisions and cancelled contracts.

The six Lisa contracts won this year are with PPML, a subsidiary of Credit Suisse, Homeowners Friendly Society, Gerrards Private Bank on the Isle of Man, Teather & Greenwood, and Goy Harris Cartwright.

In addition, the company's new Lisa property asset management system sold to BAA in 2001 has now gone live at Heathrow and Gatwick. Wealth Management Software has received a further order for phase II of the project for implementation during the second half.

In January 2002 the company disposed of its estate agency software business for £240,000 in cash to a management buyout team. The company also disposed of the assets of Genesys Systems, including the intellectual property rights to Creation (a legacy pensions software product) to Dreamzone for £190,000 in cash in January 2002.

Cash at 30 June 2002 amounted to £1.424 million and finance lease commitments amounted to £0.032 million giving net funds of £1.392 million, as against £0.573 million at 31 December 2001.

As part of the streamlining of the business, the company’s headcount reduced from 165 at 31 December 2001 to 146 at 30 June 2002.

Earnings per share excluding exceptional items and goodwill for the six month period ammounted to 0.62p (2001:loss 6.04p).

While the general outlook for software sales to the financial services sector remains uncertain, Paul Newton, chairman of Wealth Management Software, is taking a positive stance. "Lisa’s breadth of functionality is securing revenues from new business areas of the financial services sector and the company will continue to exploit the capability of Lisa throughout the remainder of the year."

He adds: "We are targeting new geographic regions in continental Europe either directly or through third parties and this has produced some expressions of interest."

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