Microgen Holdings Plc has paid #1.5m for Clydesdale Bank Plc’s Glasgow-based Scottish Computer Services computer output to microfilm bureau: the bank says the business was not a core one and that it had been looking for a buyer for it for some time. Scottish Computer Services had turnover of #2.87m in the year to September 30, down from #3.12m, but moved into pre-tax profits of #35,325 last year after losses of #901,001 the previous year. As well as computer output to microfilm services, the company offers payroll processing and related services to 400 customers throughout Scotland. Microgen says it plans to integrate the microfilm business with its own similar centres in Glasgow and Edinburgh. The payroll and related services will continue to be marketed by Scottish, which will keep a close working relationship with the bank – that represents a diversification for Microgen, but the company reckons that payroll processing had an affinity with its philosophy of helping customers to increase efficiency and cut costs through the provision of specialist services – but it is clearly so small, being only part of a #2.9m business, that Microgen must now be looking to acquire similar operations to add to it. It also sees significant benefits arising from the integration of the computer output to microfilm businesses. The company paid cash from its own resources and says it got net assets worth #1m.
