Newbury, Berkshire-based Cray Electronics Holdings Plc seems to have picked itself up and dusted itself down after its recent problems – an out of court settlement with Ernst & Young has been reached following the 1989 audit investigations, and the group has reported a return to profitability for the six months to October 31. Pre-tax profits amounted to UKP788,000, against losses of UKP3m for the same period last year, on turnover that rose 2% to UKP53m. CrayCom – the communications amalgamation of Eurotel, Master Systems and Ultranet – is reported to have achieved a record order input from the UK and Europe, including a UKP2m order from a Swedish government agency. Marcol has just signed a contract worth UKP3.5m with the European Space Agency. And the Scientific Instrumentation division’s business is picking up in the US. Cray’s disposals have so far entailed the reduction of the group’s 39 companies to 15 – the majority have been sold as management buy-outs and the rest to private companies and venture capitalists. ACE Packaging Designs Ltd was sold to Lin Pac Holdings in September (CI No 1,529). Says Sir Peter Michael, Cray’s chairman, negotiations for the sale of the defence companies are at an advanced stage. By the year end in April, Sir Peter estimates that a total of 1,000 positions will have been eliminated from the group, leaving 1,500 staff. Group borrowings, which stood at UKP35m to $40m at the end of last year, are said to be on the decline, corresponding to the disposal programme, but the chairman wouldn’t forecast a figure for the year end. He is, however, confident of a bright future for the group in telecommunications systems, instrumentation and software.
