The problems affecting insurers in the wake of the September 11 terrorist attacks in the US will worsen conditions for IT suppliers already struggling against falling sales.
Group finance director of insurance software company Sirius, Richard Bowser, admitted the firm could be hit by the difficulties affecting the insurance industry following the attacks.
He said: “Current market conditions are difficult and there is clear evidence of the larger IT buying companies procrastinating on buying decisions. The effects of September 11 won't help the matter.
“There's a sector recession in terms of IT buying at the moment and all the pundits are saying there will be a slowdown in IT spend.”
Sirius customers Marsh and Aon both had offices destroyed in the World Trade Centre catastrophe. Mr Bowser said: “So far the indications are that it won't affect their buying cycle.”
Despite looming difficulties, the company announced interim results today which showed it generated a 12.3% rise in turnover in the six months to June 30.
Its operating profit soared by 31.7% compared to the same period from last year. The figure increased to £561,000 from £426,000 last year, before the depreciation of intangible assets, which amounted to £436,000 in the period.
Shareholders will receive 1p per share in an interim dividend, a level unchanged from last year.
Sirius' stock is included in the techMark index of the London Stock Exchange.
