By Gemma Simpson, 18 October 2006 15:05
NEWS
One of the NHS IT upgrade programme's key software suppliers, iSoft, has been linked with a sale as its debts and troubles mount.
The Manchester-based company has reportedly been approached by a number of parties interested in acquiring its business.
A spokesman for iSoft told silicon.com: "The company needs to refinance its operations and, as widely reported, has secured financing with its bankers but these loans have become increasingly onerous. iSoft is currently assessing its many options."
Sarah Burnett, an analyst at Butler Group, said a potential iSoft sale would be a "firm indication that they need to sort things out quickly".
iSoft reported pre-tax losses of £343.8m in August this year and is being investigated by the Financial Services Authority after admitting that potential accounting irregularities had been found in its books.
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John Weston, chairman and acting CEO of iSoft, said in a statement the company expects a decline in revenue of between 10 and 15 per cent for 2007. However, Butler Group's Burnett said this figure is "probably a bit optimistic".
Accenture pulled out of the £12.4bn NHS IT programme last month and partly blamed iSoft over increasing delays in the delivery of clinical record software.
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