Alterian CEO steps down following ‘disappointing’ year

Alterian had been expected to bring in £42m to £44m in revenue, but said in a profit warning today that its takings will be around 10% less than that because one of its major clients has not renewed a licensing contract. The shortfall will have a “material impact” on profits for the year ended 31 March 2011, the firm said.

The company made £7.7m profit in 2009-10 on revenue of £38m.

The contract in question – for a bulk license to use Alterian’s software – was expected to be renewed and extended before the end of the financial year, but Alterian said that management changes at the client company caused the decision to be deferred, and that although it remains “likely” that the renewal will go ahead, Alterian can’t be certain if or when it might happen.

CEO David Eldridge (pictured), who has led Alterian since it was set up in 1997, said: “The results for the year will be disappointing, principally as a result of the deferral of a major expected contract renewal and extension. I take my responsibilities seriously and am stepping down from my role as chief executive of Alterian.”

Eldridge said the firm was well positioned to achieve success in the medium term and that he was proud of the “team and position we have built at Alterian over the past fourteen years”. He will continue to pay a role in the company’s management while it looks for a successor. Meanwhile Iain Johnston, who has been a non-executive director since the company was founded, will become deputy chairman.

Alterian will give further guidance on its full-year results in a trading statement later this month.