The Company has recently been affected by the deferral of contracts in the
markets in which it operates, both in the US and in the UK.
A significant contract in the US, where the Company had been successfully
developing a stronger services based activity for clients with an internet
bias, was delayed in the late autumn, but the Board believed at the time that
the UK activities would compensate for this. The Board cannot at this stage
determine whether this contract will be reinstated.
Demand in the UK has remained at reasonable levels despite a poor market
background. However, as the Company has continued to develop more
sophisticated and value-add services, the potential contract values in which
it is involved have risen significantly and now comprise of a mixture of a
high services content for the development of applications, substantial sales
of third party software and maintenance revenues.The Company has been working
closely with partners on major contract negotiations that were scheduled to be
completed before the financial year end and which would have contributed
substantially to the performance in 2000 through the sale of the licences and
provided significant services revenues for 2001. Regrettably, contract
negotiations were not concluded before the financial year end and, atthis
point in time, the Board is unable to determine what the outcome of further
negotiations will be.
The effect on the Company's profit before tax for the period to 31 December
2000 will be significant. The Board anticipates that profit before tax for the
second half of the year will be broadly similar to that reported for the first
six months, and will update shareholders on the prospects for 2001 in due
course.
First Israel Fund, (The stock quotes
First Israel Fund, (The stock charts
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