Patsystems' Jones survives no-confidence vote

The results of patsystems' extraordinary general meeting (EGM) held yesterday could not have produced better results from the perspective of the London-based independent software vendor’s current management team.

All four resolutions, including the removal of chief executive David Jones and Stewart Douglas-Mann as company directors, and the appointment of Gary Brecka and Joe Solari as their respective replacements, were voted down by shareholders.

“We can now clear away all the debris resulting from the EGM and really get stuck in,” said Jones who was noticeably buoyed by the outcome. “We expect to announce two new contracts in the next month, but the timeframe will depend upon how quickly the lawyers will be able to complete the paperwork," he added.

Since he replaced Jacques de Cock at the helm in October last year, Jones has restructured the firm substantially. He has removed surplus staff and renegotiated the majority of the firm's existing exchange connectivity contracts. Jones also signed up two new Chicago-based clients, Cargill Investor Services and Spike Trading.

But Jones’ attempt to steer patsystems towards profitability was not welcomed by about 20% of shareholders, resulting in an attempt to remove him by way of requisitioning an EGM under section 368 of the 1985 Companies Act.

“The EGM has taken a significant amount of time for the full management team, including myself,” said Jones. “We can now concentrate on the next stage of developing the business, which entails continuing the delivery of good quality contracts, but also to move forward with our longer term development plans,” he said.

Jones was candid about the challenges facing patsystems and other independent software vendors in an industry primed for change. "A lot of restructuring will take place, and patsystems, if it’s well managed and well directed, is in a very strong position to capitalise on that, and could end up as one of the forces that shapes the industry," said Jones.