London-based microfilming bureau Microfilm Reprographics Plc is reporting pre-tax profits for the year to June 30 up 25% at UKP7.5m on turnover up 29% at UKP31m. Chairman J A Redmond attributes its success to plain old hard work and the fact that it does not believe in bank borrowing – the company has around UKP4.5m net cash which Redmond says is increasing as a result of continuing real profitability. The chairman says his company is cheap and that this has also contributed to success – Redmond has spent many years in stockbroking where he led the debauched life, wining and dining, but now he runs a tight ship and doesn’t host extravagant lunches. Microfilm Reprographics was formed in 1971 and joined the stock market in 1986. In 1987-88, the company expanded from just conventional microfilm into high-tech, with scanning and digitising of documents. In 1989, Microfilm Reprographics expanded into the US, having acquired Atlanta, Georgia-based Computer Microfilm Corp. In July last year, Computer Microfilm took over the rights to the New York company, Data Fiche Services Incorporated (CI No 1,243). Last October, Microfilm Reprographics acquired the assets and business of the micrographic division of American Management Systems Incorporated, Washington DC, including computer output microfilming and laser printing. Over the last year, the company has had a rest from material acquisitions, but Redmond is on the look-out for any suitable takeovers in the coming year – by suitable he means he will only take on business which comes into the company’s chosen field of operation because, he says, he doesn’t want to risk being left with a business he doesn’t understand if ever the acquired company’s staff move on. The chairman has no particular acquisitions in mind, but says he is keeping his eyes open – he has plenty of cash to spend and, he adds, there are many companies that need saving in the present economic climate. Subject to obtaining shareholders’ approval, Microfilm Reprographics will be making a capitalisation issue of one new share for every two held – effectively a three-for-two split. Despite current economic conditions, Redmond believes 1991 will be another successful year for the company.
