Feeds

Stock and awe: Top City biz takes £32m hit after software upgrade axed

Surprised slickers' smashing streamlining system smashed

Secure remote control for conventional and virtual desktops

A leading City firm has halted the roll-out of software that was supposed to streamline its business but became more trouble than it was worth. Specifically, £32m of trouble.

Brewin Dolphin, in Smithfield St, London, alleged to investors it encountered “issues” with the "robustness" of a specialist financial application. It started installing the code in 2011 but has now stopped.

The City firm said it will take a £32m "exceptional pre-tax impairment charge" in the second half of the year as a result of the rollout, now abandoned.

Brewin Dolphin said computers running the new software in its Stocktrade share-dealing business and other departments will continue to do so, but non-upgraded machines – such as those in in its wealth management business – will instead get “appropriate enhancements”. This decision should keep the IT upgrade on budget and minimise risk, the company said.

The firm now has to sort out the payment of a further £15m over the coming decade for the software. “The group is engaged in negotiations to vary and settle these arrangements,” the company said on the subject.

Brewin Dolphin is one of the UK’s largest private investment companies with a fund of £28.2bn at its disposal. Its customers include individuals, trusts, charities and pension funds.

The biz was rolling out JHC Systems' Figaro software, which is used by stockbrokers and wealth managers to run investors’ portfolios.

Brewin Dolphin plumped for Figaro in 2011, in the belief JHC’s software would streamline its business processes and improve operational efficiency. The idea was to improve group margins by between 15 and 20 per cent.

But in a statement last week, Brewin Dolphin claimed: “The implementation has uncovered a number of issues with the functionality and robustness of the software that are taking additional time and resource to address.”

JHC Systems declined to comment. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
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
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
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.