The life and pension division of the IT systems provider warned that profits could drop by more than 10 per cent because of delays in securing new business contracts which would see turnover drop for this year to below £100m from £114.6m last year.
The future role of deputy managing director Sue Summers is unclear as her post is to disappear in a restructure. A board meeting for the life and pension business was being held on Tuesday morning.
Former director of strategy and major initiatives David Power was recently appointed as managing director of life and pensions due to the retirement of previous MD David Thomas.
Packaging arm Marlborough Stirling Mortgage Services is set to close once outstanding processing is completed.
In a trading statement, the life and pension division warned that some contracts would not be made until 2005. It says: “Should this occurit would mean that turnover for 2004 would not be significantly above £100m.”
Marlborough Stirling has also signed a 10-year deal with IT firm Pandi to outsource the upkeep and installation of its own computer hardware at head office in Cheltenham and four other locations.
PR manager Charlie Musson says: “There is a life and pension board meeting that is discussing restructuring. There is no news at the moment. With The Exchange, we have been pleased with business and the take-up from firms. There has been considerable interest from IFA firms.”