WMS and Intelligent Environments fuel tech recovery hopes

WMS and Intelligent Environments fuel tech recovery hopes

Further evidence of a mild recovery in financial IT spending has emerged from half-yearly trading updates from UK small caps Intelligent Environments and Wealth Management Software.

Intelligent Environments is reporting an increase in revenue of approximately 33% for the six month period ending 30 June 2003, compared to the same period last year.

Sales totalled £1.9 million in the period, up from £1.4 million in the half year to June 2002.

Licence sales were up 100% and accounted for 24% of total revenue. Service revenue was up 13% and accounted for 49% of total revenue and support revenues rose 43% over 2002.

The company expects to break even at the operating level compared to a loss of £1.9 million last year. An R&D tax credit from the Inland Revenue should allow the firm to report a profit for the period of approximately £0.2 million compared to a loss of £1.6 million last year.

By the end of June the company had a cash balance of £0.3 million.

Commenting, iE chairman Clive Richards says the results were ahead of management expectations "and give further evidence of the financial recovery of the company".

At Wealth Management Software operating profit was also slightly ahead of management's expectations at the half year. Cash has increased by £480,000 in the six months, from £1.44 million at 31 December 2002 to £1.92 million at 30 June 2003.

The firm says it has received a second order in Germany, from Bankhaus Bauer in Stuttgart for the Lisa Fund Manager product. The contract is valued at £145,000 which will be recognised in the second half of this year and will provide the bank with full European private client management.

Paul Newton, WMS chairman comments: "This development will provide WMS with a European business model solution which should enable the company to win further orders in Germany."

BWD Rensburg has also placed an order for Lisa Document Broker and Lisa Document Warehouse. The value of the contract is £350,000 of which £180,000 is for a licence. This project will be implemented between August 2003 and June 2004 and licence revenues will be recognised equally between the two years.

Further revenues are also forthcoming from Credit Suisse subsidiary PPML, which went live with the Lisa Pensions product in June. WMS is reporting additional orders from PPML for professional services totalling £0.6 million.

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