Pre-tax profits at SD-Scicon Plc slumped 46% to UKP7.2m but the company puts the tumble down to major changes in strategic direction and internal organisation during the year which has led to the sale of its Warrington Financial Systems Inc in the US for $65m after the end of the financial year, and moves to create a much simplified European operation. Those that fear risky acquisitions should be reassured by a commitment to settle for organic growth, and joint ventures to expand on the continent. Breaking down the figures, European turnover grew 32.6% at UKP225.5m, US turnover rose 12.1% to UKP57.8m. At the operating level, European profits fell 55% to UKP4.1m, US profits fell 1.5% to UKP9.9m – but the US business had to be sacrificed to eliminate the excessive debt burden – in 1989, servicing the company’s borrowings cost it UKP3.1m, up 28%.
