BASF AG-owned Comparex Informationssyteme GmbH has reported its first full year results since the restructuring programme that began last autumn. Pre-tax profits for the year ended December 1993 stood at the equivalent of UKP7.3m compared with UKP12.4m last time on turnover that rose 7% to UKP486.8m. The precise cost of the restructuring is difficult to […]
BASF AG-owned Comparex Informationssyteme GmbH has reported its first full year results since the restructuring programme that began last autumn. Pre-tax profits for the year ended December 1993 stood at the equivalent of UKP7.3m compared with UKP12.4m last time on turnover that rose 7% to UKP486.8m. The precise cost of the restructuring is difficult to pin down, but is in the region of UKP13m, all of which is taken into the accounts for the 1993 year end figure. Turnover at Comparex in Germany was up around 8% to UKP242m while sales in export markets were up 5% to UKP244.8m. Company chairman Rolf Brillinger, when talking of the future plans of the company, asserted that it did not see the mainframe as dead. The company saw an increase of 20% in the sales of mainframes during the year to account for 41% of turnover, or UKP199m, up from 36% of turnover. In response to IBM Corp’s newly announced initiative Comparex said it too will be offering technology along similar lines in competition. Work started in this area a long time ago and announcements to this effect will be made over the next few months. Maintenance and service revenues were similar to the previous year at UKP90m or 18% of sales. Peripheral systems were less successful, seeing a fall of around 3% to UKP197.6m, while rental business fell by UKP9.6m to UKP138m. The non-aggression pact signed between BASF AG and Hitachi Ltd in November last year has meant that Hitachi Data Systems and Comparex are no longer competing in the same markets. Comparex now has sole sales responsibility for Germany, Belgium, the Netherlands, Luxembourg, Austria, Spain, Portugal, Greece, South Africa and all of Eastern Europe, including Russia. The sales activities of the other Comparex operations, including those in Great Britain, were discontinued at the end of last year and account for the substantial restructuring costs. Once the restructuring process is fully completed, total company staff numbers will have fallen by 250 to 1,030. Brillinger was not overly optimistic about the end of the recession and therefore diplomatic about the prospects for the current year. It is expected that the performance of the preceding year will be hard to maintain and this is also suggested by the sluggish order book so far this year, so the company is cautiously optimistic about results for the current year.