Shares in UK smallcap Intelligent Environments have slipped to a new year low after the company reported a doubling in operating losses for the year-ended December 2004 amid signs that the retail banking market is continuing to shy away from new Internet investments.
Year-end revenues at iE slipped 12% to £3.1 million compared to 2003 and operating losses increased by £0.2 million to £0.4 million.
Clive Richards, chairman, is cagey on future prospects: "The appetite of the major UK financial institutions to invest in new strategic Internet platforms remains cautious with most relying on tactical enhancements to legacy systems."
He says the company is experiencing a pick-up in service work from existing customers, but cautions: "Under-achievement in 2004 makes me reluctant to be too bullish for 2005."
In January, the company raised £03 million to provide further working capital after finishing the year with a cash balance of just £0.2 million.
Shares in iE lost a quarter of their value in early morning trading, shedding a penny to stand at 2.88 pence.