Unpaid bill leaves Objects short

BANKING software group Financial Objects has warned investors that its 2001 profit would be slashed by an £850,000 provision in relation to goods for which it was unlikely to be paid.

It said that the undisclosed customer, which is believed to be a European online bank, was suffering 'liquidity problems' although it did not rule out recovering at least some of the debt. Financial Objects' shares fell 9p to 74p on the news. The stock was trading at 782p at the peak of the dotcom boom in early 2000, valuing the company at £300m.

The company also said that 2001 operating profit, calculated before the provision, would be in line with market expectations. The consensus forecast is about £2.3m. But revenues will be slightly below the £18.4m recorded previously.