A cloud of uncertainty hangs over JBA Group, the UK-based ERP vendor, as the shares eased back 0.7% to 142.5 pence on Friday in heavy trading. Rumors of job losses in its UK operation added to the gloom over an ERP sector that analysts feel is ripe for consolidation. JBA says it is in the process of trimming back its worldwide workforce from 3,000 to 2,700. This follows its decision, announced in March (CI No 3,627) to return to its roots as a mid-market specialist and stop trying to compete in the generic ERP market. It follows from this, say company officials, that it does not need the same scale of sales and marketing effort, especially at a time when the overall market is depressed.
But JBA insists that activity in the Far East is now picking up and it is intensifying its sales efforts there. The company suffered a setback this month when logistics company Transport Development Group dumped JBA for an 850,000 pound ($1.3m) system from JD Edwards for its European operation. In its results for the year to December 31, JBA reported net losses of 7.6m pounds ($12.2m) on revenue that rose 31.4% to 291.5m pounds ($472m) (CI No 3,631).
