City software house AFA Systems is reporting a sharp fall-off in revenues and an operating loss of £2.4 million for the year ending December 2002.
In its annual results statement, the vendor blames "tough market conditions and resulting lack of new product sales" in 2002 for a drop in turnover to £6 million (2001: £8.1m). The £2.4 million operating loss compares with a gain of £0.5 million in the corresponding year earlier period. Group losses before tax hit £10.6 million (2001: £14.6m) after exceptional items and goodwill amortisation of £8.3 million (2001: £14.2m).
Mike Hart, chairman and chief executive, says the company aims to eliminate operating loss in the current year by reducing costs and increasing recurring revenues from the installed customer base.
London Bridge Software acquired 8.2% of AFA as part of a placing in January 2003 to raise £2 million. The fund raising was accompanied by a move of AFA's entire issued share capital from the official list to AIM.