With completion of the management buyout from Erskine House Plc of European Printing Systems Ltd, Fontware Ltd and European Systems Support Ltd in September (CI No 1740), the former Erskine Office Systems has retitled itself the European Business Group Ltd. The UKP4.7m management buyout was financed by Lloyds Development Capital and Gartmore Venture Capital, which together hold 60% of the shares with management having the remaining 40%. Chief executive Paul Smith, who led the management buyout, is planning to tread carefully with regard to European expansion and aims to make the group a European specialist in computer output printing, font technology and service by 1996. Smith is looking to achieve a 200% growth in turnover, with a 12% profit on revenue. He says that this implies a compound growth rate of 20% per annum and that this would come through strategic acquisitions and growth. Smith says that the company is carrying an amount of long-term debt but denies that this could be crippling. The three had combined turnover of UKP20m for the year to March 31, 1991, with profits before tax of UKP750,000, less Erskine House management charges of UKP400,000. It currently has 6,500 customers in the UK and on the continent and Germany is seen as the most promising for acquisitions. The majority of business is expected to come from the UK, France and Germany. European Printing Systems currently does 4% of its business on the continent, Fontware 15%. European Printing Systems is a provider of value added laser printers, Fontware an independent supplier of digital typefaces to the laser printer market and European Systems Support is an independent maintenance company that provides service and support for group products.
