Synon Ltd of Islington, London now considers itself the right size for flotation. The company has been in the news recently for becoming IBM’s first UK AD/Cycle business partner (CI No 1,412) marketing the fourth generation language Synon/2. Since its establishment in 1983, the company has grown by around 200% per year, reporting pre-tax profit for the year to December 31 1989 up 327% to UKP6.8m on turnover up 233% to UKP21.5m. Growth over the past year has been fuelled by the company’s US operation which contributes just under 50% of its turnover and which has a two-year lag behind the UK in market penetration. Over the year, Synon’s debtors have grown by 74% to represent UKP8.2m – this reflects the company’s growth in European business through distribution. At the same time Synon’s creditors appear to have grown by 533% to represent UKP13.8m. In fact, while there has been some growth in the amount the company owes, the real change lies in accounting practices. For Synon has reclassified its operating leases as financial leases in an effort to bring the company in line with the reporting requirements of a quoted company. Synon’s Simon Williams says that the company is ready to float at any time, but it has yet to choose its moment. As for IBM taking that probable equity stake in Synon, the company had no comment to make.
