Schroder Ventures-backed MBS Product Sales Ltd, formed in a UKP28m management buyout from MBS Plc (CI No 1,183), has reported promising turnover and profits for the first half. Turnover was UKP59.9m compared with UKP50.7m for the same period in 1988, and net profit was UKP1m, compared with a loss under the MBS banner, which lost UKP20m overall in 1988, and attributed most of that to Product Sales. The new company says that the impressive turnaround is due to a different management style that insists on tight control of profit and cost centres, combined with an increase in trading revenues. The two largest divisions, Combro and Corporate Marketing, have been merged into one operation, the Personal Systems Division. The two had traditionally addressed the large company sector, and the firm believes that combining the two should remove any destructive competition, and also create the largest added value personal computer sales force in the country. The Trade Sales Division, which distributes personal computers, has been renamed Technology Distribution. The company says that growth has been achieved by concentrating on established lines, and a reduced product set will enable the sales force to focus more clearly on dealer needs. The group intends to tackle new markets such as small to medium businesses that have traditionally been the preserve of Amstrad, and cites the investment put into the MBS Database, which it leases to the financial sector and direct mailing companies. Running on an IBM 4381, it contains extensive information about the UK’s top 30,000 companies.
