Profits at Kode International Plc more than doubled for the year to December 31 as a result of acquisition of DCM Services (CI No 1,988) and substantial increase in both turnover and profits at Kam Circuits. Pre-tax profits rose 112.1% to UKP1m, while turnover increased 33.3% to UKP20.9m. The board is recommending a final dividend of 4 pence per share, to make 5.5 pence for the year, up 37.5%. The integration of Kode’s computer maintenance arm, Kode Computers and DCM Services was completed ahead of schedule, and activities have now been expanded to cover project management, systems support and planning (CI No 2,107). An increasing amount of DCM’s turnover now comes from services other than maintenance, such as open systems and networking consultancy, software support and virus protection. The acquistion more than doubled turnover at the subsidiary, helped by cost savings resulting from the closure of Kode Computers administrative office in Swindon and the subsequent absorption of operations into DCM’s offices in Hitchin. This has enabled DCM to eradicate duplicated overheads – 38 staff were made redundant at the time, although DCM has since taken on another 15. Chairman Alan Brooker believes the company’s increased size has put it in a better position to win larger, long-term contracts, in line with DCM’s stated policy, and should lead to improved margins and faster growth. Kam Circuits, the group’s complex printed circuit board manufacturer, achieved substantial growth in both sales and profits despite ‘a dismal trading climate’. And Brooker expects 1993 to be another good year as Kode has continued to invest in improving the quality of its products – during the year, the board agreed to buy new state-of-the-art plating lines. Sales at Kam Printronics, a joint venture company that produces high-volume printed circuit boards, were hampered by lack of capacity at the Chinese Allied Group’s plant – Kode’s partner. But Brooker said that customers were unaffected by this shortfall because Kam has negotiated trading relationships with other suppliers in Korea, Malaysia, and Taiwan. Revenues generated by this channel did not go through the joint venture, rather through Kam Circuits, which contributed to its good performance. And Kode has just set up a new marketing company, Kamtronics, to sell all high-volume printed circuit boards made in the Far East to the UK and Europe. The firm is intended to act as a focal point for Kam’s operations in the Far East and to further expand Kode’s activities in the region.
