Newbury, Berkshire-based Enterprise Computer Holdings Plc, the mainframe services and personal computer products distribution company that used to trade as Systems Reliability Plc (CI No 1,678), has recovered from the UKP4.8m pre-tax loss for the first six months of what would have been its financial year to December 31 – the year-end now having been changed to March 31. A UKP1.7m pre-tax profit was recorded for the second six months, though this was down 31% on the same period last year; revenues were also down, by 29% at UKP62.5m. The name Enterprise Computer Holdings was adopted last June, after Systems Reliability’s communications and maintenance divisions were let go in management buy-outs, for a total UKP12m (CI No 1,678). Enterprise retains a 25% shareholding in the buyout company, which has been renamed SRH Ltd. Enterprise’s pre-tax profit figure above includes the group’s share of this associated company’s losses, which amounted to UKP316,000. SRH also made profits on the sale of businesses and the group’s share of these profits – some UKP325,000 – is included as an extraordinary item in the net profit (opposite). Enterprise Computer Holdings now comprises two divisions – Enterprise Computer Services, a predominantly IBM Corp but now also Digital Equipment Corp mainframe services business; and 75%-owned Integrated Services, the personal computer and networking business. The latter was born when Systems Reliability as-was closed down the South East Computers arm of its personal computer business – shedding 40 jobs – and sold off Corporate Computers. Michael Kiansar, formerly a Systems Reliability sales director, owns the remaining 25% of Integrated Services, whose biggest sub-division – Systems International – still sells some personal computer hardware, but focuses mainly on networking products. Mainframe activity The mainframe activity, which dominates Enterprise Holdings’ revenues (Integrated Services turning over only UKP15m), is still mainly in the second-user market place, although the company is distancing itself from doing business through leasing companies – now two thirds of business is done directly with end users, Daimler-Benz AG being Enterprise’s biggest customer. Enterprise took on 22 new sales people during the period to cope with this new policy. It was the seasonal nature of the mainframe business that persuaded Enterprise to change its year-end to March, since the company was making most of its money around December and January. DEC hardware accounts for only around UKP6m of the annual mainframe revenues, but chairman Rob Evans says that this business is growing quite quickly and should account for UKP10m in the current year. The UKP4.8m loss that Enterprise reported for the previous six months, according to the chairman, was made up of the loss associated with the communications and maintenance division, plus a UKP4m writedown of mainframe services stock, and a provision for a $1.25m legal claim against Federal Express which allegedly mislaid some documents and lost Enterprise money on a deal to resell a US company’s large mainframe to a company in Germany. New offices, on the mainframe side, have now been set up in the US and in France. And Enterprise is currently in the process of getting a data centre up and running in Seltham, near Heathrow, Middlesex, at existing Enterprise premises, which the company acquired several years ago with a company called Chase International. The group is investing a total UKP500,000 in converting the place into an IBM and DEC mainframe-based facilities management and disaster recovery centre which will employ 50 new staff. Evans says the group’s immediate strategy is to grow organically and to lift its corporate profile, especially now that the name has changed. The group has some UKP1.5m cash today, compared with UKP17m net debts a year ago. Its share price is around 25 pence at the moment, compared with a peak of UKP1.55 in its hey-day 18 months ago. Enterprise employs a total of 200 staff worldwide, a plunge down from 1,200 this time last year. – Sue Norris
