Infobank: losses up, board member out
Still loads of money in the bank though
Loss-making e-commerce software company Infobank has made even greater losses this year, but thanks to another round of fundraising still has over £90 million in the bank.
The company lost £36 million for 2000, as opposed to £10.8 million last year. Gross profit down as well from 2.3 million from £4.6 million last year. This on a huge reduction in turnover of £2.7 million, compared to £46.1 million. Eh? Yes folks, it's all to do with accounting practices. The company isn't exactly forthcoming about where the huge discrepancy comes in.
"Discontinued operations" is it. And a staggering £52.4 million in "administration expenses". Que? Sales and marketing (£18.4 million), product development (£7.9 million), general and administration (£6.9 million), goodwill (£6.4 million) and employee share-based compensation (12.9 million).
Infobank is basically playing a profit waiting game while it expands the market for its core InTrade software. It's aiming at big companies that want private exchanges and it seems to be doing fairly well at it - it's now got 40 customers from 7 last year and revenue is well up.
What about the money situation? It got £130 million from people that obviously thought they could see a good thing. £93.2 million of this is left in the bank. And Infobank gives itself a generous £26.5 million value on intangible assets. What solid news can we learn? Not much. Oh, loss per share up from 35.77p to 65.84p.
On top of this, there is a bit of a board reshuffle. Out goes COO Jim Conning to "pursue other activities". CEO Graham Sadd is bumped up to president and Anthony 'Call Me Tony' Stepanski brought in to fill his boots.
Tony Stepanski said: "The opportunity exists for me to help take Infobank to a leadership position in the rapidly expanding field..." blah, blah, blah. ®