Radlett, Hertfordshire-based Microgen Holdings Plc has reported a fall of 14% to UKP7.3m in pre-tax profits for the financial year to October 31 on turnover up 1% at UKP47.7m (CI No 1,840). Chairman Douglas Lee attributes the fall in profits to the UK company and says that costs and capital expenditures were running ahead of revenues in both the core businesses and new services. Microgen is a victim of the slump in the property market in its failed attempts to shed unoccupied company premises, which cost the company a thumping UKP525,000 in the year. Finance director Gerry Liddle says that the subsequent scrutiny of all areas of the company resulted in a UKP300,000 rationalisation plan that included 25 UK redundancies across the board, leaving 410 UK employees. Liddle declined to detail the two new services, suffice to say that they fall into the laser printer and ancillary service areas. He is confident that they will prove to be successful and adds that they will be subject to a test-sell over the next two months. With respect to the Scandinavian operations, Liddle explains that the recession caught the country unawares. He points out that the sale of the equipment and supplies operation in October 1991 (CI No 1,796) means that the companies can now concentrate fully on the core businesses. Capella Finland Oy has recently taken over the computer output microfilm department of a major Finnish bank and the five-year contract, the largest ever for Microgen, is expected to produce revenue of about UKP3m per year, according to Lee. The German company has had a good year, according to Liddle, in that sales of the Invoice Management Service have been going well. He expects sales to reach UKP600,000 during the next financial year. Lee signs off with the familiar lament, that the company will grow as the recession recedes.
