Isoft confirms director suspension

SHARES in Isoft dropped in early trading today after the healthcare software company admitted that it had suspended one of its senior directors more than four months ago but had kept the news from investors.

Mark Woodbridge, a former finance director of Torex, the software group with which Isoft merged last year, was appointed business development director in the wake of the tie-up, but was suspended in March.

Yesterday he was re-elected to the board at the company‘s annual meeting even though he is still under suspension.

A company spokesman refused to discuss the reasons for Woodbridge‘s suspension, tersely insisting it was a ?confidential employee matter‘.

In a statement to the stock exchange today, the company would say only that it was for reasons that predated last year‘s £700m merger, which went ahead only after a lengthy legal review because of concerns about competition issues. In the end, the Office of Fair Trading approved the deal on condition Isoft sold its laboratory systems division.

The company spokesman today defended the decision not to inform investors of Woodbridge‘s suspension and said Isoft had consulted the UK Listing Authority, which regulates stock market announcements, about the situation.

?The important thing to stress is that this has no bearing on the assets, liabilities or financial position of Isoft or on its current or future performance. In fact the business is going extremely well, we have a myriad of opportunities and international expansion is going well,‘ the spokesman insisted, adding that institutional investors were comfortable with the company‘s handling of the matter.

Three weeks ago Woodbridge was one of five board directors who cashed in 266,342 shares worth £44m barely a week after an enthusiastic trading statement at the company‘s annual results presentation. He had already sold 200,000 shares in February.

Isoft shares dropped 10.5p to 404p in early trading. The shares were worth 446p earlier this year.