For electro-optics and flexible circuit board manufacturer Cambridge Electronic Industries Plc, as for most other components suppliers, 1990 was a year of restructuring and reorganisation. The previously vast array of 18 different businesses areas that Cambridge Electronic addressed has now been reduced to a more sensible seven – medical, controls, instruments, manufacturing service and defence being the company’s five pet market sectors. After excluding profits from the sale of surplus properties, says chairman John Jackson, profits increased to UKP10m from UKP1m in 1989. The turnover figure (alongside) includes UKP34m from businesses that were divested over the year – Cambridge disposed of its electronic components businesses during the first half (CI No 1,495), as well as Belling Lee Intec – these generated proceeds of just over UKP37m. Business closure costs for the year amounted to UKP300,000, added to a restructuring provision of UKP1.7m and UKP800,000 losses from the sale of a trade investment – the group’s 49% holding in Tamura Hinchley. Star performers of the year were the medical businesses and defence activities. The medical operations, which included a full year contribution from the two companies, Rigel and GIPCI, acquired in 1989, turned in revenues up 30% at UKP13m. Boosted by the Gulf War, the figures for defence were better than expected – sales were down 16% at UKP22.5m, although trading profit rose 9% to UKP3m. Controls turned in a disappointing result, with a slowdown in the capital goods market affecting variable speed drive sales. Instruments, including instrumentation and electro-optics, increased sales by 7% and operating profit by UKP400,000. Manufacturing service, including flexible circuits, was hard hit by trading conditions and turned in operating profits down 30% at UKP1.4m – sales fell 1% to UKP22m. As part of the group’s strategy to re-focus from low-margin to high-margin added-value electronic products, three acquisitions were made in the US over the year – a control products business now trading as Tasc Drives Inc was bought in January for UKP2.3m and Volkmann Electric Drives in September for UKP3.2m. And UDT Instruments, a business specialising in electro-optics, was purchased in July for UKP1.6m.