P Cryne

Steve S · Jun 23, 2006

His personal money-box seems to have kept us afloat since he became involved with the club. His quoted wealth comes primarily from his holdings in iSOFT. Given that the share price of that company (they are the principal company involved in the NHS computer mess) has collapsed from over a fiver less than a year ago to as low as 60p, is it any wonder that the club are being cautious when it comes to signing new players? We might just have to go with what we have, maybe supplemented by the odd loan signing or free transfer.

SuperTyke · Jun 23, 2006

two points

i am under the impression that Patrick cryne has only loaned us money in the past rather than given it us, and also I believe that he no longer owns shares in isoft, or at least not as many.

paul.d · Jun 23, 2006

Steve-you may have missed this-PC got out in time !!

The Sunday Times - Business

 

 

 

The Sunday Times June 18, 2006





Founder lives the high life as iSoft slumps

Patrick Cryne’s big investments in golf and football clubs sits uneasily with his software firm’s huge losses, writes Richard Fletcher

 

 

PATRICK CRYNE should be celebrating — three weeks ago Barnsley FC won promotion to the Championship after a thrilling penalty shoot-out at the Millennium Stadium in <city w:st="on"><place w:st="on">Cardiff</place></city>.

Cryne is not only a life-long <place w:st="on">Barnsley</place> fan, he is also a leading investor in the club. He has a 50% stake in the ground and its training facility.



 

 

He made his money by founding iSoft, which he built up over a decade into one of <country-region w:st="on"><place w:st="on">Britain</place></country-region>’s top software firms, worth more than £1 billion at its peak. But less than a year after he stepped down as chairman, the company is in chaos. iSoft — which specialises in software for the healthcare sector — has had to restate its accounts and has issued three profit warnings in just a few months. Over the past 12 months its share price has plunged 85.85%, destroying £841m of shareholder value. Last week its chief executive, Tim Whiston, resigned.



The collapse has prompted many to re-evaluate Cryne’s legacy and raise questions about his disposal of £13m worth of shares in June 2004.



In the days leading up to the sale of the shares, iSoft’s share price soared after the company revealed better-than-expected results and upgraded its profit forecasts for a crucial NHS deal — the National Programme for IT — which it claimed would generate £500m of revenue.



But under the firm’s new accounting rules the company would have reported a loss rather than £36.8m of pre-tax profit. As for the National Programme, iSoft admits its £500m forecast was widely optimistic and that the contract will generate only £300m of revenue.



Cryne, the son of a steel erector, was born and bred in <place w:st="on">Barnsley</place> and educated at his local comprehensive. He worked his way through the sixth form, earning money by delivering coal, before going to university.



“I was in academia, lecturing. But my interest was always in how technology can helpbusiness operate more efficiently.



I began consulting work with business which led me to take up accountancy,” said Cryne in a rare interview in 2003.



He joined Peat Marwick McLintock in 1984. The firm later merged with KPMG and by the early 1990s Cryne was working for the group’s management-consulting arm, running its healthcare IT division.



At KPMG Cryne met Roger Dickens, one of its most senior partners who had narrowly missed out on the top job. Cryne and Dickens, alongside Steve Graham, who remains iSoft’s group commercial director, set up iSoft within KPMG in 1994. Five years later the business was bought out and in 2000 it was floated.



Sir Digby Jones, the former director-general of the CBI who was a non-executive director of iSoft until July 2005, describes Cryne as a “true Yorkshireman”.



“He had foresight. He was one of the industry’s great visionaries,” said Jones.



But alongside Dickens, who died earlier this year, Cryne dominated the firm, according to former senior executives.



“Cryne was steadfast. The only person who would take him on was Dickens,” said one. Whiston — who eventually took over from Cryne — lived in his shadow, he added.



Another former senior iSoft executive said: “It was never going to work having Cryne as chairman and Whiston as chief executive.”



Others argue that Cryne ran the business as a personal fiefdom: the company reportedly spent £400,000 sponsoring his beloved <place w:st="on">Barnsley</place> — a deal that is believed to have included a box at every home game as well as shirt advertising. Cryne rarely misses a game, commuting from his home in Charlesworth, Derbyshire, where he has lived for more than 18 years.



On the edge of the Peak District, the picturesque rural village is less than a 30-minute drive from iSoft’s <city w:st="on"><place w:st="on">Manchester</place></city> headquarters. Cryne boasts that on a clear day he can see the <place w:st="on">Yorkshire</place> border.



Despite all his success and wealth, Cryne claims to have kept his “feet on the ground” — even though he owns homes in <country-region w:st="on">Portugal</country-region>, <country-region w:st="on">Ireland</country-region> and <country-region w:st="on"><place w:st="on">Scotland</place></country-region>. All of them are close to golf courses, a game he enjoys playing with his wife and son.



Alongside his investment in Barnsley FC, Cryne has also bought a 50% stake in the Vale Royal Abbey golf club in <city w:st="on"><place w:st="on">Cheshire</place></city>. Steve Graham, a regular at the club, is a fellow investor.



The pair are reported to have paid more than £3m for the Vale Royal Abbey, which charges members more than £1,000 a year in fees. The course is laid out around a 16th century Grade II-listed manor house that was once the stately home of Lord Delamere and is considered to be one of the best in the area.



Cryne is also a keen art collector — and is said to own one of the largest private collections of Lowry paintings in <country-region w:st="on"><place w:st="on">Britain</place></country-region>.



Most of his wealth has come from iSoft. The company was floated on the stock market at the height of the dotcom boom and its shares soared. Having sold £4.4m worth of stock when the company floated, Cryne went on to sell another £40m of shares over five years (see table below).



His foresight proved impeccable — by the time the company’s share price collapsed he had reduced his holding from 17.2% to less than 3%.



But the sale of nearly £13m worth of shares in 2004 proved controversial. At least one institutional shareholder claims to have asked chairman John Weston to investigate the disposal.



“The shares soared on up-beat results and forecasts. But we are now told that iSoft has in fact never made a penny of profit,” said one shareholder.



So where now for iSoft? Weston, a non-executive chairman, has taken over as interim chief executive until a replacement for Whiston can be found. It could be a busy few months for the 54-year-old former chief executive of BAE Systems. He will be joining Gavin James, finance director, to lead negotiations with the firm’s bankers — Lloyds TSB, Royal Bank of <country-region w:st="on"><place w:st="on">Scotland</place></country-region>, Barclays and HSBC — to ensure that the group does not breach its covenants.



Weston’s appointment also comes amid mounting speculation that iSoft could be replaced as a subcontractor on at least one of its high-profile NHS contracts by Cerner, a rival comany. He will also have to deal with the fall-out from the damning audit of the NHS project by the National Audit Office.



Investors in iSoft must hope that Weston can find the time for all this. He has several other non-executive jobs. Weston is chairman of Learndirect, a network of online learning centres, and three other companies, including Spirent, which issued a profit warning last week.



Kevin Ashton, an analyst at the brokerage firm Bridgewell, believes iSoft is “wending its way to recovery”, but warns that in the short term uncertainty will continue to hit the share price.



One of Weston’s key tasks will be to restore relations with investors and the City — much needed after the April debacle, when iSoft shares fell almost 50% in a few frantic minutes of trading after rumours swept the market that it had gone bust.



After a statement from the firm, insisting that it was “business as usual”, the shares bounced back — although they still ended the day down 11%.



Weston faces a huge challenge. Both Cryne and Whiston had an uneasy relationship with the City. But he could start by winning over his own advisers.



Morgan Stanley, one of iSoft’s advisers, has declined to publish forecasts since the announcement 10 days ago that iSoft was restating its accounts. “We don’t feel we have enough visibility to offer a recommendation,” was the damning verdict of the broker.

Guest · Jun 23, 2006

RE: Steve-you may have missed this-PC got out in time !!

ff

There's so much you could say about that

JLWBigLil · Jun 23, 2006

Don't panic

I'm sure we will sign some good players.

I think Mr Cryne will lend the club money if it is necessary but I don't think we as fans should expect him to just give his money to us.

Glad to see you back on here.

SuperTyke · Jun 23, 2006

And on the plus side

Although we haven't signed anybody yet, it has also been noted that no young goalkeepers have left the club either have they laura? *ahem* laurascott

Jay · Jun 23, 2006

I wouldn't if I were you

Steve S · Jun 23, 2006

No I did'nt see that

and obviously he seems to have jumped ship in time (wonder how he knew?) but even then it has to be put into context. The last set of iSOFT accounts that I saw revealed that his personal holdings, given the share price prevailing, would have valued his shares at £80m+. If he has walked away with £13m then good luck to him, but his ability to fund the club is obviously severely curtailed.

Young Nudger · Jun 23, 2006

Pat Crynes involvement in isoft in a nutshell

I actually went out and bought the Sunday Times when I heard that their was a peice about Pat Cryne in there
The main point as far as Barnsley fans are concerned is this
Pat Cryne sold most of his shares in isoft just before the price of the shares crashed
He raised £40 million from the sale of those shares
He now owns only about 3% of isoft shares
So what ever happens to isoft will not effect Barnsley FC

Guest · Jun 23, 2006

RE: I wouldn't if I were you

me mam's post box is sealed

paul.d · Jun 23, 2006

amongst all the doom mongering I forgot to ask "How are you keeping?well enough I hope NT

JLWBigLil · Jun 23, 2006

I don't think Scott will leave

at least not this season.

I think (hope) that Nick will sign a new contract but I think the club will have to allow Scott to play more games to give him more experience so he can keep his place in the England set up and so if other clubs come back for him BFC can get more money.

P Cryne

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