Downturn to put LBS in the red

LONDON Bridge Software admitted it had misread the impact of the economic downturn on its business, saying the sales boom it had forecast had instead turned into a £2.9m interim pre-tax loss.

The financial software supplier predicted in February that earnings would rise 25% this year as credit providers turned to its technology to deal with the rise in bad debts that would flow from the economic malaise.

But finance director Gordon Stuart said today key customers such as banks were delaying major purchases as they encountered financial hardships. This caused revenue to fall 13% to £32.3m, leaving a profit before goodwill amortisation of just £500,000 compared with £5.3m previously. But the dividend is maintained at 0.35p.

London Bridge also warned it did not expect the market to improve in the short term, saying the sales cycle had been 'more extended' than it anticipated. The shares were steady today at 34 1/2p.