In the UK, managers at the Information Systems and Services division of the cables and construction company BICC Plc have just completed the UKP7.6m management buyout, with financial backing from the venture capital group 3i Plc. BISS, which was set up by BICC in 1989 as part of its Technologies Division, specialises in network integration support for blue chip customers. Although the Hemel Hempstead, Hertfordshire company made UKP750,000 profit on turnover of UKP18m last year, the group as a whole made a loss. BICC is now returning to its core business of cable manufacture and construction. Included in the UKP7.6m sum is around UKP1m for expansion into new markets including distributed computing, technical support services and open systems consultancy. We want to become more of a professional services company, said Mike Hayden, the new managing director of BISS Ltd. BISS says it expects turnover to be UKP22m this year, and profits to exceed of UKP1m. At the moment, 80% of its business comes from the UK market, and it recently won a UKP400,000 contract to supply and implement systems at the Welsh Office agricultural department. For the future, it is looking to expand into the Middle East. All of the company’s seven directors have contributed to the investment giving them a substantial minority stake. In addition, the company’s existing 175 employees have all become shareholders. 3i has a UKP2m stake in BISS, taking the total amount of 3i’s information technology investments close to the UKP100m mark. Other investors are Lloyds Development Capital which tossed in UKP1m, and the former parent, BICC, which has chosen not to declare the stake it is retaining. NatWest Acquisition Finance put up UKP2.75m of banking facilities.
