iSoft not out of woods yet

The financial results of key NHS IT programme software supplier, iSoft have added to its woes with a £14.6 million loss.


The financial results of key National Health Service (NHS) IT programme software supplier, iSoft have added to its woes with a £14.6 million loss.

The eagerly awaited results of its performance during the six months between May and October this year saw the UK software vendor post the loss in comparison to an £8m profit compared to the same period last year.

It also compounds the £344m adjustment of its financials during 2005-6, having been forced to change accounting practices, which saw it put revenue booked years in advance on current balances.

And the company is the subject of ongoing investigations by the Financial Services Authority and the Accountancy Investigation and Disciplinary Board.

John Weston, iSoft chairman said: "We have secured bank funding until late 2007 but it is clear that if the business is to prosper we must soon put in place long-term funding arrangements.”

He also confirmed the company was in talks to find potential buyers.

When systems integrator Accenture pulled out of the NHS Connecting for Heath (CfH) IT programme earlier this year, a leaked report revealed it had thought there was “no believable” upgrade path for iSoft’s Lorenzo clinical records software so central to the programme plans.

But Weston said the subcontracting of the software to integrator CSC, which expanded its CfH role with the transfer of Accenture’s responsibilities in September, had helped the company continue its operations.

"Recommended For You"

Updated: iSoft shareholders overwhelmingly support sale to IBA Updated: CSC says it blocked iSoft sale to ensure delivery of NHS IT programme