Farnham, UK-based Diagonal reported a net loss of 5.65m pounds ($9.04m) for the 12 months ended December 31, compared to a net profit of 394,000 pounds ($630,400) in 2001, on revenue that fell 20% to 63.6m pounds ($101.8m). At the end of the period, Diagonal had improved its cash position to 14.4m pounds ($23m) from 10.2m pounds ($16.3m) in 2001.
The largest division, Diagonal Consulting, its SAP and enterprise application integration (EAI) practice, saw revenue decline 20.5% to 48.2m pounds ($77.1m). Meanwhile, the other division, Diagonal Secure Networks, which provides security consulting and network integration services, declined 28% to 15.4m pounds ($24.6m).
At the same time, Diagonal announced it had acquired a small SAP consulting practice, Partners for Change, to bolster its flagging SAP practice, for which it paid 2.7m pounds ($4.32m) in cash. During its most recent full-year results for the period ended June 30, 2001, Partners for Change made a pre tax profit of 300,000 pounds ($480,000) on revenue of 12.4m pounds ($19.8m).
The company was set up in 1994 and has established a list of customers including Cable & Wireless for which it implemented a web-based human resources system, Bristol & West, Continental, Equitas, GlaxoWellcome, Tate, Amersham Health, Royal & SunAlliance, Standard Chartered and Bedfordshire County Council. Diagonal said the company had recently won a 6m pound ($9.6m) contract with a major client.
Commenting on the outlook, chairman Mark Samuels said: There are few signs of any improvement in market conditions and as a result the current year is likely to prove equally challenging. However, we will continue to focus on maintaining margins and robust cash generation.
Source: Computerwire
