The microcomputer distribution company MBS Plc has plummeted into losses of UKP14m for 1988 as against profits of UKP5m made in the previous year. The announcement came with details of a proposed management buyout of MBS’ loss making Product Sales division. The buyout team Realnew which is headed by an MBS director, Derek Lewis, has agreed to buy the division for a consideration of around UKP28m. The company is also negotiating with interested parties for the sale of its specialist Altos division, Microtex. MBS took a further UKP7m loss on top the UKP14m on the withdrawal from personal computer distribution and its restructuring programme. Part of the company’s problems stem from its IBM related business, since IBM has been offering maximum discounts on many of its products. So long as MBS completes the management buyout by July 17 the company’s auditors say it can carry on trading. In future the greatly shrunken company plans to focus on providing computer and communications services.
