Following a near miss as Ferrari Holdings Plc attempted to back into it at the end of last year (CI Nos 1,315, 1,318), Slough-based MBS Plc (the third party maintenance rump of the company that was left after the sales and distribution side went to a management buyout) has succeeded in swelling its size by acquiring VISIsystems Ltd of Sutton, Surrey for up to UKP2.4m. VISIsystems is a niche software house that specialises in installing computer systems for franchised motor dealerships and petrol forecourts. In the year ended March 31 1989 the company reported pre-tax profits of UKP180,000 on turnover of UKP4.4m. MBS itself posted a loss of UKP7m on a turnover of UKP8m at its interim stage in November (CI No 1,296). Assuming that VISIsystems hits its pre-tax profit target of UKP250,000 for the year ending March 30 1990, MBS will make an initial cash payment of UKP750,000 for the company. On March 30 1991 a cash sum of not more than the aggregate of VISIsystems’ net assets plus a premium of UKP100,000 will be payable, while a further cash payment will be due on March 30 1992 or 1993 based on a multiple of six times the software house’s net profits above the UKP208,333 mark. VISIsystems will operate autonomously for two to three years as the financial transactions are carried out, but in the meantime MBS Engineering hopes to sell third party maintenance into VISIsystems’ sites. The software house has 1,000 of its systems installed and includes among its customers a large number of Volvo and Fiat dealers. MBS has also announced the appointment of David Ewart as a non-executive director fresh from his position as group finance director for Morgan Grenfell. This follows on the heels of the appointment of Morgan Grenfell as MBS’s financial advisors and Laing & Cruikshank as its stockbrokers. The reason for this flurry of appointments by the troubled maintenance supplier is said to be the need to build relationships in the City.
