Further losses by Eontec to end 2002

Banking software firm Eontec has seen losses continue as turnover for the year to end December 2002 fell by nearly 2 million.

Eontec, which provides software and IT services to institutions such as Bank of Ireland and Canadian Imperial Bank of Commerce, saw losses of 8.8 million, down on 2001, but still large for a firm its size.

Turnover for the year fell from 17.1m to 15.3m, according to accounts filed recently at the Companies Registration Office, which show the drop in turnover came mainly from a dip in software licence revenue, which fell to 3.4m from 5.78m.

The company said it continued to make losses into 2003, though the accounts were prepared on a going concern basis and the directors has confidence in turning the finances around.

"The group incurred further losses during the year and the board and management of the group are focussed on ensuring that the group begins to trade profitably as soon as possible," the directors said in the accounts.

The company's cash balance at year end was 10m, down from 22m the year before, while shareholders fund also fell heavily from 13m to over 4m.

The company had retained losses of 34m at the end of 2002.

Eontec said it had made 70 staff redundant as part of a restructuring programme to trim losses and it now employs 192 people, most of whom are software engineers.

The wages and salary bill dropped to 12.3m giving an average salary of 64,000. The firm 's eight directors were paid 710,179 in salary and 44,896 in pension contributions. While losses have mounted, a turnaround could be in the offing. Last year Eontec was part of a consortium which won a contract, reported to have been worth well over $20 million, to supply software to the Commonwealth Bank of Australia.