Dataflex Design Ltd, the South Wimbledon, London-based manufacturer of modems and ISDN equipment went into voluntary liquidation last Thursday, but the company’s management says it intends to stage a buyout, and is currently in talks with potential investors. Marketing director Phillip Benge put the collapse down to the low margin box-shifting part of the business, in stark contrast to the successful sales of modems and ISDN equipment on the OEM market. The low-end side of the business had become an expensive albatross round our necks, said Benge. An in-flux of cheap low-end modems from the US and Taiwan had caused margins to evaporate. This in turn led to a loss of confidence in the company, and its factoring facilities were withdrawn. With cash flow drying up, the management decided to call a halt and attempt to start again with a leaner company. The new company will concentrate on the high-end value-added modem market, as well as ISDN and recent internetworking products. Dataflex was successful in those markets right up to the end, with the company reporting new OEM orders in January of over ú500,000. The management team hopes to offer jobs to around half of the 50 former employees and Benge declared himself one hundred percent certain that it can survive. The bulk of our core business was very healthy indeed and we’ve already received serious offers from several different sources to finance a management buy-out. Turnover last year was about ú5m.
