Shares in UK life and pensions software vendor Marlborough Stirling have slipped 20% to 35.5 pence as the company forecasts flat revenues throughout 2003.
In an update of recent business developments, Marlborough Stirling says it recently completed a £2.5 million restructuring programme which is expected to realise annual cost savings of £6 million.
Looking ahead, the company has a pipeline of £80 million in existing and contracted recurring revenue, with 55% of that total due to fall in the first half. This takes into account new business secured in recent weeks, including additional software projects in Canada and South Africa and increased scope of both mortgage and distribution software contracts in the UK. The company has also reported a strategic alliance with Skandia-owned Bankhall to provide quotations to intermediaries over its IFA portal IFAengine.
Although the figures are ahead of this time last year, the order book was swollen by a major outsourcing contract with Sun Life Financial of Canada that was signed in early 2002.
The downbeat statement has seen the company's share fall 8.5 pence from an overnight close of 44 pence. Marlborough Stirling shares were trading at 238.5 pence at the start of 2002.