SD-Scicon Plc, the software company still fending off hostile bids from Cray Electronic Holdings Plc and Electronic Data Systems Corp, EDS, has turned in interim pre-tax profits of UKP5.9m, against UKP9.8m losses last time, on turnover that fell 6.5% to UKP129.2m. SD-Scicon UK’s contribution to sales fell to UKP65.3m, from UKP73.5m, while GFI Group accounted for UKP53.1m this time, up from UKP34.1m last time. The US group, meanwhile, saw its contribution drop to UKP10.7m, from UKP11.7m. Profit contributions followed much the same trend. Chairman John Jackson is proud of the group’s performance in the first half, saying that a strong trading performance was experienced in the UK, France and the US, particularly in May and June, and that this is indicativbe of the speed and strength of SD-Scicon’s recovery. In the UK, he notes, problems of fixed price contracts are now fragments in the background, while the company is winning good business in a bad market. In view of the group’s improvement, the board has decided that now is not the time to be selling shares, and the chairman states, sounding quite bitter, that EDS should be congratulated on having purchased their 25% holding at only 45 pence – they must be very happy. Jackson reckons the group is worth 76 pence per share at the very least, based on comparisons with other similar-sized companies, without a bid premium; at over 96 pence if all Scicon’s businesses are added together; and at much as 110 pence next to friendly bids for comparable firms. It is clear that EDS’ offer of 45 pence isn’t going to get a look in, and the board is urging shareholders to reject it outright.
