Scandal-hit healthcare software group iSoft said yesterday talks with potential buyers are at an advanced stage and hinted it may pull itself out of the red this year. Negotiations with its banks over long-term funding are continuing. It has used £49m of a £93m overdraft facility that runs out on November 14.

ISoft, being investigated over potentially misleading statements to the City, plays a crucial role in the upgrade of the NHS IT systems, but delays, profit warnings and alleged accounting irregularities plunged it into crisis last year.

Australian suitor IBA Healthcare hopes to conclude a deal within weeks but Cerner (also involved in the NHS contract), US healthcare firm McKesson and private equity group General Atlantic have shown interest. Isoft said talks were dragging because it needs to consult the body running the NHS contract and its partners in the programme.

It expects revenues for the year to the end of April to be at the upper end of a predicted £171m to £181m. Analysts said the update ahead of July's annual results suggested iSoft would make a small profit for the year.