Baltimore loss reduction aided by 600 job cuts

LOSSES at Baltimore Technologies were reduced substantially last year, helped by the loss of nearly 600 jobs. Full year results from Baltimore shows losses before tax fell to €96m from €972m in the year to end December 2002.

Baltimore, once ranked among Britain’s 100 most valuable companies, said the restructuring which included a fall in head count from 885 to 295 and the sale of several business units, had stemmed losses and put the company on a sound

financial footing. A further 30 jobs were cut in February.

Revenue halved from 103.8m to 51.6m, again from the divestment of businesses. A breakdown of revenue shows service revenues down 24% year-on-year, a sign that the IT market has yet to see a

rebound in investment levels.

Operating expenses fell by 74% to 87m and it had net cash of 26m at the end of the year. A further 5m is due to the company from the sale of businesses and there is little outstanding debt.

However, its shares fell 12%, or 3p, to 23p yesterday in a rising market as the results were below many analysts forecasts.

“As the company focuses on growing revenues rather than driving profitability through cost reduction, breakeven remains distant,” Davy Stockbrokers analyst Bernie Lardner said in a research note.

The company said that trading this year would be slow due to political uncertainties.

“The overall market environment remains uncertain, difficult to

predict and slow-moving causing

a lengthening of the sales cycle,” chief executive Bijan Khezri said. “Public sector demand will be critical, because the private sector environment will remain very challenging, slow moving and unpredictable.”

But because of terrorism and war fears there would be opportunities to sell many products to security services around the world. Currently it supplies the Ministry of Defence in Britain and the US Central Intelligence Agency.

In a separate announcement, Baltimore also said it had won a $2.8m contract with the Saudi Arabia Monetary Authority to secure online payments systems within the Saudi banking sector to assure the integrity and authenticity of all transactions.