Unipalm Group Plc, which claims it was the first Internet access provider to float anywhere in the world, believes that in its business, the less successful you are, the earlier you become profitable. By that definition, the Cambridge-based Internet service and software supplier is still on course for success. The Unipalm software business’s pre-tax profits of ú1.5m were partially offset by the Internet service arm Pipex’s losses of ú1.1m, to produce group pre-tax profits up 63% to ú442,000, from turnover up 65% at ú17.8m. This is the last time the figures will be split as the two units were merged after the year-end to form Unipalm Pipex (CI No 2,691). Group managing director Peter Dawe is of the opinion that the Internet will sweep all before it as a business communications medium in the next few years, and the group strategy is to get as many subscribers as possible as quickly as possible. In the 12 months to the end of June, corporate customers rose from 255 to 654. The group will continue to invest in the Pipex business to secure long-term profits. The Pipex business is still on schedule for profitability by 2000, according to Dawe. Capital expendit ure last year came to around ú3m: this is likely to rise to between ú4m and ú5m this year, according to finance and commercial director Chris Batterham. Cash balances were ú4.0m at the end of the year. Dawe reckoned the company still had some 70% to 80% of the corporate Internet access business in the UK. Pipex International, set up last November (CI No 2,531) now reaches 15 countries in Europe and beyond. The group took minority stakes in three companies, in South Africa, Belgium and Hungary (CI No 2,684). Last year’s revenues included the $2.5m gained from licensing the Mail-IT Internet electronic mail software to FTP Software Inc (CI No 2,507). At the end of the year, the company launched Pipex Dial, its Internet access software aimed at the individual user (CI No 2,661). The marketing of the product, mainly through free disks on magazine covers, will affect the first half figures this year, but the second half will start to see the benefits, according to Dawe. He said that he was excited and optimistic about the future. As long as cash flow is managed, we can continue in this growth phase: it’s all about customer base and turnover, he said. Unipalm will pay no dividend.
