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June 12, 1997updated 05 Sep 2016 12:48pm

ELONEX ADDS SYSTEMS & SERVICES BUSINESS TO BOOST EARNINGS

By CBR Staff Writer

In a bid to inflate its falling profits, personal computer maker Elonex Plc has established a new division to cater solely for customers looking for a complete information technology package, and says it will operate on an independent basis. Sorcha Dowdall, the division’s director of systems solutions says customer demand drove Elonex to establish the division, but admitted the company’s falling profits reported last year played their part. Elonex reported profits down 27% at 3.4m pounds and a 7.6% drop in revenues to 101.5m pounds for the year to April 30, 1996 (CI No 2,975). Dowdall said the company’s year end figures ending April 1997 are currently being audited, and although she didn’t know the exact figures, believed the company has had a good year. The Elonex Solutions for Business Systems division will offer services supporting disaster recovery, network design and installation, online commerce via the internet and intranet, network and personal support and maintenance, and user training. Dowdall said Elonex is investing 1.3m pounds in the division this year, and is confident it will prove a success and added that networking and disaster recovery is expected to form the core of the division’s business. In the past Elonex has provided government and the public sector markets with hardware products, and the new division will look to those markets, although it is currently trying to establish its own customer base in the commercial market place, focusing on financial, distribution, insurance and manufacturing, among others. Initially ESBS will focus its business in the UK, but will look to mainland Europe in the future, although Dowdall said it won’t be in the first year. The company then plans to target the middle East before heading to the US.

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