NMT in urgent cash hunt

New Millennium Technologies (NMT) is urgently seeking fresh investment after its main investor said it will cut off funding.

Highway Insurance Holdings announced last week it would honour its contract with the technology company until 31 December 2002 but would invest "no more money next year".

Highway managing director Andrew Gibson confirmed it had invested £2m in NMT this year. He said Highway would continue to have an 18% share of the company. NMT owns broker software system Premier Plus.

In NMT's annual returns for the year ended 31 December 2001, the company recorded a loss of £2.11m against a turnover of £1.59m. And staff costs were £1.56m.

Analysts predict that the company will make a similar loss this year and its revenues from its broking work and Highway business will just break the £1m barrier.

NMT Premier Plus managing director Barry Singh confirmed that Highway was its main investor. But he would not comment on the predicted figures.

He said NMT was currently "going through a process of talking to other investors". He said: "We are in advanced talks and a number of people are talking about a sole investment or a consortium."

Singh said he was expecting an announcement in the "next two to three weeks". He said there were no planned job cuts and all staff would be paid.

Gibson said: "The decision was largely made because we are an insurance company and not a technology business. NMT started as a market initiative and we ended up carrying the burden."