Although Houndsditch, London-based C E Heath Plc suffered a recurring drop in pre-tax profits, its computer services division continued to grow. The insurance broker that owns Peterborough Software Ltd is still trying to move away from the risky underwriting activities that lost the company UKP12.4m this year. Pre-tax profits fell 25.4% at UKP19.1m for the year to March 31, on turnover that rose 26.2% to UKP140.8m. Net profits rose 97.1% to UKP27.6m, after tax credits of UKP13.7m and the sale of Pinnacle Reinsurance Company Ltd with over UKP3m in profits. The computer services operation, comprising Peterborough Software Ltd and Datasure Group, made remarkable progress in a slow market with pre-tax profits up 31% to UKP5m and a sales increase of 15% at UKP39.2m. Growth was experienced in all areas of Peterborough Software’s business except for education and training where demand was limited. Consultancy also continued to suffer the effects of the recession, but these were offset when the company won the biggest contract in its history. The deal with British Telecommunications Plc was worth over UKP1m. Turnover increased by 14% to UKP25.8m, with pre-tax profits up by 36% at UKP3.5m. Despite pressure on demand for its traditional products, software systems and bureau services for insurance and underwriting markets, Datasure saw a major contribution to profits from those divisions serving Lloyd’s brokers and underwriters. It also did well in the area of electronic trading. Profits increased by 22% to UKP1.5m. Current chairman, Richard Fielding, is handing over to Michael Kier, one of the two current managing directors, in July. It is planned that the strategy of reducing borrowing to strengthen the balance sheet will continue.
