As expected, the first full year results from On Demand Information Plc since its flotation on the Unlisted Securities Market last December, failed to delight as the company posted a UKP2.6m loss, UKP1.2m last time, on turnover up 75.4% to UKP5.2m. The electronic publishing firm spun off from marketing company Poulter Communications Plc at the time of its flotation and this necessitated construction of a complete management infrastructure, increasing staff numbers to 197 from 97 until the end of October 1994. On Demand is currently testing a system with the Employment Services Agency that seeks to replace the paper documents that need to be amended every two weeks – the national pastime of ‘signing on’. At the moment 12 branches are trying it out, to be extended gradually to all 1,400 branches and other public sector organisations. On Demand has also signed memoranda of understanding with British Telecommunications Plc, Hewlett-Packard’s personal computer division and Tandem Computers Inc, but remains coy about the new service saying only that it will be launched in 1995 and describing it as a broadly-based commercial opportunity. Of the company’s current services, the medical service now boasts more than 1,100 medical practices, up 300 in the last six months, reaching 2.5m patients per month. The service aimed at the construction market has been deflated because of the severe depression in the industry. On Demand can now see clear signs of recovery and coupled with new information sources, is confident of better returns. The prototype service of Company Annual Reports in colour has found it needs to offer a much wider service and is hence being revised and is expected to be launched in 1995. Since the results On Demand has launched Advantage, aimed at training service providers and offering a cheaper alternative to printed brochures, mailshots and videos, that are expensive and inefficient to maintain. The passing on of training information is also being targeted at the retail sector, particularly electrical, where model changes are frequent and staff turnover high. On Demand’s woes were compounded by an exceptional write-off of UKP457,000 against the decline in value of British Government gilt-edged stock purchased as a short term deployment of UKP9.0m from the flotation pending their investment in the business operations, and it is now seeking compensation from its advisors. Remember, the value of your investments can go down as well as up!
