UK - Scheme administration software specialist Profund Systems has called in business recovery experts.
But the 20-year-old firm insists there is no cause for concern and dismissed industry speculation that it was set to put itself into voluntary receivership because its venture capitalist owner, Kleinwort Capital, would not provide future funding.
Profund – the UK’s largest scheme admin software provider – said: “We are not in receivership and we are not in liquidation. We need fresh investment to take the business forward and at the moment the management team is talking to various organisations about raising finance.
“It is nothing more than that.”
Profund, which provides services to more than 54% of pension schemes and 74 third-party administrators – has called in partners from BDO Stoy Hayward’s business recovery services department.
A spokeswoman told PP: “Directors from Profund Systems are in discussions with our partners to advise them on opportunities for the restructuring of the business.”
Profund’s software systems are used by more than 300 leading schemes – including Rolls Royce, Rexam and Smiths Group – and scheme administrators including Aon Consulting and Hewitt Bacon & Woodrow.
Mercer Human Resource Consulting signed an £8m contract with the firm in September for its oPen administration software, as well as a partnership agreement to develop “enhanced features” of the product.
And Watson Wyatt head of administration consulting Allan Course warned:
“If Profund goes under, its systems will not be able to cope with the tax simplification changes that come into force in April 2006.
“Pensions administration companies need to take account of new legislation as they would have to build a new model to deal with that.”
Profund was bought by Kleinwort Capital in 2000 for £20m.
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