Troubled healthcare IT firm iSoft, a key supplier to the
NHS’s £12.4bn National Programme for IT (NPfIT), has admitted it
may not survive after six-month results showed further
losses.
The firm revealed pre-tax losses of £14.3m in the six months to
31 October, with revenues down by 11.6%. The losses figure includes
£11.6m of exceptional costs relating to restructuring, including
redundancies and the closure of the firm’s former Manchester head
office.
The results announcement said the supplier, which is contracted
to provide its Lorenzo care records system as a core part of the
NHS scheme, was “now delivering NPfIT milestones on schedule”.
Chairman and acting chief executive John Weston added that
iSoft’s position as part of NPfIT had been “stabilised”, while a
new agreement with lead contractor CSC “underpins and de-risks the
development programme” for Lorenzo.
“Management has been strengthened at all levels and significant
action has been taken to reduce costs,” he said.
But the company, which was put up for sale in October, has
admitted it may not survive.
In a statement released with the results, iSoft warned, “In
preparing these projections the directors recognise that there are
material uncertainties that may cast significant doubt on the
Group’s ability to continue as a going concern.”
The software firm is currently under investigation by the
Financial Services Authority after irregularities were found in its
2004 and 2005 accounts.
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