Kalamazoo Computer Group Plc has set its sights on the European market as the means to expand its empire. Its agreement last month to purchase the whole of Datapoint Corp’s European automotive dealer management systems division for $33m, instead of just a 50% stake (CI No 2,923), will give the company a presence in Germany, Austria, Switzerland, France, Belgium and Spain, as well as its existing operations in the Netherlands and Finland. The division achieved an estimated profit of 2.8m British pounds for the year to July, on turnover of 23m pounds, and provides implementation and support services for the Ford Motor Co-specific dealer management system Darts, with a customer base of about 1,650 Ford main dealership sites. Despite a disappointing first half from the Security Print division, the UK-based group turned in results for the year to March 31 in line with expectations. Pre-tax profits slipped 14% to 5.9m pounds on turnover that rose 13% to 65.2m pounds. The Computer Division, which consists of Kalamazoo Motor Trade and Kalamazoo Computer Solutions and accounts for 72% of the group’s turnover, increased revenues by 10% to 48.3m pounds during the year. Sales of the computerized used car valuation service Autoscan, began in the first quarter of 1996 following successful pilot schemes. The company was so encouraged by the worldwide potential of the product that it bought that company that developed it – Suomen Autoalan Tietopalveluverkko Oy.
Training & Enterprise Councils
The Finnish company was aquired from Scribona AB in October 1995 for an initial cash consideration of 870,000 pounds and a further 358,000 pounds over three years. This acquisition, combined with that of Datapoint’s Automotive Dealer Systems, will provide a firm base for Kalamazoo to achieve significant growth outside of the UK while providing customers with pan-European coverage, said Chairman Bob Jordan. The group’s other computer related activities has an excellent year, said Jordan, with turnover up 11% to 15.2m pounds. Kalamazoo’s recent acquisitions, Wembrook Computer Services Ltd’s stockbroker system (CI No 2,642), and WIS Computer Systems Ltd, now Kalamazoo Answer Ltd have performed well during the period. And a two-year contract signed with the Bristol & West Building Society this January, worth 818,000 pounds provided a boost for the group’s Support Services division. Losses incurred by Kalamazoo Computer Training Ltd during the previous fiscal were stemmed, and its activities in government training through the Training & Enterprise Councils traded with marginal profitability until it was sold to Corporate Services Group in October of last year. The group expect annual revenue from the dealer management system to be about 50m pounds this fiscal, and intend to use the acquisition of European Automotive Dealer Systems as a springboard into the European market. The board has proposed a dividend of 3.05 pence, to make the total for the year 4.15 pence, up 11% on last time.
