Granada Group Plc has been hit by the pressure on consumer spending which has knocked pre-tax profits down 6% to just over UKP84m on turnover that declined by 13% to a little over UKP763m. Chairman Alex Bernstein does not expect an improvement before the next financial year. Granada’s business services division, comprising the computer maintenance business Granada Computer Services International remains the smallest division behind Granada’s rental, leisure and television interests, but it grew the fastest in terms of sales, with turnover up 11% to UKP105m. Furthermore, its growth prospects look good. So far during its financial year it has secured new business worth over UKP30m in annual revenue. In May alone, at the beginning of the second half of its financial year, the UK side of the business achieved UKP2.4m of new business. Formed by the amalgamation of four independent maintenance companies (CFM, DPCE, Mainstay and SMS), Granada Services has experienced some difficulty in getting a strong financial act together. While turnover growth is respectable, profit margins are not. However, new senior management and improved business systems are expected to start showing through in its figures in the next financial year.
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