Enfield, Middlesex-based Betacom Plc, the telephone set maker that is majority owned by Amstrad Plc, said the development of its export business has been crucial in the company’s improving profitability and this year it has reported pre-tax profits up 113.3% to ú433,000. Part of this healthy rise was the result, however, of an exceptional profit of ú199,000 on the loan recovery from the employee share option plan run the previous year: operating profits were ú237,000, up from ú138,000 last year. Turnover also rose, up 20.8%, and this was attributed to the successful completion of a contract with the PTT in Zimbabwe and the beginning of sales in Germany through a distribution agreement, worth ú2.1m, it has with its relation, Amstrad GmbH. All this was achieved despite the fact that its major supplier had difficulty in meeting Betacom’s increased demand. The company said it lost some sales in Germany and the UK because of the supply shortfall and has now taken on two new suppliers to spread the burden more evenly. As for future plans, the company said it will continue to try to grow its overseas business, and has just announced a distribution deal with Amstrad International SA in France for corded and cordless telephone products which it said will generate a significant level of turnover. During the financial year it introduced a selection of products in the UK and seven specifically for the German market, and said there will be more product launches in the coming year. It has also started distributing a range of personal message products from Voice It Worldwide Inc, which it described as fitting into its policy of adding new products that have synergy with its current business. But chairman Norman Becker’s generally upbeat end of year statement had one little whinge, namely that it took the UK Office of Telecommunications watchdog from March, when Betacom and other UK telecommunications companies complained to it, until last month, to rule that British Telecommunications Plc should stop subsidising its telephone equipment supply business as it was unfair. Betacom now hopes this edict will allow more normal market conditions to prevail, so that its profit margins will no longer be squeezed by British Telecom’s ability to reduce the retail prices of its telephony equipment to levels that are unprofitable for its rivals. This being the case, Betacom believes it has a good chance in the cordless telephone market. But despite the good news, the board said no to a dividend this year.
