Computer Sciences Corporation (CSC), the US supplier overseeing 60 per cent of the £12bn National Programme for NHS IT (NPfIT), says restructuring costs and errors discovered in its accounting practices were to blame for flat fourth quarter sales.

The company, which is considering a bid for troubled software supplier iSoft, says it discovered significant errors in accounting for tax liabilities between 2000 and 2006.

But CSC president Michael Laphen is bullish about the firm's prospects, saying record total awards for the coming year would increase sales by six or seven per cent in 2008.

‘Our fourth quarter results continued to display our solid operational progress in a transition year,’ he said.

Overall sales for the quarter rose four per cent to $4bn (£2bn), with revenue for the full year up 15 per cent to $14.9bn (£7.6bn), but down almost one per cent on constant currencies.

But it was forced to delay releasing the results as it sought to correct errors in its accounting of income tax liabilities, as well as a favourable adjustment in the preparation of US federal tax returns.

The results also include a four per cent adverse impact from legal expenses following an investigation of stock options.

Strong sales in the North American public sector helped drive the company, with revenue increasing almost five per cent to $1.4bn (£711m). It has also announced new contract awards worth $4.2bn (£2.2bn), taking the full year total to $16.9bn (£8.6bn).

However, European sales, which include profits from the NPfIT, have fallen one per cent in constant currency to $1.1bn (£558m).