Cray Electronics Holdings Plc saw profits fall and revenue rise in the six months to October 31. The large fall in profit, (pre-tax fell 56.2% to 7.8m, net plummeted 62.4% to UKP5.2m), was down to an extraordinary profit from the sale of business last fiscal year. Cray, which saw turnover climb 62.4% to UKP113.9m, has […]
Cray Electronics Holdings Plc saw profits fall and revenue rise in the six months to October 31. The large fall in profit, (pre-tax fell 56.2% to 7.8m, net plummeted 62.4% to UKP5.2m), was down to an extraordinary profit from the sale of business last fiscal year. Cray, which saw turnover climb 62.4% to UKP113.9m, has been busy this half; it has spent UKP1.1m to reorganise the Dowty data communications equipment businesses which it bought in for UKP50m from the TI Group (CI No 1,967). The group has also been digesting P-E International Plc, which it swallowed for a mixture of cash and Cray shares last September, (CI No 2,263). Cray has split P-E into two, absorbing the computer services arm into its own Cray Systems division and stripping out the management consultancy section of P-E as a seprate unit which it will use to draw in customers for Cray equipment. Although it has only been on the books for a month, the management consultancy has raked in a UKP32,000 profit on a turnover of UKP5.2m. It has also landed a contract in China. The Cray Systems division, handling space systems and integrated reservation and accounting, now has a revenue of UKP70m, but due to the late acquisition of P-E made a modest 18% of Cray’s turnover this year. It expanded its Brussels office to maximise European Community business and boasts increased activity in the financial market. The Communications Division contributed a more meaty 69%, fuelled by what Cray perceives as an increasing market interest in connecting local and wide area networks. Integrated network systems, now accounting for over 40% of sales, will be complemented by the firm’s FPX 2000 Communications Computer, which is an Asynchronous Transfer Mode hub. Finally, Cray Technology limped in last on 13% of turnover. This division, which absorbed some of the less profitable Dowty companies, is increasing its non-defence-related business to over 40%. The group is not actively looking to sell these weaker companies, which are involved in non-core business, but it will consider offers. The group sold off its build-to-print operation, Shrewsbury Technology, for UKP396,000, during the period. Financial director Jeff Harrison gave ballpark figures for the international performance of the group as a whole; 60% of revenue came from the UK, while the rest of Europe contributed 13%; 15% came from the Far East, while 12% came from the US, where the group has some old Case manufacturing operations. This 40% of export revenue is up from 33% last year. The dividend is increased by 50% to 0.75 pence.