A surge in the second half let Kalamazoo Plc, the Northfield, Birmingham computer services and printing firm move back to profit and restore a full year dividend of 2.1 pence. It also plans a rights issue for within the next 12 months. Computer business rose 6% to UKP37.8m against the eight months to March 31 1992 when Kalamazoo changed its year end to March. This area is now the firm’s priority, accounting for 80% of business and the group has moved its Stock Exchange listing to the Electronics Sector from Print, Paper & Packaging, where it was placed in 1948. Computer maintenance and service business both grew, helped by acquisitions, including the purchase of CBA Nederland BV (CI No 2,171). Chairman Dr Peter Harrop said this purchase was in line with increased activity in continental Europe: We are now a European computer company. A European non-executive direc-tor, probably German, is about to join the main Board, multi-lingual job applicants will be welcomed and the new auditor, Touche Ross has considerable Europe-wide experience. The printing services division showed disappointing results and chairman Dr Peter Harrop said:We have been late to downsize and reposition our activity and it has been an expensive and painful process. As printing got the company going, way back in 1902, it is sentimentally important to Kalamazoo. Chief executive Michael Langmore said it has returned to profitability, but the UKP1.5 million charge from the severance of 150 staff hit hard. The group workforce stands at 1,100. The broom has swept through Kalamazoo Business Systems and the entirely new business team will streamline the product range and reverse the decline of repeat business. The group will also continue to make acquisitions, probably two in the next three to six months, at least partly paid for with new Kalamazoo shares; it is now negotiating with firms in Germany and France. The Board is also considering internal incentive schemes to restore staff morale, but said staff commitment is exemplary.
