ITNET interim results 'marred'
ITNET's interim results have been 'marred' by the loss of its £83m contract with the Cabinet Office earlier this year.
The IT consulting firm posted an operating loss of £16.8m compared to a profit of £8.6m a year earlier, however it made an adjusted operating profit of £8m, a 7% increase from £7.5m.
‘The board will take all steps to recover compensation for the loss of the Cabinet Office contract without good cause to terminate our £83m contract signed in July 2003,’ said Bridget Blow, chief executive of ITNET.
‘The ending of this contract had no visible impact on the hard-earned reputation of ITNET. In the first half of 2004, we have won orders from new and existing customers in the public sector worth over £44m.’
Blow added that ‘government initiatives continue to provide new opportunities for ITNET’.
When the deal was signed in July 2003, sister publication Computing revealed that the other two shortlisted bidders had dropped out of the running for the deal because they felt the government’s contractual conditions, particularly with respect to liability for project failure, were unworkable.
The company also announced extensions to its deals with Cadbury Schweppes, Birmingham City Council and Colchester Borough Council, plus a new contract with the London Borough of Southwark.