Kettering, Northamptonshire-based business accountancy software specialist Pegasus Group Plc has seen the continued decline of its fortunes in the first half of its 1992 financial year, ended January 31. Pre-tax profits dropped 59% to #320,000, after a deferred #272,000 research and development charge last time, on revenues down 19% at #3.4m. The software division saw an 18% drop in turnover compared with the equivalent period last year, despite the introduction of two new product lines – a Budget range, based on technology from Facts Software Ltd, which Pegasus acquired a year ago; and an MS-DOS Windows modular accounting product, jointly developed with Access Computing in which Pegasus has a 17.6% stake. Chief executive Derek Moon says, however, that the new product lines had taken up a considerable amount of investment, which is only now beginning to pay off – sales broke even last month and will show in the results for the second half. Moon claims that Pegasus has had a good first quarter, and insists that the year of restructuring is over. Cash balances stand at #2.9m, which is being held in waiting for a suitable acquisition, though the group claims not to have anything up its sleeve. Moon dismisses February’s gossip that a bid approach had been made to Pegasus (CI No 1,852), which now boasts the biggest product range its ever had. In January, Pegasus doubled its accountancy forms business with the acquisition of #1m-a-year Stockforms Ltd for #500,000 up front and a further #200,000 payable next year. This is said to have contributed to group profits from day one. The forms division was profitable during the first half, but turnover by dropped 5%. Moon, now aged 63, is about to step into the less-pressurised role of non-executive chairman, as Jonathon Hubbard-Ford takes his position as chief executive. Moon feels that he has done his job of turning the company around, and is happy to let younger blood take the driving seat.
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