Delphi Group Plc, the London, UK-based computer and telecommunications recruitment group formerly known as Computer people, has enjoyed a buoyant half. Following extensive restructuring in 1994, its diet of recruitment and training in the UK, US and continental Europe has served it well. And the company has made good its intention to focus on the US as a means of growth (CI No 2,876), with the announcement of its second acquisition of the year via its Computer People Inc US subsidiary. The City appeared pleased with the deal, and by midday yesterday shares were up five points to 580 pence. Chairman Tony Reeves said the addition of systems integration and professional services firm Alpine Computer Systems Inc will enable Delphi to increase significantly its range of services as well as geographical presence. Based near Boston, Alpine has offices in Hartford, Connecticut; Woodbridge, Virginia; and New York, and is expected to generate a revenue in the region of $25m and more than $80 0,000 profit this year. A total of $24.5m will be paid, $8m in cash and the remainder in new ordinary shares. For the six months to June 30 Delphi, which is really a holding company with all the subsidiaries trading under their own names, turned in pre-tax profits up 15% to UKP5.7m. Revenue was up 20% at UKP100.2m. Businesses in the UK now account for 72% of the group’s revenues, which increased 22% to UKP72.2m. Operating profits jumped 43% to UKP5.9m. Reeves attributed the increases during the half to organic growth in its information technology contracting and placement business. A joint venture was entered with two other recruitment companies and a software development company in July to develop and promote a UK-based on-line Appointments Section. The US continued to grow throughout the period, partly due to organic growth and to the acquisition of the Los Angeles branch of Automated Concepts Inc in March 1995. The region accounts for 20% of the group’s business, and produced an increase of 17% in revenue to UKP19.7m. Operating profits fell by 7% in the US due to the increased cost of resourcing and investments made to grow the group, said Reeve. In May Delphi acquired the Houston division of Netserv Inc for an initial $40 0,000 and a further consideration of up to $2.1m. The company provides consultation, design, installation and support services to clients that require local or wide area networks. The European business, with offices in France, Holland and Switzerland, have shown strong growth. Operating profits climbed 50% during the half to UKP300,000 and revenues were up 9% at UKP8.2m. Delphi said that it remains optimistic about the full year. The market for all of its services remains good, it and Reeves said the group now has the critical mass to achieve rapid growth in the US market. Gearing had been reduced to 57% at the half-way stage from 80% at the year-end, and the board has recommended an interim dividend of two pence, up by 33% on last time.
