Istel Group Ltd, which broke away from the Rover Group in June 1987 through a management-led employee buy-out, says it plans to go public to raise new money within the next 12 months as it reported a highly successful first full year as a private company. The Redditch, Worcestershire computer services company is looking for a listing because it wants to pursue an aggressive policy of acquisition but lacks the necessary cash resources. Istel saw pre-tax profits rise by over 80% to UKP8.4m on sales that rose 23% to UKP85.1m last year, with over 50% of turnover coming for the first time from customers outside the Rover Group, in financial services, the National Health Service and value-added network services. Within the Rover Group Istel implemented the first phase of the manufacturing control systems for the new Rover mid-range car, as well as signing contracts for facilities management, data networking and communications. Looking to 1992, however, the company feels that it must grow faster than it is at present to remain competitive, hence the planned public issue of shares.
