ISOFT has come a long way from its foundations as a small healthcare IT unit within the huge KPMG accountancy firm.

Realising the potential of the business, and the possible limitations of being within a larger firm, Patrick Cryne, the unit’s founder, went on to lead a management buyout with two colleagues in 1998. Two years later iSoft floated on the London Stock Exchange valued at £120 million.

Over the next five years, iSoft went on to merge with Torex, its largest rival, won work on three of the NHS’s five regional contracts and increased its stock market value to £1 billion. Its founders grew rich on its success in winning contracts that would allow patients to book appointments over the internet and allow any doctor or nurse to check a patient’s complete medical record.

Things began to come unstuck at the start of this year, when iSoft revealed delays to the NHS programme.

The company agreed to satisfy early stages of the NHS contracts with existing software. It would simultaneously develop its Lorenzo software to satisfy their later stages.

However, it found that the needs of GPs, hospitals and health professionals differed enormously. It was unable to agree with Accenture and CSC, the two IT groups managing the deployment, on whether the software it was providing was meeting the needs of those working in the NHS.

The company was forced to supplement its own software with new functions, delaying development of Lorenzo by up to two years and contributing to similar delays in the delivery of new services to patients.

The revelation that revenues were being booked too early has helped to wipe out 90 per cent of iSoft’s stock market value since the start of the year.

Eight years on, this former stock market star is struggling to regain its shine.

Times Recommends

• Tories’ green bank to revolutionise power policy
• UK car industry receives £2.6bn injection
• Pru chief turns down seat on board of bank