Commenting for Atlantic Computers Plc on the proposed acquisition by financial services company British & Commonwealth Plc, group chief executive John Tompkins described the move as a logical step for the strategic development of the company. The computer leasing company, whose shares have been trading at less than half their pre-October crash value, said one of the reasons for agreeing to the takeover was the fact that under B&C it would be able to concentrate on long term objectives without short term City pressure. Atlantic has shown a good rising trend in turnover and profit since its flotation in 1983, even after its decision in 1986 to eliminate forecast residual values for machines coming back off lease in its balance sheet. Last year’s figures saw turnover rise 44.6% to UKP630.7m and pre-tax profit increase 36.4% to UKP38.2m. The company now employs some 1,350 people worldwide and has made nine acquisitions in the last four years, the most recent being ICS in Denmark two weeks ago. Despite such prodigious growth Atlantic is still primarily a UK company. It claims 70% of the home market and 5% of the rest of the European market, but its market share in North America and the Far-East stands at less than 1%. Under B&C’s control Atlantic will automically expand its geographical spread. B&C is a pretty diversified financial services group and prides itself as being an unbureaucratic company. There are only 40 people in the top management team and the company’s policy is to allow each division to operate in an autonomous fashion. The former shipping company was anxious to make clear that things will continue as they are at Atlantic and that there will be no personnel changes. Though B&C views Atlantic primarily as a stable and profitable investment, there are indications that it may help finance expansion in Europe and North America. Atlantic’s non-core business, especially on the medical and property side, is regarded as an added bonus for B&C and may provide synergy with another of its operating divisions. On the downside, there are rumbles of big trouble in the computer leasing world in North America, which may send a backwash over to this side of the water – but may also represent opportunities for an expansionist Atlantic.
