Time recording specialist Blick Plc is one of the handful of companies in the sector that is a consistent high performer – and it is not likely to be any coincidence that its business is structured to provide a continuing revenue stream. This time, it has reported record results for the year to September 30 with earnings per share outstripping the modest forecast made at the interim results. Earnings per share rose 13% to 29.7 pence and the company will pay a final dividend of 11.5 pence. Chairman of the Swindon, Wiltshire company Alan Elliot said the bumper year was the result of the improvement in the economy, the successful integration of the business purchased from Mercury Communications Ltd in November 1993 and the continued reduction in gearing, which was down to 77% from 167% at the interim. Both the Time and Communications businesses were star performers. Last year the Time Division, which specialises in time management systems, had experienced a fall in profit. This year turnover was up 150% and pre-tax profits rose 47%. The Communications Division supplies television signals to the local authority housing market and radio paging equipment. Its turnover rose 61% and pre-tax profits were UKP6.9m, up from UKP5.3m. Elliot said these healthy rises were due to organic growth of the businesses as well as to the contribution of the acquisitions. Since the half year results in June (CI No 2,432), Blick and Mercury have agreed on the final price for the Time and Security business, at UKP55.8m. This business sells, rents, installs and maintains public address systems and fire and security systems. Part of the price had been deferred until April next year, but Blick paid the total due in September this year. This saved considerable interest payments, said Blick, which partly helped to reduce the company’s gearing. Elliot said he expected gearing to be further reduced next year. Part of the reason for the purchase of the Time and Security business was to improve the rental side of Blick’s business and this has proved successful; the gross contracted rental increased 83% to UKP161m. Blick has also been out buying; last month it bought for UKP3.2m in cash South African TR Services, a former subsidiary of Telephone Rentals Plc (CI No 2,557). Blick is confident the purchase will start its expansion in the newly liberated markets of Southern Africa.
