Vistec Group Plc, the software and services company, has rebounded from poor results for the first half from the contribution made by the group’s new acquisitions. Turnover increased by 16.4% to #45.0m and pre-tax profits grew 3.9% to #3.4m. The group’s growth in the second half was accelerated by the acquisition of ISO Communications in November 1993 and Data Logic Communication Services in February. These acquisitions, amounting to #3.1m, have dented the company’s cash reserves by 12.3% to #5.9m. Sphinx Level V, the Unix software distribution arm, put in a late burst after a sluggish start to the year. However its figures are dominated by Informix Software Inc’s decision to terminate its supply agreement with Vistec this September – it has appointed Frontline Distribution Ltd sole UK distributor. Chairman of Vistec Bob Morton says the company is most likely to be taking up a rival product in direct competition with Informix and although he was aware of the warning signs, it was still a disappointment after assisting in building the company’s distribution system over the last 10 years. The loss of the contract represents 10% of Sphinx’s turnover and around two per cent of the group’s turnover. Both of the new acquisitions come under the umbrella of Vistec Computer Services Ltd, and these kept the company’s trading profits stable. The company says it suffered extreme pressures in its traditional markets, and hopes to recapture better margins by widening the range and quality of its service products, particularly in computer and network support. It looks to the acquisitions to accelerate this process. For the year to April 30, they contributed #198,000 in pre-tax profit on #2.6m of turnover. The group will pay a total dividend for the year of 0.4 pence, up 6.7% on last year. The effect of the news was minimal and Vistec shares were flat at 25 pence.
