London-based management consultancy, Butler Cox Plc, has just announced its mid-term results to June 30, which are showing the effects of the acquisition of Cranfield IT Institute Ltd made earlier this year (CI No 1,370) – pre-tax profits are reported down 37% on the equivalent period for 1989 at UKP400,100, including a UKP90,000 loss by Cranfield. Excluding revenues earned from this new acquisition, Butler Cox is shown to be still on the upward climb with turnover up 15% on last time – and with Cranfield’s sales taken into account total turnover is up 30% on 1989 at UKP5.2m. Butler Cox’s managing director, George Cox, commenting on the half-year results, says that the company did not expect to match the results for the same period in 1989 because it has been involved in a development programme this year. This programme has involved the recruitment of eight new managers in the UK, and preparation for further expansion into Europe – which so far accounts for a third of total revenue with the re-appointment of a UK company director to the Netherlands where Butler Cox has recently relocated to a new office. Apart from the Netherlands, Butler Cox intends to move further into France and Germany, where it already has subsidiaries. The acquisition of Cranfield in the UK was part of a move to expand the Butler Cox range of services – Cranfield adds educational services in the field of information technology to the company’s consultancy and research activities. According to Cox, these devlopments have put pressure on margins as anticipated – but, he points out, this is not a cause for concern because it is an investment in Butler Cox’s future. He also feels that the continually expanding number of subscribers to the company’s continuous research programmes is indicative of Butler Cox’s strengthening position and, he adds, our cash position remains strong, with net cash balances of UKP2.5m at June 30. In terms of strategy for the following months, Cox says that emphasis will continue to be given to the expansion of the Foundation and Productivity Enhancement subscription programmes both in the UK and in France and Germany – these provide the company with a growing revenue base, solid cash flow and a blue chip client network. The intentions for Cranfield are in-house training for professionals and management. Finally, he warned that the downturn in the UK economy will hit year end results.
