As in the best traditions of newly floated companies, Logitek Plc has produced results comfortably ahead of its prospectus forecast with pre-tax profits up 70% on turnover up 75%. And, the directors of the Manchester-based distributor are predicting further substantial growth ahead after a strong start to the current year in all divisions. The highlights of 1986-87 were the increase in the dealer network to encompass over 600 independents; major contracts for the particularly buoyant corporate accounts division from three government agencies; new OEM contracts for display terminals from British Telecom, British Olivetti and Apricot; and strong sales of Altos Computer Systems’ boxes, Wyse terminals and personal computers, and Genicom printers. The communications and networking, and maintenance divisions also did well. To cope with the increased demand, the computerised management information system is being extended to allow staff to interrogate the central database from remote locations. It has already added 30,000 square feet to its distribution centre and engineering workshops and set up new regional offices in Birmingham and Leeds. At 130 pence, on an historic price-earnings ratio of 16.8 and with bright prospects – Northamber which reports tomorrow is on a multiple of 34.4 – Logitek looks to be undervalued against the rest of the sector even though its share price has doubled since the flotation in November.
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