IBM United Kingdom Holdings Ltd was one of the good guys in the company’s worldwide empire in 1987, turning in net profits that grew very substantially more than those for the group as a whole – but the black spot for the UK company was the home market, where turnover grew not at all. Net profits were 20% ahead at UKP315m, a lower tax rate meant that pre-tax profits were only 10% ahead at UKP465m, and turnover overall was 13% at UKP3,483m. But within that, UK busines was unchanged at UKP1,646m while exports IBM makes PS/2s and 3270s in Scotland, communications processors and mid-range disks in Hampshire, and is beginning manufacture of the Rolm 8750 PABX. It’s likely that UK business was static partly because of the decline in the dollar making it more attractive for leasing companies to buy mainframes from the US than through IBM UK, partly because of slow take-up of the Personal System/2 here. The early retirement programme took its desired toll, and, not doubt also helped by a crimp on hiring, employment fell by 775 bods, 4.1%, during the year, and at December 31 stood at 18,026. Some 770 admin staff were also sent out on the road to expand the sales force and reduce overheads.
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