While Compel Group Plc, the London, UK systems integrator, has been impacted by a slowdown in expenditure as a result of Y2K, which it expects to continue until the end of the year, it believes that prospects are excellent beyond the millennium. We anticipate a swift increase in expenditure levels as organizations seek to fulfill pent-up demand, said chairman and chief executive Neville Davis.
With sales boosted by its December 1998 acquisition of InfoProducts UK Plc, the UK desktop services company, Compel reported net profit up 75.4% to 10.6m pounds ($17m) in the year through June 30 on revenue up 39.8% at 293.7m pounds ($472.8m). Compel paid a nominal one pound ($1.60) for heavily loss-making InfoProducts and paid off its 10m pounds ($16m) of debt. After cutting costs, Davis says it will pass the break-even point during the second half of the year.
