Computer Management Group Ltd, the successful private management consultancy which recently revealed a change of heart towards going public and said it planned to float on the London International Stock Exchange by 1995 (CI No 1,747), has as expected turned in revenues of UKP103m for 1991, up 7% from the previous year, pre-tax profits also up, by 6%, at UKP9.1m. The company, which claims 10% of the UK payroll processing market, was until recently 100%-owned by its staff and their families; then institutional investor Midland Montagu Ventures paid UKP3.1m for a 4.3% stake that had become available. The company has 1,600 employees, UKP8.5m cash, no debt and is doing very well for itself, thank you. Its Dutch business accounts for 53% of revenues, though CMG is cautious that this economy may slow down this year. German operations are said to be benefitting from the acquisitions made in 1989 and 1990, which were paid for, chairman Ron White notes proudly, from CMG’s own reserves. The company employs more than 100 consultants spread between offices in Frankfurt and Munich, where a second office was opened early in the current financial year. And plans are now being finalised to extend the German business with the setting up of an operation in the Cologne-Dusseldorf region. The UK business held up extremely well in the face of persistent price-cutting by (the company’s) competitors – profits of UKP600,000 were reported, against a loss of UKP1m in 1990, on turnover flat at UKP39m. CMG says it has declined to conduct unprofitable business, preferring to reduce establishment costs to match the prevailing demands of the market. This has involved the closure of unprofitable operations in Scotland and Bristol, the reorganisation of top management structure and marketing operations. This so far has increased productivity by 12% and brought overheads in line with target. The flotation schedule has been pushed back slightly, and the company is now aiming for a full listing at the latest by 1996, though some look for 1993.
