Quality Software Products Plc’s first year-end results following its flotation were disappointing, still showing the effects of investment in its flagship Universal OLAS accounting software. The company, which floated last April, (CI No 2,101), has been grooming the product as a successor to its existing OLAS software, and has spend UKP1.3m in the year appointing […]
Quality Software Products Plc’s first year-end results following its flotation were disappointing, still showing the effects of investment in its flagship Universal OLAS accounting software. The company, which floated last April, (CI No 2,101), has been grooming the product as a successor to its existing OLAS software, and has spend UKP1.3m in the year appointing a team of 30 support workers and a 10-strong sales and marketing team to push it into the market. Four modules for the system supporting IBM Corp mainframes, the RS/6000, Sun Microsystems Inc and Sequent Computer Systems Corp machines have been developed, and a further three are being produced – two in 1994, one in 1995. The modules support the DB2, Oracle and Sybase relational database systems, but according to the firm, the system is flexible enough to generate modules for any machine in three months. The company has already signed customers for the system, including Swiss Bank Corp, Sheffield Hallam, Britannia Airways, Express Gifts, Moray District Council and the North of England Building Society. The Commonwealth Bank in Australia was also signed in a UKP474,000 contract which boosted Australia’s contribution to group sales to 18% from 10% in the first half. A large proportion of the contracts signed used the product running on an RS/6000 with Oracle. In spite of these contracts, the UKP4m spent on product development, (a further UKP3m will be spent next year), has forced profits down 54% to UKP553,244 in spite of sales up 1.8% to UKP13.4m. The firm used tax credits, so pre-tax and net profits were equal. Universal OLAS, which uses the company’s Multi Cross Platform Engineering technology to become operating system independant, is also the subject of two marketing agreements; Quality’s agreement with the Continuum Co Inc insurance software house is effectively a software OEM agreement where Continuum will sell the software integrated with its own products to markets outside the US. It has already sold the hardware to a European and an Australian insurance group. Meanwhile the firm’s recent deal with Global Software Inc where it acquired 5% of the latter for no outlay, gives it a channel into the US – Global will sell Universal OLAS to its own customer base and give 45% of the profits to Quality, (CI No 2,359). Quality also signed with the International Air Transport Association for joint sales of the product to the airline industry, and is looking to appoint other partners like Global in Europe and the Far East. The firm says that the order book for Universal OLAS looks good for next year, with the number of leads 400% larger than last time. Gearing is down to 33% from 72%, and it has has UKP1.4m in the bank; final dividend is 1.25p.