Sherwood Computer Services Plc has reported record year-end profits of UKP2.2m on UKP25.4m turnover, a sharp recovery on the UKP2m loss on UKP26.5m in 1988. The company has reorganised its activities and disposed of the loss-making Mitronix for UKP300,000 (CI No 1,281), and sold the Slipstream reinsurance system to an anonymous joint developer for UKP750,000. Sherwood has divided its operations into two divisions, business systems and computer services. Business systems comprises Lloyd’s and London Insurance, local government, and financial services; the last represents 15% of turnover, but it made a loss in what Sherwood describes as a difficult year. High interest rates affected plans for the mortgage market, and that unit is now focusing on personal pensions and retail financial systems, although repeat business constitutes 70% of revenue. Local government contracts are handled by Sherwood Public Services, formerly known as LG Software and Corporate Technology, and it contributes 16% of turnover. The division has returned to profitability and is strengthening its ties with ICL. It is marketing ICL’s community charge system, and Sherwood’s housing management system is to be marketed with ICL’s DRS 6000 Unix machines. Sherwood Insurance Systems represents 57% of group turnover and primarily services the Lloyd’s marketplace. Like the financial service division, the level of repeat business is very high – currently 70%. The main products are Sceptre, Senator, and Shares. Sceptre is targeted at Lloyd’s market, Senator is an insurance product, and Shares is for Lloyd’s managing and members agents. The second arm of the Sherwood group is the computer services division. It provides stand-by and disaster recovery facilities, facilities management, bureau services, technical consultancy, and communications. The majority of service contracts run between three and five years, and it expects rapid growth in the local government market. The primary product is Vista, electronic data interchange software that links computer systems. Sherwood Software Services is a subcontractor for much of ICL’s Unix development, and Sherwood has invested UKP2m over the past year in software work. The disaster recovery facilities also received a significant boost with a UKP3m investment and the establishment of a second centre in Leeds (CI No 1,381). It is collaborating with ICL France, and has one French client subscribing to the Leeds-based recovery service. Sherwood says its workforce has been reduced to 475 from 600, but it is looking to treble the salesforce to 50 by year-end, and is keen to acquire a Unix or service-based company.
