A pre-tax loss of £4.29 million was reported today by Alterian, the Bristol-based marketing software group. This follows two profit warnings last month and the resignation of chief executive David Eldridge.
Alterian made an operating loss of £4.4m on a drop in annual revenue from £38m to £37m. Last month’s crisis resulted from the decision of a major partner not to sign an agreement for a large licence renewal and extension which had been included in the company’s revenue and cash flow plans.
Today, in its preliminary statement for the year to March 31, the group blamed its “poor results” on increased costs “aimed at expanding the business” that were not matched by growth in revenues “which were substantially below plan”.
Chairman Keith Hamill said that, following David Eldridge’s departure, action had been taken to stabilise the business, reorganise and simplify the management structure, strengthen management controls and control costs. A new chief executive is being recruited and the board will be restructured.
Iain Johnston was appointed deputy chairman in April and is leading the executive management of the business on an interim basis while the new chief executive is recruited. He has been an investor in and non-executive director since Alterian’s foundation “and has considerable experience of leading, guiding and managing businesses, including GB group plc and InternetQ plc in the technology sector”.
Looking ahead, Alterian’s strategy is to broaden its product range to generate further revenue through continued investment in research and development and to seek appropriate, selective acquisitions of technology companies or intellectual property in high growth areas.
The company previously sold its products mainly in the UK and USA. Sales have now been expanded to include Europe, Asia Pacific and parts of South America.
Mr Hamill said: “I continue to believe that the company has good and competitive products addressing growing markets and some very able people. If well managed, it will get back on track.”
He has agreed to stay on until a new chief executive has been appointed and his own successor has been found.
