Kalamazoo Plc, the European computer services and printed systems group based in Birmingham, is very excited about its full year results which saw a 576% leap in pre-tax profits to #6.4m to March 31 on turnover that grew 8% to #60.9m, marking a turnaround in the company’s fortunes. The profit figures also include a gain of #516,000 from the finalisation of the sale of a company dating back to 1992. Operating profit was up 202% to #5.6m and 74% of turnover now comes from the computer segment which is made up of both Kalamazoo Motor Trade and Kalamazoo Computer Solutions, the rest is from the print segment, now re-named Kalamazoo System Print. In the computer services sector profits were up 40% to #5.0m on turnover up 19% to #45.2m, achieved by strong growth from the Motor Trade business while print services turned around to see a profit of #2.1m against a loss last time of #767,000 on revenues down 16% to #15.8m. This was achieved by the division refocussing on higher margin paper-based systems such as security print products and advanced system forms and a shift out of manufacturing unprofitable paper products such as bespoke forms. CBA/Nederland BV of Holland supplies of personal computer hardware, software and services to 250 dealers and was acquired by Kalamazoo in May last year. It met its profit targets, increased market share and contributed around #3m turnover, but still faces the problem of continuing recession on the continent. Kalamazoo’s net cash balances were #7.9m at the year end and it has also managed to cut its number of debtor days to 53 from 65. Kalamazoo is currently partnering with IBM Corp for the roll-out of a dealer management product developed by Ford Motor Co called DCAS – an open systems product aimed at the RS/6000. It also has a deal with the software house Cap Gemini Sogeti SA, which is using Kalamazoo’s Classic product to support Nissan dealers. Chairman Peter Harrop said that the acquisition of CBA was relatively low risk and in the current fiscal year the firm will be looking at higher risk acquisitions to complement its businesses. It also remains interested in buying substantial computer maintenance businesses despite the poor success many have been facing. In the UK it plans to expand its computer and vertical markets while on the continent it sees the motor trade providing the growth opportunities. To reflect the new emphasis on computer service-related business, it is proposing to the annual meeting a change of name to Kalamazoo Computer Group Plc. Earnings per share were 10.2 pence and a final dividend of 2.45 pence is proposed by the board.
