Hoskyns Group Plc, the London computer services company 79% owned by Cap Gemini Sogeti SA has reported pre-tax profits down 35% at UKP5.6m for the first six months to April 30, on revenues down 7% at UKP96m. On top of the UK recession factor, chairman Geoff Unwin points to an unprecendented performance during the comparative six months of the previous year, when 60% of the 1991 year’s profits were generated, as explanation for the relative weakness of the current results. This year, in contrast, Hoskyns forecasts are indicating a return to the traditional seasonal profit trend, Unwin says. Since the beginning of the current financial year, Hoskyns has been implementing an internal reorganisation programme – the group’s product and service offerings have been redefined into four main areas: Education, Consulting, Project Services and Information Systems support. The first two were formerly part of Professional Services. The new divisions will be supported by sector specialists in the fields of commerce, distribution and retail, energy and utilities, finance, industry and public sector. In the education and consulting areas, trading conditions are still tough and Unwin sees no sign of an imminent upturn in business prospects. In project services, there has been something of a revival in new project commitments, though prices and margins are still under pressure. And systems support has felt the effects of increased competition, although demand is reported to be strong for facilities management agreements and the rate of new contracts has lifted. Unwin expects the second half to be more profitable than the first. He says Hoskyns is in a stronger trading position, with a healthier order book in certain parts of the business, and an increasing group headcount. Margins remain tight however, and with no sign of market recovery, Hoskyns, like the rest must remain cautious about the immediate future.
