Feeds

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

Surprised slickers' smashing streamlining system smashed

Eight steps to building an HP BladeSystem

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. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.