Blick Plc, the Swindon, Wiltshire-based time recording and communications equipment group is pleased with its progress following its acquisition of Granada Group Plc’s Telefusion Communications Ltd subsidiary earlier this year (CI No 1,675). The company, which thrives on a strong continuing rental stream, has turned in pre-tax profits for the year to September 30 up 11% at UKP6.3m on turnover up 8% at UKP23.7m. Group director Colin MacInnes says that the acquisition of Telefusion and its integration into the Communications Division has achieved a better balance of turnover between Time and Communications. The Time division made the largest contribution to group profits at UKP4.4m, a fall of 8%, despite suffering a 23% fall in equipment sales. The contribution of the Communications division was up 136% at UKP1.9m. Both divisions have strong customer bases, according to MacInnes, as rentals are more attractive to customers in a recessionary climate. The communications division has increased its customer base by 88%. Excluding Telefusion, the division increased its profits by 29%. The pager manufacturing business held its own although demand in the health care sector fell off. Lower manufacturing costs have been achieved in this area through research and development investment, according to MacInnes. Telefusion has made a substantial contribution to group profits since acquisition, the company asserts, and MacInnes is convinced of the potential of the business that opens up new areas to Blick, in particular providing access to local authorities that held rental contracts with Telefusion and are now coming up for renewal. The rental income has increased by 45% since the acquisition, he adds. MacInnes is disappointed by falling equipment sales but says an upturn in the economy would remedy this. The group held net cash balances of UKP2.4m at the year-end.
