IS Solutions Plc is engaged in a transformation from a systems integrator to a services group, with a particular emphasis on design and support of companies’ web sites. However, the change has yet to be reflected in the Middlesex, UK-based company’s figures, which continued a dismal trend going back five years. In the six months through June 30, net income declined 7.0% to 252,000 pounds ($405,720) on revenue up 1.1% at 4.2m pounds ($6.7m). Earnings per share were down 7.1% at 5.22 pence.
Ironically, given that enthusiasts for the company maintain that its US operation in Redwood City, California gave it an earlier understanding of the potential of internet applications than domestic competitors, it was the US side that held back expansion in the first half. While UK sales were up 13% and pre-tax profits climbed 12%, the modestly-sized US operation made a small loss after sales fell 35.7% to $1m. This was blamed on the extra costs of a beefed-up management team and the realignment of the US operation to the new business model.
