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March 14, 1994

HARDWARE AND MAINFRAME SOFTWARE MARKETS PUSH RADIUS TO A DEFICIT OF UKP1m

By CBR Staff Writer

Radius Plc, the Hull-based systems integrator, continued the plummet to loss that began in the first half, fulfilling its own prophecy made in December (CI No 2,311). The firm is still feeling the pinch in the hardware and mainframe software markets, but has managed to preserve the majority of its cash nest egg, which decreased 44.5% to UKP1.22m at the close of the year. The company, which posted a loss of UKP1m in the year, had to make reorganisations within its mainframe operations, which incurred a UKP515,000 cost. Its problem with software sales meant that the group made 90% of its revenue from Unix products in the year. Although most of its Unix software technology is in-house, it acquired the rights to sell Costlog, an Australian package for the legal industry that helps keep track of telephone time and fees. It is hoping that some of the mainframe business will stay stable for the next few years in the public sector, where mainframe sales are strong. Another bonus was the sale of two large retail systems in the US through its Radius Retail subsidiary. The system was sold to CompUSA and KMart International, with the help of Ernst & Young. As a result, 10% of revenue came from the US this year. The printing software business, called Retail Solutions and based in Dronfield, near Sheffield, also did well according to the firm, which said that it was discussing distribution channels overseas. Radius hopes to return to profitability next year – that is the plan. In the meantime, no final dividend will be paid.

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