Intelligent Environments downgrades forecasts on building society cancellation
07 December 2009 | 2123 views | 0
Source: Intelligent Environments
Intelligent Environments Group plc (AIM Ticker: IEN), the online software provider for financial services, today announces a trading update prior to the Group's year-end on 31 December 2009.
The recent announcement of the merger of two major UK financial institutions in the building society sector has resulted in a significant order for the IE NetFinance platform being cancelled.
As a result, revenues and profit for the year ending 31 December will not meet market expectations, but should be in line with 2008. Current year cash flows have not been materially affected. In addition, despite winning 4 new clients in the year compared to 2 in 2008, the downturn in the consumer finance market has limited the growth potential in 2009 of our transactional based revenue model, which is a temporary setback to long term profitable growth.
The Group's recently launched platform for NS&I, one of the UK's largest savings and investment providers with 27 million customers in addition to 2 new brands for Barclaycard, are testimony to IE's ability to supply market leading solutions to support the online aspirations of the UK's financial services industry.
These significant clients in addition to recent contract wins fully endorse the strength of IE's business model and we remain confident of profitable growth during 2010 and beyond.