Health service supplier iSoft warned on Friday that profits would be half the most optimistic City estimates after a key NHS customer failed to award iSoft a contract extension before its 30 April year-end.
Consequently, and following earlier reported NPfIT-related problems, iSoft said it would be able to match only half the profit forecast made by the City. Profit forecasts had been in the range of £24m to £42m. They will now be £17m to £22m.
The earlier reported problems consisted of a public relations battle fought by iSoft against "unfounded" speculation of financial difficulties at the firm, and a trading update in January which said 2005 revenues would be £45m below expectations because of delays to the NHS IT programme. ®