Belper, Derbyshire-based Vistec Group Plc appears in good shape following its restructuring and chairman Bob Morton’s promise that year end would produce UKP1m profit (CI No 1,567) was realised. Indeed, over the year pre-tax profit rose 11% to just under UKP2m on turnover down 14% to UKP31m. Furthermore, over the past six months the group has managed to eliminate its gearing, which stood at 55% at the interim stage, ending the year with net cash of UKP1.7m. The group is now structured into four divisions: distribution, corporate sales, engineering services and software solutions. Distribution trades under the Level V name and has now absorbed the Sphinx acquisition. Morton reports that the market for Unix software has been adversely affected in the past year by economic conditions, but believes that medium to long term growth is secure. The remaining three operating divisions trade under the Vistec Business Systems name and were the focus of the restructuring programme. Corporate sales and engineering services benefited from improved middle and senior management in the second half, but software solutions was hit by deferred customer spending plans. The group expects to grow organically over the next year and is looking for suitable acquisitions. Vistec is reasonably optimistic about the future but says its confidence is tempered by the current economic and political uncertainties which affect all of us.
