Troubled software firm iSoft has announced massive losses and admitted it is in dispute with its partners.

Troubled software firm iSoft has announced massive losses and admitted it is in dispute with its partners.

The Manchester-based company, which is providing software to be installed at GP practices and hospitals, announced pre-tax losses of£344m on Friday.

Financial results revealed that new financing arrangements have been agreed with a consortium of banks, which have extended loan facilities until next November.

Auditors Deloitte refused to sign off the financial results, citing the announcement of an investigation by the Financial Services Authority into the company's accounting policy.

iSoft's software is being installed by consultancy firms Accenture and Computer Sciences Corporation, which have both accused iSoft of breaching its contract.

iSoft's review of 2005-06 admits there has been 'formal correspondence' exchanged between the company and both Accenture and CSC, and details allegations of a 'material contractual breach' by iSoft.

'The company has denied all of the disputed allegations of breach. To date, none of this correspondence has resulted in notice to terminate the contracts being given, or any formal claims being made.'

Last week the company announced it had agreed arrangements with CSC for the implementation of its software in the North West and West Midlands regional cluster of the national IT programme. The agreement is valued at up to£153m and gives CSC the right to take over management of the development team should iSoft be unable to fulfil its obligations.

And it has agreed, through CSC, to supply seven trusts in the Southern and London clusters with enhanced software.