Lynx Holdings Plc’s core businesses delivered strong organic growth for the Oxford-based group, enabling interim pre-tax profits to jump by 61% to ú741,000 for the six months to March 31, from turnover up 74% at ú12.6m. The computer software and systems division’s financial service business, including Chess Valley Computers, has won more contracts in the mortgage and secured lending markets, including one from the Royal Bank of Scotland Plc in April, worth more than ú2m. The automotive business, Signal, has been busy supplying communications systems between manufacturers and dealers. The smaller communications business was affected by delays in orders, but recently won contracts from the Royal Automobile Club and two police authorities with a combined value of more than ú2.7m. The computer services division, which like software and systems brings in around 40% of the turnover, has had a good first half, supporting mainly IBM Corp RS/6000 systems for which it is also a channel manager. This latter activity will have more impact on operating profits in the future than at present, according to the company. The leisure division Townart Group, now bereft of its bouncy castles, is no longer core to the group. This is contrary to managing director Richard Last’s original goal of expansion, before he saw the earning potential in the systems and services sector, presumably. The group made no acquisitions in the half, but recently bought Heywood & Partners (Holdings) Ltd (CI No 2,631), an Altrincham, Cheshire-based computer systems, software and support company in the pensions administrations market for ú4.5m. Heywood has a ú10m contracted future income over the next five years, according to Lynx chairman Roger Pinnington. The group’s continued success will come from a mixture of organic growth in the core software, systems and services market and acquisitions in its target markets, Pinnington added. The board is recommending an interim dividend of 0.4 pence, an 11% rise on 1994.
