UK computer hardware and software supplier Vistec Group Plc expects to increase profitability to UKP2.5m by the end of the its fiscal year through expansion of its core businesses both by acquisition and increasing market share (CI No 2,062). The company wants to expand its position in the network and communications markets, as well as […]
UK computer hardware and software supplier Vistec Group Plc expects to increase profitability to UKP2.5m by the end of the its fiscal year through expansion of its core businesses both by acquisition and increasing market share (CI No 2,062). The company wants to expand its position in the network and communications markets, as well as enhancing market share by acquisition in the networking communication hardware and software sectors and personal computer support markets. However, Vistec’s search for lucrative takeovers has so far been fruitless. The policy of acquisition will financed by the UKP4.2m it has in the bank. But while Vistec believes that buying companies will increase revenues earlier, it is not that worried about not spending its hard-earned money. The cash, says chairman Bob Morton, will enable the company to weather the recession if the continuing adverse economic climate persists. It is holding out for the right buy and the right price: Morton says It is very easy to buy companies cheap at the moment, but very hard to sell if you make the wrong decision. Vistec has looked at over a hundred companies in the past year with dismay. Eager to expand its market share and buy British, Vistec has found British-based computing firms to be some of the worst hit by the recession – wonderfully cheap but unfortunately most unattractive to buy because of their huge debts. The Belper, Derbyshire company says it is unwilling to burden itself with unduly debt-ridden companies for the sake of expansion.
However, it expects its acquisition from Pegasus Ltd in July 1990 (CI No 1,567) of Unix software distribution house Sphinx Ltd – now called Sphinx Level V Ltd – to generate more than UKP1m profits in this financial year. Sphinx sells Santa Cruz Operation Inc, Uniplex Ltd and Uniface Corp software. Vistec’s most recent takeover, Ceemore Ltd, a software comunications specialist bought for UKP250,000 from AIMsoft Ltd last October, has not impacted the company’s revenues so far. Vistec says it should see returns on its investment here by next year. Ceemore Ltd is now part of Sphinx Level V. Vistec expects to get UKP2.5m in profits from its three other businesses this year. At end of year 1991, Vistec showed a pre-tax just under UKP2m – net profit of just UKP1.7m – on turnover down 14% at UKP31m. The core businesses that have increased Vistec’s profitability comprises the software distribution company Sphinx Level V; a Corporate Hardware Sales division, which sells IBM-compatible personal computers and Compaq Computer Corp systems; Vistec Engineering Services, a support and maintenance division and the Software Solutions division, which sells and develops software. Perhaps the last of the breed – and mindful of the still-growing band of adventurers that have come a horrible cropper in some foreign field, British bulldog Vistec has not been tempted to look outside the UK for expansion. Morton believes that the UK has vast opportunities for companies to exploit. We have not been tempted to set up operations or buy on the continent or the US. Vistec’s success has been its focus on supplying our core markets only, he said.