Software firm shares plunge 23%

Shares in the Anglo-Dutch software firm CMG have plunged by more than one fifth.

The company has warned of deteriorating trading conditions in the UK, and is the latest firm to blame the terrorist attacks for hard times.

CMG will now slash 10% of its workforce in the UK and Ireland - 470 staff - as part of its cost cutting measures, aimed at saving £20m.

"It has been very noticeable since 11 September that projects were being cancelled," said chairman Cor Stutterheim.

"Before that, there was slower order taking."

Gloomy news day

CMG says there has seen a significant downturn in the insurance, financial services and transport sectors, as well as a further softening of the telecoms consultancy business.

"We are not immune to market forces and expect this challenging environment to persist through the first half of next year," Mr Stutterheim said.

CMG's main customers include ABN Amro Bank, Dutch telecoms company KPN and electronics firm Philips.

Shares in CMG closed on Thursday at 218p, a far cry from last year's highs of almost £18.

CMG's announcement came on the same day that German software giant SAP cut its full year sales outlook.

The gloomy news combined to lead the whole sector lower.