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ITNet shares fall on lost e-gov contract

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Jun 30, 2004

Shares in the IT software and services firm ITNet dropped by more than 36% yesterday as a result of the loss of an £83m government contract. The company had been chosen by the Cabinet Office in an effort to get UK e-government online.

The five year long contract was in its eleventh month, with the Cabinet Office cancelling the agreement due to a breach of contract, citing that Itnet had fallen behind its schedule and was likely to go well over budget. The Cabinet Office added that months of negotiations to get the programme back on track had failed.

"www.itnetplc.com ":http://www.itnetplc.com

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