Feeds

iSoft lives to restate another day

Long-awaited results show massive loss

Build a business case: developing custom apps

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". ®

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.