Apricot Computers Plc saw pre-tax profit plummet 51% to UKP2m on turnover that climbed only 21% to top UKP56m despite the acquisition of the DDT Group and Logical Systems International. The profits have taken a knock from the widely publicised UKP1m restructuring costs (CI No 1,254), nevertheless without this exceptional cost they have dropped 27%. The company has a three-pronged fork with which to attack the information technology market: software, services and hardware. It has a software division which saw profits wilt 27% to a little over UKP1m on turnover up 20% to just over UKP8m. The company’s saving grace in this division has been the prospering sales of both its Quasar investment management system, and its Adatco insurance software. Meanwhile Logical Systems International, acquired in June, is not being allowed to fall prey to the bad habits of Apricot Financial Systems, in that its software and systems development are being sold via the company’s direct sales force, integrated with Apricot hardware – a pointer to future Apricot software activities under the aegis of deputy managing director, Mike Hart. The services division is doing well with profits up 75% to UKP2.1m on turnover up 78% to UKP10.6m, swollen by the acquisition of DDT. Apricot says DDT will be fully integrated with Apricot Computer Services by the end of this financial year. Apricot’s hardware division saw a loss of UKP198,000 on turnover up just 11% to UKP37.8m. Once Apricot has got a tighter rein on its distribution channels within this division prospects could improve. At any rate will this division will be buoyed up over the next year by a UKP10m Ministry of Defence contract. As for the future, Apricot intends to focus on its software and maintenance businesses – hence its current acquisition of ITL which will be completed in the present half-year.
