Back office systems supplier Financial Objects is reporting a significant decline in revenues and a loss before tax of £2.8 million for the year ending December 2002.
The company reported a 27% reduction in revenues to £12.8 million, compared to £17.5 million for the year earlier, reflecting the IT spending squeeze in its primary investment banking market. An operating loss of £1.6 million, compared with the profit of £2.2 million for 2001, was bumped up by a £760,000 exceptional charge against cost-cutting measures introduced during 2002.
Commenting on the results, Roger Foster, chairman, says: "Trading conditions in 2002 were affected by lengthening sales cycles and increasing margin pressure. As a result revenues and profits were significantly impacted."
More positively, Financial Objects is reporting a strengthening of the order book to £9.8m, compared to £9.2 million in 2001 and better news on the product front. The new component-based ActiveBank product booked £2.2 million of orders through five license sales in 2001, up from £1.7m in 2001, and the company also finished redevelopment of the legacy Ibis/S2 package, presenting opportunities for upgrading the existing user base in 2003.