Apricot Computers Plc, which was indicating that the collapse in sales of its older range before the arrival of enough chip sets to meet demand for its new Micro Channel-compatible ones would be a one-month setback (CI No 1,084), now makes it clear that the setback will be rather more prolonged – enough in fact for finance director Christopher Loynes to resign for personal reasons, sending the shares spinning 26 pence to 70p. It is now clear that the financial division has been hit hard by the cutbacks in the City – the fall in orders started to accelerate in December in the wake of the shutdowns at Morgan Grenfell, and the company says it has reduced the workforce in the unit by 25% and cut its costs by UKP500,000. Nevertheless, profits this year are now not likely to match the UKP8.2m reached last year, and statements that the company is confident that growth will resume again next year are beginning to wear thin from Apricot.
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