Hull-based systems house Radius Plc has not been able to revive its fortunes, reporting pre-tax profits down 87% to UKP366,000 on turnover down 6% to UKP28m. Chairman Michael Roberts says sales of software products and support services held up well, but that hardware associated revenues declined by 40% due to the adoption of open systems by manufacturers. Roberts says that the group has increased its focus on software and related services as a result and extended the range of hardware manufacturers with whom it collaborates, thereby reducing dependence on specific suppliers. The Health division and both the UK and Eire Printing divisions all performed well below expectations, he adds. He describes the results as being disappointing, but says that restructuring and improved management control have resulted in the a stronger group. The restructuring costs are recorded as an exceptional charge of UKP576,000. Staff levels have been reduced to a total of 531 and the number of offices reduced by three. Most of the Hemel Hempstead resources are being relocated to the Watford premises and the mainframe data centre consolidated at Feltham. The group’s interest in Radius Ireland was sold to existing management on January 30 this year. Roberts points out that the group raised its cash balance to UKP3.13m from UKP2.48m in the period. He is confident that the newly organised group will weather the recession and revive once the economy picks up.
