Bridge falls down over its forecast

By THIS IS MONEY
Updated:

 

LONDON Bridge Software has warned that half-year profits have crashed - just six months after forecasting they would soar.

It said falling demand among banks for its credit-risk management software meant profit before tax and exceptionals would be just £500,000 for the six months to 30 June against a £5.3m profit for the same time last year.

London Bridge forecast in February that earnings would rise 25% for the current year and said the US downturn would fuel demand for its technology as companies found it increasingly difficult to collect bad debts.

But the bankruptcies boom has failed to bear fruit for the company, which has just cut its workforce by 10% in response to the slump. The £1m cost of the cuts will be charged again secondhalf profits.

London Bridge said it was cashflow-positive and had £22m in the kitty. 'We expect to be profitable and generate cash for the remainder of the year,' chairman Gordon Crawford said.

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