UK-based MAID Plc interrupted its profitable progress with expected losses in a year in which the on-line business information company launched its Profound Windows-based service and floated on Nasdaq. Chief executive Dan Wagner could not resist the pun, describing 1995 as profound as the London-based company signed around 600 new corporate customers to reach 1,200, and added 55 content providers – and lost none, he emphasized. The Internet beckons for MAID, and Profound on the World Wide Web will be launched on March 28. Pre-tax losses were #4.0m, which included the effect of the #3.1m on pre-launch costs for Profound, the amortization of its development costs and around #5.2m related to improving the sales distribution and marketing operation. Turnover rose 54% to #13.6m, and subscription revenues climbed 65% to #5.9m of the total. Usage accounted for #6.8m and other sales were #871,000. NCM re-badges Profound for its client, and the deal is worth #4.5m over three years, most if which goes straight to the bottom line, according to Wagner. It plans to charge $198 per month subscription for up to five users – plus usage costs. MAID also signed a deal with Adobe Systems Inc during Profound development this year, and with Microsoft Corp, to provide business intelligence information to the Microsoft Network, but Wagner regards Microsoft Exchange as more a important and lucrative product from MAID’s point of view. MAID already has Profound available under Lotus Development Corp’s Notes and Wagner said the company is backing every horse as far as groupware goes, so if one breaks down and has to be shot, he feels the company will be able to adapt. MAID opened eight new offices during the year, and has 19 in all, plus eight agents, and recruited 70 sales staff in December and January this year in the US alone. The Nasdaq listing raised gross proceeds of $39.3m, or #25.6m, and cash stood at #22m on January 1 this year. Last month MAID took a 15% stake in Easynet Plc, the Internet access provider, and got three full-time Easynet people dedicated to MAID customers thrown in (CI No 2,856). MAID’s brokers ABN AMRO Hoare Govett Ltd are predicting break-even this year, after swallowing up #10m in the first half for the sales recruitment drive, from sales of #25.0m, and pre-tax profits of #12.5m from turnover of #56.0m in 1997. It is also forecasting 3,500 customers by the end of this year, and 7,500 by 1997. All the figures are without any own brand deals, such as the one with NCM, or any cash needed for alliances. And Hoare Govett reckons the customer base it predicts for MAID by 1997 will represent only 1% of the total worldwide market. MAID will pay no dividend this time, and the shares were off threepence at 192 pence.
