Feeds

iSoft lives to restate another day

Long-awaited results show massive loss

The essential guide to IT transformation

iSoft today revealed a cataclysmic loss but says it has gained enough breathing space to restructure the business back to profitability.

However, the NHS software provider's financial results contains a thicket of provisos and material uncertainties, with the company noting in the accounts that some of these could cast doubt on its ability to continue as a going concern.

iSoft's publication of the long-delayed year-end statement has staved off the prospect of a shares delisting and comes just days after the Financial Services Authority announced a formal probe into possible accounting irregularities in the firm's accounts for the years to 2004 and 2005.

Today's figures showed revenues of £210.7m for the year to April 30, 2006, compared to £186.1m the previous year. A massive charge of £351.4m for goodwill impairment has sent operating costs spiralling to £539.8m, resulting in pre-tax losses of £343.8m, compared to a £5.9m profit the previous year.

The accounts have been compiled under the new revenue recognition policy the adopted earlier this year. The firm is reversing revenues for the years 2005, 2004, and 2003, to the tune of £76m, £54m and £44m. This revenue should be recognised in subsequent years.

In the notes to the accounts, iSoft's board says it is not possible to anticipate the implications of the FSA investigation; and adjustments or restatements to the firm's figures may be necessary, which could affect its financial position.

The board also warns of issues relating to its work for the NHS's NPfIT upgrade, pointing to problems confirming status of delivery with some Local Service Providers (LSPs). This could lead to…adjustments or restatements to its financial statements.

It also points to allegations of contractual breaches by iSoft from two LSPs, Accenture and CSC. The company denies the accusations and says it will defend them, but it warns that should they be substantiated, it could give rise to, er, adjustments to the financial statements.

The brightest spot in today's statement is that iSoft has renegotiated its banking arrangements, on the back of its cash flow projections for the next 12 months, and a major restructuring, including the disposal of non-core businesses.

However, the board warns that in preparing its projections, it recognises "material uncertainties that may cast doubt on the Group's ability to continue as a going concern". ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?