Receiver appointed at Cognotec – 40 jobs threatened

29 Jan 2010

The financial software company launched by Brian MacCaba Cognotec has appointed a receiver and it is understood that 40 jobs in Ireland may go if the company fails to find a buyer.

The maker of foreign exchange system software has substantial contracts in place but is experiencing cash flow difficulties.

Barclays Bank is understood to have appointed Kieran Wallace of KPMG as receiver to Cognotec Holdings, who is hoping to sell the business as a going concern.

Cognotec recently underwent a restructuring and has reduced its staff numbers.

The company employs 40 people in Ireland and a further 25 overseas.

At its height, Cognotec employed 140 people in Dublin, London, New York, Tokyo and Singapore and had revenues of US$40 million.

However, new product development led to losses of US$48 million. Despite this, in the past year the company had reduced its losses to less than US$10 million and turnover reached US$18.5 million.

The company is targeting the Top 100 banks in the world and the average contract with a top bank could be worth more than US$20 million.

However, recently the company’s biggest customer cancelled a project.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years