Computer services group Hoskyns Plc, 79% owned by Cap Gemini Sogeti SA, has followed through on its June warning that results for the second half would probably be disappointing. Pre-tax profits for the full year plunged 17% to UKP14m on revenues down 10% at UKP201m. By market sector, industry – the largest contributor, accounted for 39% of total revenues; financial services for 16%; distribution and retail for 12%; commercial for 12%; and energy and utilities for 10%. Energy and utilities showed the only real increase in turnover, up 53% on the previous year to UKP19m. By division, professional services made up 11% of the total; systems integration 47%; and facilities management 42%. Chairman Geoff Unwin says Hoskyns worked with some 3,500 customers during the year, the top 30 clients each spending over UKP1m, accounting for 41% of group revenues, down from 45% in 1990. Geographically, 83% of the group’s revenues were generated within the UK, Germany contributing 11%, the rest of Europe 4%. Germany’s contribution has doubled over the year, to UKP22m, following Hoskyns’ acquisition of TechnoData in 1990. Group margins fell to 7% from 8%. The chairman reports that its controlling owner, Cap Gemini, will make its further offer for the remainder of Hoskyns’ shares within three months of Hoskyns releasing its 1992 financial results. The 1993 offer will be subject to a minimum price per share of the greater of a multiple of earnings for the year ending 31 October 1992 of 23 times and 469 pence, subject to a maximum of 660 pence – phew, decipher that. As part of a restructuring programme within the Cap Gemini group, Hoskyns has transferred the responsibility for its Dutch operations to Cap Gemini in the Netherlands and has acquired Cap Gemini’s GCS (UK) Ltd subsidiary, which now trades as part of Hoskyns Public Sector Division. The profit effect of the two transactions is reported to have been neutral for 1991. In September, Fidalco Ltd, the holding company for CBT Systems Ltd, the computer-based training group, was sold to Thornton Group Plc for a total consideration of UKP3m, although Hoskyns still distributes CBT’s products in the UK. Just as he was pessimistic about the six-month period just past, the chairman is equally gloomy about the current financial year, as the recession grinds grimly on and potential customers continue to cut back on their expenditure on external services.
