UK-based financial systems software house Marlborough Stirling has warned that full-year turnover for 2004 may come in below expectations following the collapse of talks on a new BPO deal and possible contract deferrals.
In a trading update, Marlborough Stirling says it has terminated discussions with Chesnara on the provision of outsourcing services after the two sides failed to agree terms. The group says that uncertainty in the date of closure of other life and pensions outsourcing deals means that full-year turnover will not be significantly over £100 million.
On the positive side, a new long-term outsourcing contract has been signed with a major global insurance company in relation to certain of its European operations. The 10 year contract, which involves extensive technology and process re-engineering, will generate revenue of approximately £3m in its first 12 months.
The company adds that current prospect activity is at "historically high levels and we are currently engaged in three major bid processes".