iSoft predicts fall in revenue and offers itself for sale
Print storyNPfIT provider in intensive care
Posted in Software & Security, 17th October 2006 10:47 GMT
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Troubled health provider iSoft is up for sale and expects revenues to fall between 10 and 15 per cent for the year.
iSoft is supposed to be playing a central role in the world's largest public sector IT project - Blair's National Programme for IT (NPfIT) - to transform technology use in the NHS. The company is being investigated by the Financial Services Authority for possible fraud.
iSoft has apparently had several offers from firms interested in taking a stake in the company or forming an alliance. iSoft said offers came from investment companies and other healthcare providers.
It also said it was in talks with several possible buyers about selling the company.
The statement says: "The board has concluded that shareholders' interests are best served by opening discussions with a number of these parties with the objective of clarifying the options and determining the most appropriate route forward for the company."
The company warned investors that revenues were likely to fall for the year. iSoft made a pre-tax loss of £343m last year on revenues of £210m.
iSoft has already been bailed out this year, receiving £80m of future payments from the Department of Health.
iSoft shares were trading down nearly two per cent on the news - they have lost more than three quarters of their value this year.
The company's annual general meeting kicks off this afternoon and is likely to be lively. ®
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