Fineos rebounds with profit over €500,000
The company, which develops software for banks and other financial institutions, made a pre-tax profit of €508,591 in 2003, reversing its massive 2002 loss, its latest accounts showed yesterday.
The company has also seen revenue rise to €17.8 million, a 15% rise on the previous year, with increases in key areas such as initial sales and recurring revenues. Initial licence fees rose from €1.8m to €4.25m, while recurring revenue was up to €2.98m from €2.7m.
However, there was a dip in revenue from consulting and training to €7.2m, a 25% fall. This was compensated for by the rise in third party sales of 900% to €2.5m.
Sales in Europe accounted for €13 million of the total. The company has in recent moved months to build up its presence in the Asia/Pacific region with a number of management appointments.
The company’s balance sheet also looks healthy, with €5 million in cash and no major long term creditors. Shareholders’ funds were up a touch to €7.8 million.
The company has been one of Ireland’s leading technology hopes and three years ago was planning to a float on the Dublin and London stock market. But the technology sector downturn put paid to that and the company was forced to cut back on jobs.
The number of employees fell from 209 in 2002 to 171 last year, with product development staff bearing the brunt of the cuts. The number of workers in their division fell to 120. The headcount reduction cut the wages and salary bill to €9 million, a €2 million decrease.
The majority of Fineos shares are owned by chief executive and founder Michael Kelly.
The company’s board includes William Burgess, who replaced the former AIB chief executive Tom Mulcahy as chairman last year.
The directors said in the accounts the “potential demand for the company’s product remains substantial” and it expects to increase sales this year and develop new products.
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