Canadian software supplier Geac claims the System 21 application suite it bought in April has become a successful part of its enterprise resource planning (ERP)-centric business plan.

System 21 was developed by JBA, once the UK's largest independent software house.

But major losses forced its sale to Geac in 1999 for £92m. The company laid off 150 staff last month and there have been persistent rumours of a sell-off.

But in a written statement to Computing, Geac System 21 marketing director Alistair Middleton insisted the product was performing well.

"Geac has stated on numerous occasions that it intends to be more focused, and has singled out ERP as a pillar of its more focused direction. That includes System 21," he said.

"This new approach is strongly reflected in the product and business plans that we have published for System 21. These are receiving an increasingly positive reception from our customers," he said.

Some 700 UK companies use the application, including mobile phone network One2One and domestic appliance maker Dyson.

Nick Williams, chairman of the System 21 user group, says his members have been reassured by Geac's UK management team that the product has a strong future.

"We hope the team will be given time to fulfil its plans. You never know what a new buyer would do with the business," he said.

Middleton blamed the job losses on fewer companies buying ERP systems, but said the company would concentrate on looking after its existing users.