The news was grim from Learmonth & Burchett Management Systems Plc, lately of London, but now headquartered in Houston, Texas. In spite of this, the company is confident of returning to profit in the second half, but this optimism failed to rub off on the market and Learmonth’s share price fell 11.5 pence to 85 pence, against the tide. Turnover at the software and services company fell 15.9% to UKP11.0m in the six months to October 30, and losses before exceptional items were UKP836,000, against a profit last time of UKP181,000. The massive UKP3.4m exceptional charges related to restructuring were partially offset by a gain of UKP980,000 from the disposal of the UK general consultancy business, but pre-tax losses hit UKP3.3m. On continuing operations, turnover fell 5.8% to UKP10.6m. This was entirely down to a 37% fall in its UK business, which was most affected by the move. Indeed, non-UK revenues grew 13%, but this was not enough to compensate. Also included in the exceptional items is a UKP320,000 provision for professional fees for contesting the legal action brought by the Performing Rights Society, disclosed at the time of the company’s last set of results (CI No 2,453). Learmonth & Burchett has now received a writ, but without a statement of claim or how much will be claimed. Learmonth still intends to contest the proceedings and no provision has been made for the claim, other than the costs of defending it. Learmonth says it has now completed its first round of restructuring, including the move to the US, funded by the July rights issue (CI No 2,453), and will have most of the other changes in progress by the end of this financial year and has enough cash, UKP1.8m, to fund the changes until April 1996. As a result of the move, it will henceforth report quarterly. The company will not pay an interim dividend and the full year one is definitely in doubt.
