Despite a decline in Microgen Holding Plc’s Computer Output to Microfilm division, it has reported promising year-end results highlighting the growth of its facilities management services, which the company believe is a good indication for future growth. The Welwyn Garden City, UK company reported a 6.3% increase in revenue at 73.4m British pounds, with pre-tax profits up 4.8% at 8.8m pounds. Earnings per share rose 2.0% to 15.1 pence, while net profits showed a growth of 0.8% to 6.0m pounds. The growing facilities management business has witnessed problems with its Nordic operations this year where revenue increased 11% to 26.9m pounds, but operating profits fell 22% to 2.7m pounds. Chairman Douglas Lee is attributing the figures to additional costs for the acquistition last summer of Ljindahls Mailman AB in Sweden, a contract with a Finnish bank coming to an early end following its merger with another bank, and technical problems in Norway when two production units in Oslo were merged. Douglas Lee said it was a disappointing result and decisive management action has been taken. However the UK and German divisions perfomed well, with Microgen’s Information Management business now accounting for nearly half of the group revenue , showing a growth in operating profits of 33% to 3.8m pounds. The year saw the merging of Microgen’s Computer Output to Microfilm and Information Management divisions, enabling sales forces and staff to be seen as one company, to increase effectiveness and efficiency. This side of the business was expected to decline with the emergence of new electronic technology, but Douglas Lee points out that although it is anticipated to decline further, problems arise because it is impossible to predict by how much. The growth of the Information Management side of the business has been funded with money raised by the microfilm division, with no additional funds required to aid its expansion. Speaking about Microgen’s performance over the year, Douglas Lee said: I want people to be able to see underneath the surface of these figures which I think indicate something very exciting for the future.
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