Star Computer Group Plc’s chairman David Blechner has battened down the hatches now that the flurry of corporate activity within the group is over. Star Computer Group is to be a simple trading organisation from now on, with no plans for further disposals or acquisitions, he says. Following the recent results (CI No 1,829), Blechner explained that the disposals of United Health Services, Connect Data and Star Computer Services in February and March of 1991 garnered net profits of UKP839,000 which enabled the group to straighten out the balance sheet, cut out bank borrowing and put cash in the bank. This, coupled with cost-cutting measures, such as the weeding out of about 20 senior managers and reducing costs in every way that was sensible, has resulted in a leaner organisation. Star Group now has about 125 employees. Blechner says the Group is now a different sort of business, with the consolidation of recurring revenues from the core businesses, Pinnacle Computer Systems and Star Computers Ltd, covering 50% of overheads. These businesses are in a strong position, he says, because they are suppliers of software and services to specialist markets. Sales of Star’s Practice Management software to the accountancy profession have remained strong, he adds and Star’s Commercial Systems and Convergent Solutions divisions and the new legal division are holding their own. Pinnacle’s clients for its field service management software are blue chip companies in the main with large system and project management requirements. This means that sales tend to be high value with longer lead times, he says, although the outlook is positive both in the UK and overseas. Blechner is coy about press interest, explaining that he is running a low profile and successful business.
