Bradford, West Yorkshire-based Microvitec Plc saw its losses deepen to UKP3.8m from UKP2.4m in 1990. The company is striking an upbeat note however, saying that rationalisation reduced operating losses in the second half to UKP800,000, compared with UKP1.6m in the first six months. Turnover in the year to December 31 increased by 58% to UKP36.9m. The company claims that difficulties caused by the hostile take-over of Logitek Plc have been resolved, and that Logitek is now contributing to the tune of UKP17.7m. A rights issue in May raised UKP2.6m, facilitating the Logitek acquisition, but bank debt and continuing losses increased borrowings, and gearing at year-end stood at 84%. Also, the UKP8m joint manufacturing and marketing venture with Canadian company Electrohome Inc is going ahead successfully albeit second-time around after the initial attempt foundered (CI No 1,781). Microvitec’s chairman, James Bailey, says that 1991 has been a year of considerable achievement, despite difficult trading conditions and a worldwide recession which hit the group badly. 1992 has started well, claims Bailey, and with a substantially-improved order book, he now sees signs of recovery. An exceptional item of UKP653m covered further rationalisation costs, redundancy payments, write-offs and the potential loss on a disputed contract in the US with World Wide Technology Inc.
