Cash position ahead at Innovation

12th Oct 2009 07:51

Property and insurance software firm Innovation Group said its net cash position is a lot better than the market has calculated.While adjusted profit before tax in the year to 30 September 2009 are likely to be in line with market expectations net cash, at more than £10m, will be ‘substantially ahead of market expectations’, the company said.Adjusted profit before tax adds back the amortisation charge, impairment charge, a share based payments charge and exceptional costs.As mentioned in its last trading update the global economic slowdown has significantly reduced claims volumes in all the regions in which the company operates, and has contributed to the group’s US business process outsourcing (BPO) unit growing much more slowly than anticipated. This will result in a non-cash goodwill impairment charge being taken in respect of the US business.Enterprise, the company’s BPO and software as a service platform, is on budget and scheduled to go live in the UK, France and Spain before the end of 2009.