Blick Plc has been through a period of change and is emerging strongly, insists chairman Alan Elliot. But what emerges strongly from close scrutiny of the first half figures from this UK-based time recording and communications group are worries about the direction in which it is heading. A modest 8.4% rise in net income for the first half disguises the fact that it is carrying two loss-making operations. Integrated Software Systems, which lost 678,000 in the whole of last year, has already topped that with a 702,0000 pound loss in the first half. This is a 51%-owned joint venture with hardware suppliers Amano Corp of Japan that offers a complete human resource package. It does seem a logical move to build on top of Blick’s security access system, software to give information and analysis about factors such as staff movement between departments and levels of absenteeism. But this moves them into competition with the big ERP players such as SAP and JD Edwards. The company says it expected two years of losses on the start-up of this venture that should move into the black by the end of this financial year. Orders, it insists, are flowing in both in Europe and the US. For a company of Blick’s size to move into this field is undoubtedly a gamble, the success of which will not be known for at least a year. The other problem area is radio communications where a decline in on-site pagers was not offset by sales of new products. Brave investors will be attracted by the potential of the group’s shares if the directors’ strategy pays off. And they will probably shrug off the fact that Mr Ian Scott-Gall’s quit as chief executive and a director with immediate effect on March 31. He has been replaced by of Mark Aldridge, formerly a main board director of Hays Plc.
