Aerospace and avionics software house Marcol Group Plc, in which Smith Industries Plc took a stake earlier this year, will be valued at UKP16m when it comes to the Unlisted Securities Market next week. A far cry from the IBM System 3 and System 34 days, the company has just received a major boost from […]
Aerospace and avionics software house Marcol Group Plc, in which Smith Industries Plc took a stake earlier this year, will be valued at UKP16m when it comes to the Unlisted Securities Market next week. A far cry from the IBM System 3 and System 34 days, the company has just received a major boost from the successful launch last week of the Ariane-3 European space rocket for which it provided some of the software and the directors say the future is bright in both aerospace and avionics. Aerospace accounts for 36% of revenue while avionics produces 29%. The remaining 35% is primarily bodyshopping and, as Computer People Plc and Technology Project Services Plc have shown in recent weeks, that is also a rapidly growing market with good profits to be made. In the last financial year, to June 30 1987, Marcol produced pre-tax profits up 50% at UKP1.04m on turnover ahead by 30% at UKP6.17m. It will start listed life with an historic price-earnings ratio of 23.5 – not unreasonable judging by recent results from other software houses. The one thing that may worry investors is the fact that the vast majority of the 3,705,230m shares – 27% of the equity – being placed by broker Kleinwort Grieveson Securities are being sold by managing director Dr John Rigg and Grosvenor Venture Managers. The company is raising just UKP460,000 for itself – and much of that will disappear in expenses from the listing. The placing price is 115 pence per share.