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Matthew Vella
The board of directors at iSoft, the troubled healthcare firm which is currently bidding for the IT system at Mater Dei hospital, has announced it has received information “suggesting possible accounting irregularities”.
In a market announcement issued two weeks ago, the board said it had commissioned an investigation into the possible irregularities.
iSoft’s directors are claiming there will be no “material impact” on the revenue figures for the group for the year ended 30 April 2006 of GBP195-200 million that had been announced under its new accounting policy on 8 June 2006.
iSoft is at the centre of a financial storm after two profit warnings and a change in accounting policy slashed the company’s value and prompted the departure of CEO Tim Whiston.
A major supplier of software to the multi-billion British National Health Service’s IT programme, iSoft shares have dived to 55.5p since opening at around 400p at the start of the year, when Whiston announced that revenues and profits from the IT programme would be GBP55-45 million lower respectively than expected this year.
Discussions with the banks over the company’s banking covenants, which have been broken following the change in accounting policy, are still ongoing.
The tender process for Mater Dei’s major integrated health service is expected to go on unhindered by reports in the British press of iSoft’s current financial troubles.
In comments to MaltaToday, an iSoft spokesperson said on 16 July the company was committed to continue its operations in Malta. The spokesperson said iSoft had been profitable both under its old accounting policy as well the new policy. “The company also had a net cash position (of GBP16 million) at year-end and is financially solid and fully able to deliver on its commitments under the Mater Dei IT tender.”
The company has not yet presented its year-end accounts for April 2006.
iSoft is currently providing the patient administration IT solution at St Luke’s Hospital.
See letters page 24
Matthew Vella
The board of directors at iSoft, the troubled healthcare firm which is currently bidding for the IT system at Mater Dei hospital, has announced it has received information “suggesting possible accounting irregularities”.
In a market announcement issued two weeks ago, the board said it had commissioned an investigation into the possible irregularities.
iSoft’s directors are claiming there will be no “material impact” on the revenue figures for the group for the year ended 30 April 2006 of GBP195-200 million that had been announced under its new accounting policy on 8 June 2006.
iSoft is at the centre of a financial storm after two profit warnings and a change in accounting policy slashed the company’s value and prompted the departure of CEO Tim Whiston.
A major supplier of software to the multi-billion British National Health Service’s IT programme, iSoft shares have dived to 55.5p since opening at around 400p at the start of the year, when Whiston announced that revenues and profits from the IT programme would be GBP55-45 million lower respectively than expected this year.
Discussions with the banks over the company’s banking covenants, which have been broken following the change in accounting policy, are still ongoing.
The tender process for Mater Dei’s major integrated health service is expected to go on unhindered by reports in the British press of iSoft’s current financial troubles.
In comments to MaltaToday, an iSoft spokesperson said on 16 July the company was committed to continue its operations in Malta. The spokesperson said iSoft had been profitable both under its old accounting policy as well the new policy. “The company also had a net cash position (of GBP16 million) at year-end and is financially solid and fully able to deliver on its commitments under the Mater Dei IT tender.”
The company has not yet presented its year-end accounts for April 2006.
iSoft is currently providing the patient administration IT solution at St Luke’s Hospital.
mvella@mediatoday.com.mt
Links:
www.maltatoday.com.mt/2006/07/16/t10.html
Links:
www.maltatoday.com.mt/2006/07/16/t10.html
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