Synapse Computer Services Plc plunged to a shock UKP249,000 pre-tax loss for the six months to January (see Company Results), and says that the main reason was that it encountered exceptional adverse trading conditions in the US – but the company says that its UK interests suffered from a sluggish market in line with many software organisations as well. The company says hopefully that it has seen an upturn in demand for its technical services and software conversion services, and that it is succeeding in increasing its revenue from its customer base following its diversification into installation management and consultancy services. It also has a number of orders for its OS/VS Cobol conversion product which converts earlier versions to VS Cobol II. The company is guardedly pleased with its Westwood Information Technology acquisition, which is already showing signs of meeting the investment criteria set by the board, and has five orders in hand for a new product completed in January. The company reports that the orders it expected in the US have failed to materialise but it is sticking with the US market and looking at its sales and marketing strategy there to see whether they are ways to overcome what it sees as a short-term problem. It has also opened an office in Rome as an early move in its plans for the continent. And in December it moved down into the IBM AS/400 market with the acquisition of Beacon Management Services Ltd from Evode Group Plc: the company has orders in hand worth over UKP750,000 for this half.
