View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 27, 1998


By CBR Staff Writer

Following a series of profits warnings which have massacred the company’s share price, Microgen Holdings Plc, the UK-based information management and archiving company, has been forced to cut its dividend to preserve cash flows and is resorting to a share buy back program to reduce dividend costs. The shares fell a further 4 pence to 80 pence on the news, less than half their mid 1997 value. Net profits for the year to October 31 were down 41% at 3.5m pounds and revenue fell 10% to 66m pounds as the group’s revenue from its old core product of computer output to microfilm (COM) continues to dwindle. The strength of sterling took a chunk out of revenues and earnings again (50% of revenues derive from Germany and the Nordic countries) and Microgen is warning of a similar story for the current period with sterling up 10% to 15% on this time last year. But while COM revenues fell by 8m pounds, the groups successful Information Management Services division grew by 11% (in constant currency terms). And the newly developed Axess electronic document storage system, which the company has been pouring funds into, has now generated 650,000 pounds of revenues and is predicted to break even by 1999. Axess uses a browser front end to view high-volume documents converted to electronic format, such as invoices, which are stored on RAID drives for around three months. After this initial period, the need for access becomes less likely and the information is committed to the more traditional format of micro fiche. The system currently centers around invoice storage and circulation of internal company documents, but will be extended to cover other applications. Axess is live at only eight sites at present, and its uptake will be crucial to Microgen if the share price is ever to recover.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.