NSB trims three years' figures

NSB Retail Systems marked its last three years of sales and operating profits sharply lower as it adjusted accounting practices to meet tighter American standards.

Chief executive Nikki Beckett said the existing rules of revenue recognition for software companies in Britain were too arbitrary and adopting tighter standards of when long-term contract sales are booked gave 'firmer foundation of profits and revenues'.

The former Businesswoman of the Year forecast that scores of other British technology firms, under pressure from the accountants in the wake of the Enron debacle, would have to adopt similar standards.

NSB, which issued three profit warnings last year, said operating profits in the year to 31 December were £12.5m, at the lower end of forecasts. Under its new accounting standards, they would have been £4.5m.

Pre-tax losses rose to £89m from £16.5m, but included £93m of goodwill related to its £272m purchase of Canada's STS in 2000. Under the new standards, sales for the year were £93.8m.

Further cost reductions are on the way after the axing of 133 jobs last year. The cuts are most likely to be in the British operation while the company concentrates on its growing US business.