Microvitec Plc, the Bradford-based international systems and services group, appears to be making steady progress since the sale of its loss making distributor Logitek Plc in January last year in a management buyout. At the six months to June 30, 1993 pre-tax profits had soared 819.4% to UKP570,000, but by the year-end to December 31, 1993 pre-tax profit had risen a further UKP1.0m in the second six months, an 82% rise. Pre-tax profits for the full year were UKP1.6m against a loss last time of UKP2.1m. The company made a profit on discontinued operations of UKP58,000 comparable with a loss of UKP910,000 last time. Microvitec now consists of three divisions: Display Systems, Networking, which includes Microvitec Systems Integration Ltd and Silicon Manufacturing Technology Inc of Canada, and Software Systems which comprises CSM Ltd and Integrated Publishing Systems. Turnover for the year was down 29.5% to UKP35.2m, with turnover on continuing operations up 10.1% to UKP33.3m. Profit on continuing operations before interest was up 80.3% to UKP2.2m. Gearing at the year end was down to 48% compared to 87% last time, because of the cash sale of Logitek, but was up 1% on the interim figure of 47% as the company geared up in the last quarter for that new strategic alliance with Acorn valued at UKP6m annually – in October, as reported, it announced it was jointly developing a range of colour monitors with Acorn, which it will manufacture and sell to Acorn, as a main supplier. Microvitec invested heavily in increasing production capacity, mainly for this alliance, and began shipping to Acorn in volume at the end of November. Cash in hand or at the bank stood at UKP583,000 this time, down from UKP795,000 last time. The firm’s latest joint project is with Electrohome of Canada in development and sale of systems using liquid crystal displays, with sales already in the US and growth expected over the next few years. The order book is said to be strong, in particular in the Display Systems and Networking Divisions, and it has ‘large long-term contracts’, but it declined to give any further detail. Earnings per share were 2.1 pence for the full year. It is now to recommend a capital restructuring to shareholders and the High Court, that if accepted would enable it to pay dividends in the future.
