UK CRM vendor Portrait Software has warned that its annual revenues are likely to be 20 per cent lower than expected due to an ongoing internal reorganisation.
The Henley-on-Thames-based company now expects to post full year turnover of about £11.3 million on 31 March, well below the anticipated £12.1 million, because the move to reduce its dependence on low margin services in favour of more profitable software sales is taking longer than previously thought.
Sales for the second half of this fiscal year are expected to have increased by 35 per cent to about £6.5 million, with software license and support fees accounting for 68 per cent of the total compared with 58 per cent in the first half of the year.
The shake-up was initiated by chairman, John O’Connell, who joined the supplier in June 2005, bringing with him Robin Martin as chief operating officer. O’Connell used to be chief executive of Staffware, which was acquired by Tibco in 2001 and a total of seven former StaffWare executives have now joined the company.
O’Connell has also appointed a new software management team over the last few months, but plans to introduce changes to sales activities over the next couple. However, he believes that Portrait is well positioned to improve revenues and profitability from the next financial year onwards.