London-based Monotype Corp, which makes laser-based photo-typesetting equipment has effectively put itself up for sale after reporting a UKP1.4m pre-tax loss in the 15 months to March 1989 against a profit of nearly UKP5m last year. Turnover for the extended period was at UKP55.5m and following the up for sale announcement the shares have risen to value the company at UKP22m. The likes of Dupont Corp, Eastman Kodak Co or Bayer AG are being tipped as possible suitors but it shouldn’t be forgotten that Imtec Group Plc made acquisitive noises last December and was rebuffed, (CI No 1,073), and it may return with a bid. The downturn in the newspaper industry has hit small companies like Monotype badly (De La Rue’s subsidiary Crosfield Electronics is also looking for a strategic alliance) at a time when it is both restructuring and having to invest heavily in research and development – it spent UKP2.2m in this area in the past three months alone. The fruits of this investment are, however, expected in the third quarter of the current year, bringing a recovery of UKP2m after first half losses.
