TaxPersonal TaxMid-market – New products to buck JBA’s slump

Mid-market - New products to buck JBA's slump

JBA, the mid-market enterprise resource-planning specialist, has launched a range of e-commerce and business intelligence modules for manufacturers, but disappointing results for 1998 may overshadow product innovation, writes Nick Huber.

JBA’s results for 1998 showed a #1.7m fall in pre-tax profits, although this was less steep than 1997’s #5.2m drop. Group revenues, however, rose by 31%.

The raft of products, called @ctive Enterprise Series, integrates with JBA’s main product, System 21, to automate supply chains and reduce costs. Modules released include @ctive e-commerce for business-to-business and business-to-consumer needs, and @ctive business intelligence, which measures and analyses business performance. A new credit-management product is also due in the next three months.

The launch is set against an increasingly gloomy economic backdrop for the ERP industry. Most of the main ERP vendors have seen a downturn in license sales as companies tighten their belts in the run-up to 2000.

ERP market leader SAP has already predicted its pre-tax profits for this year’s first quarter will fall significantly below 1998’s figures.

Speaking at JBA’s annual user conference this month, Ken Briddon, JBA’s new CEO was anxious to reassure users the financial problems were temporary.

‘There’s a new economic reality in the ERP industry and many vendors, including us, misjudged the growth rates,’ he said. ‘My minimum goal is to achieve a minimum growth rate of 15% return on sales’.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter