Customised electronics firm Alphameric Plc is poised for an imminent return to profits due to rigorous cost controls, which have reduced its manufacturing cost base and so improved margins. For the year ending March 31, turnover rose 33% to UKP6.8m. Net losses were UKP334,000 down from UKP3.8m losses in 1992. But last year’s figures were hit by UKP1.7m charges – although the Old Woking, Surrey-based group gained UKP1.7m from selling its dealing room business, it lost UKP305,000 on closing its French keyboard operations, and had to fork out UKP3.1m for goodwill that was previously written off to reserves. No dividend has been proposed for this year. Chairman Alan Benjamin considers Alphameric’s performance to be a major achievement considering that the second half of the year began with a weak order book and the recession still gripping the economy. But in the last four months of the fiscal year, he says, the group moved into monthly profits, and in the final quarter, achieved the highest manufacturing output level it has seen for several years. Moreover, in February and March, it secured a significant intake of orders at each of the firm’s three businesses, which, Benjamin added, puts it in a good position for the year ahead. The three divisions mentioned above comprise an operation that designs and installs interactive and dumb information display systems; Alphameric Keyboards Ltd, which designs, manufactures and sells customised and standard keyboards as well as point of sale equipment – this is still the group’s largest activity; and its data broadcast business, AlphaServ Ltd. The communications division of British Aerospace Plc, acquired in November 1992 (CI No 2,043) has now been completely integrated into AlphaServe, and was profitable from the first month of operation. While the division currently supports customer sites in 23 European countries, it is keen to expand further to capitalise on the world-wide growth in communication systems. Overall, Benjamin is confident the group can maintain the progress achieved in recent months, especially as the higher levels of orders and business experienced in the latter part of last year have been sustained in the first part of the new financial year.
