Technology firms fear they could suffer from the impact of the war with Iraq for up to a year after the military phase ends, according to a report today.

The unpredictable nature of war was given as a key factor influencing business growth in a survey of 171 firms.

Two-thirds of technology companies polled by business advisers Grant Thornton said the impact of the war on their business would be negative.

Rick Goold, managing director of Airport Information Systems, which provides software for the airport industry, said: "The travel industry is suffering under the impact of war and any technology companies associated with the sector will clearly feel a knock-on effect. Our business is likely to remain in a state of uncertainty."