It seems that Microfilm Reprographics Plc is keeping up the momentum as far as acquisitions go; a policy that seems set to continue. To a greater or lesser extent, the London company has succeeded in moving away from being a pure microfilming bureau to become a more broadly-based data management bureau, with the emphasis on […]
It seems that Microfilm Reprographics Plc is keeping up the momentum as far as acquisitions go; a policy that seems set to continue. To a greater or lesser extent, the London company has succeeded in moving away from being a pure microfilming bureau to become a more broadly-based data management bureau, with the emphasis on facilities management. To reflect this, Microfilm is intent on changing its name, depending on the decision reached at its annual Meeting, to MR Data Management Plc. As regards recent acquisitions, Fort Knox Secured Data Storage Inc, Atlanta, Georgia, was purchased on July 31 this year for an initial consideration of $860,000, with a $300,000 consulting agreement to be paid to a former shareholder over a four year period. Fort Knox provides high-security storage and retrieval of paper and magnetic media, and Microfilm’s Atlanta offices are to relocate to Fort Knox’s premises, following the expiry of its lease on the current premises. As recently as September 14, the group also acquired NCR Corp’s Computer Output Microfilm bureau business for an initial cash payment of UKP1m. For the next 12 months, up to September 13 1993, a deferred consideration of UKP1 is to be paid for every UKP1 of Computer Output’s turnover, exceeding the UKP1m mark. For the year to November 31 1991, the bureau, which operates from four sites, saw revenues of UKP1.4m. By June 30 1993, however, all of Computer Output’s staff are to be transferred to local Microfilm sites. Other acquisitions made during the year consist of Memex Information Systems Ltd (CI No 1,774), Sol Microfilm Ltd and Micro Reid Ltd – both are bureau businesses, the former with operations in Rotheram and Scotland, and the latter with operations in Manchester – as well as DPTS Ltd, which specialises in services for the oil industry. Chairman John Redmond claims that the purchase of these companies represents an important step forward for the group. He believes that the new acquisitions will add significantly to the performance of the traditional microfilm business, by further expanding both the range and geographic spread of Microfilm’s services. With regard to this fiscal year, which ended June 30, the company saw pre-tax profits grow by 0.5% to UKP8.2m, while turnover fell 2% to UKP33.7m. This drop in turnover was attributed to a fall in sideline hardware sales, such as Canon Inc scanners and printers, as well as to the US dollar exchange rate. However, despite expenditure on acquisitions, cash in the bank is said to have increased by UKP1.8m to UKP8.3m. This is put down to the fact that Microfilm’s business is a cash-generative one, with minimal material costs, and also to the fact that all areas of business were profitable. Given the recessionary climate, Redmond was quite happy with his company’s results this time, and he is forecasting a particularly successful year ahead as a direct result of his array of new acquisitions.