Small business accounting software MYOB warned of uncertainty in its sale targets for the first half of this year but is still confident of making a profit.

Speaking to reporters yesterday after the annual general meeting, MYOB chief executive Craig Winkler said revenues were higher in all market areas, with particularly good results in Australia, Asia and New Zealand which registered 19,000 more customers in the March quarter.

But Mr Winkler said group revenues were unlikely to make the 15per cent growth forecast in March when he released the annual result but gross margins were high enough to keep the expected $6million to $7million profit on target.

MYOB booked a net profit of $5.3 million in 2001 from revenues of $79.3 million - but the numbers represented a huge fall from the pre-GST highs of 2000 when the group made $19.9 million net profit on revenue of $122.3 million.

The gloss came off the pre-GST spike when its new tax package software was undermined by many late changes to the legislation.

Asked if MYOB had lost customers through the tax software debacle, particularly in relation to accounting franchise H&R Block, Mr Winkler said some customers said last year they no longer wanted to use MYOB products but it would know the figures after renewals and upgrades this year start coming in May and June. "We expect to have lost some
customers."

He said the H&R Block franchise had negotiated a bulk deal and MYOB would not lose much money.

US-based director Chris Lee was quizzed on his sale of 4 million shares during the week.

Mr Winkler said investment house Hunter Hall bought the shares from Mr Lee and fellow director Brett Shofer, who sold 18million shares, and raised its stake to 10per cent.

MYOB shares closed unchanged yesterday at 75¢