Pegasus Group Plc – formerly Brikat – unexpectedly reported first half figures on Friday, showing pre-tax profits up a modest 3.5% – but the results were dragged down by the need to get its loss-making Sphinx Ltd Unix software and services business into line. In turnover terms, the Pegasus Software accounting software business grew 30% to UKP3.8m and the Pegasus Supplies side grew 24% to UKP1.2m in the half year. Sphinx chipped in UKP2.8m of business but while trading losses were progressively reduced – except for a blip in December – the company was still not trading profitably at the end of the period. The Maidenhead business has now been split into two units – services, and third party software distribution, with the former getting the lion’s share of investment because training and consultancy are high-margin activities. Operating profits at Pegasus Software were trimmed by a UKP250,000 increase in research and development expenditure for new products that have not yet been launched. The company is drawing attention to its Supplies business by leaping aboard the fashionable green bandwaggon with the promotion of a brand of recycled computer paper.
