Kalamazoo Computer Group Plc was never going to be able to achieve in 1994-95 the dramatic leap it saw the previous year, as that was coming from a very low base following the company’s turnaround. Nevertheless, the Quaker-inspired Birmingham-based computer services and print systems group has consolidated its position since then by returning healthy, if unspectacular results in a year in which it completed three acquistions. Pre-tax profits for the year to March 31 rose 7% to ú6.8m from turnover that was virtually unchanged at ú60.7m. Kalamazoo Motor Trade, which is part of the computer division, generated revenues up 9% at ú29.9m in a difficult European market that is seeing dealer franchises grow in size and shrink in number. But this, according to chairman Peter Harrop, is good news for the company. Its Elite Oracle-based vehicle dealer management system, which the company claims does everything from handling invoicing to predicting what model of car you will want next year, is aimed at franchises with more than 50 users spread across multiple sites. It won two major contracts in the year, from Lookers Plc and Arnold Clark Automobiles. An agreement is thought to be imminent for Elite to be marketed in South Africa, and the company says there has also been interest from the Middle and Far East as well as the Caribbean. A system for smaller dealers will be released this year. Finance director Ian Davidson warned that investment and support costs for Elite will continue this year. CBA/Nederland BV, having purchased the customer base of MAI Systems Corp in January (CI No 2,577), doubled its profits to ú300,000, and Kalamazoo now claims to be number one in the Netherlands as well as the UK. Harrop is hoping that he is a man that you would buy a used-car valuation system from, as the company has produced Autoscan, in conjunction with Glass’s Guides, the bible for anyone wanting to buy a used car. The margins for dealers on used cars are greater than they are for new cars, and once it is released in the autumn he is expecting a good take-up in what is a growing business across Europe.
Security printing
Partnerships are planned to get Autoscan to market. Kalamazoo Computer Solutions, the other part of the division, was hit by the government’s insistence that it not only trained unemployed people, but found them a job as well. Six training centres were closed in the year, and six remain. One of the Training & Enterprise Councils, as the centres are known, actually went in to liquidation accidentally, costing the group ú50,000, said Davidson. Refurbishment costs for the remainder will amount to ú300,000 this year. Turnover at Computer Solutions was ú13.9m, a fall of 21%. It covers a wide range of services, including disaster recovery, installation and health checks, and Harrop said that more focus is needed. He regards the purchase of WIS Computer Systems L td – now renamed Kalamazoo Answer Ltd – for a total consideration of ú6m (CI No 2,548) as the best the company has made. Its Answer specialist process manufacturing system, which is accounting-centred but does a whole lot more, is the kind of niche product Kalamazoo will go after, rather than the rather unusual acquisitions in faraway pla ces of years gone by. Kalamazoo System Print increased profits by 7% to ú2.5m as turnover slipped 6% to ú17.0m. Of that, around ú11m still comes from forms, but not for long. Security printing is the future, what with people busy photocopying insurance certificates and tax discs. A mixture of technological advances and a pinch of paranoia, has led to numerous emerging security printing markets, which Harrop believes the group is well placed to exploit. GMS Tickets was purchased in January (CI No 2,575), which supplies tickets for most English Premier League soccer ball games. The group says that it is prepared to make further acqusitions in this sector, though these will not be as large as those in the other businesses. Harrop said that there were stil l plenty of opportunities in the motor trade. A push into Europe
is essential, he believes. Unlike some companies that feel they can stay in their rabbit hole with their paws over their eyes he does not want Kalamazoo to expand in the UK while ignoring the continent. The final dividend of 2.75 pence makes a total of 3.75 pence for the year, an increase of 14% on last time.
