Intelligent Environments (iE), a UK-based provider of e-business software to financial services companies, has warned thats its short-term financial position is dependent on continuing orders from existing customers.
The company, which has almost halved its headcount over the past year in a desperate bid to shore up its finances, says it had £0.9 million cash in the bank by the end of June. This followed an institutional placing in March, aimed at funding trading losses and providing further working capital, which raised a net £2.2 million. The company is currently spending £0.4 million per month, a 50% reduction on the same period last year.
In a statement, the company says: "Although our cash position is not as strong as anticipated, due to the slower recovery in IT investment, we have reduced our ongoing cash burn significantly."
AIM-listed iE is reporting static turnover from continuing operations at £1.4 million for the six months to June 2002, and operating losses of £1.9 million (2001: £3.6 million).
The company has just initiated a new revenue sharing agreement with the Bank of New York, and won repeat business in the first half with First Data Europe and Royal Bank of Scotland in credit cards, and at Generali International and First State Investments in the retail investment market.
Since the period end, iE says it has booked two tax credits of £0.3 million in total relating to R&D spend. The company has completed the development of its first Microsoft .NET product for the credit card market and developed software for existing customers to upgrade older systems to newer Microsoft technology.