Watford, Hertfordshire-based Star Computer Group Plc, which likes to release its results as late as possible on the day they are due, has reported pre-tax losses of UKP2m, up from UKP1m last time, for the year to June 30, on sales that fell 3% to UKP14m. The two chairmen, David Blechner and Jack Schumann, admit that the results are very disappointing and blame the economy for the group’s poor performance. In an attempt to turn the company around, Star has decided to focus on its two core activities Pinnacle Computer Systems, which has returned to profitability since the year end, and Star Computers, which is expected to be profitable in the second quarter. The company sold off United Health Care Systems to ICL in October for UKP120,000, and is currently negotiating the sale of cabling companies – Mike Whitaker, Star’s financial advisor, expects that this sale will take place in a matter of weeks. Furthermore, Star has decided to sell its hardware maintenance business, Star Computer Services, to a management buy-out team with which the group intends to keep close contact – it is expected that shareholders’ approval will be required for this disposal, and the sale is anticipated to be finalised in January. Following their completion, the disposals are expected to leave the group debt free and with a strengthened balance sheet and Star hopes that the streamlined company will see a return to profitability in the current fiscal year.
