UK-based IT services firm Electronic Data Processing Plc has reported a net profit for the six months through March 31 that is virtually flat at 847,000 pounds ($1.3m) though the figure last time was boosted by a 156,000 pounds ($249,000) profit on share sales. Revenue has slipped 5.9% to 5.4m pounds ($8.6m) but EDP says this is the result of its strategy of moving away from supplying hardware.
EDP sees its future in software and services and has set up a system recovery suite for use by customers who experience catastrophic system failure. A continuing improvement in financial results is expected for the full year. The company has also built up a formidable war chest of 10.8m pounds ($17.2m) in cash – the equivalent of 41 pence a share.
But while one would expect EDP to use its resources to buy up companies that would extend the range of its offerings, chairman Michael Heller says this is the intention but insists the silly price expectations of vendors remains a continuing hindrance. However, he expects this to moderate next year when the benefits of revenue from Y2K work have passed.
