Milton Keynes-based Harland Simon Plc has plunged UKP6.3m into the red at year end against the UKP9.9m pre-tax profit figures a year ago. The reasons for this sad demise are said to be bad debts, difficulties at Perfect Information Ltd, losses at NEF and Pro-Aqua and inadequate order input. Exceptional provision for these items amounted to UKP8.6m. Current company chairman is David Mahony following the resignation of Ray Ashman as chairman in February when shareholders were alerted to the problems affecting the group. Mahony has decided that the primary focus of Harland Simon should be on the electrical and electronic businesses and that the mechanically-based businesses serving the paper and water industries were therefore not core. So, Vickereys has been sold – subject to an Office of Fair Trading clearance – for UKP8.1m. Discussions are also in progress to sell NEF and Pro-Aqua as as these do not fall in with the core business plan. However, electronic drives system maker Contraves Drives is also about to leave Harland Simon as Mahony feels it would be more comfortable in a products company rather than the systems company Harland Simon aspires to be. The group has restructured Contraves to build its profitability and negotiations are said to be at an advanced stage with an appropriate purchaser. Harland Simon now owns or has commitments for 63% of Perfect Information Ltd but Harland Simon and ex-chairman Ray Ashman are having difficulty reaching agreement over Ashman’s 27% stake. Perfect Information was Ashman’s baby and provided on-line information to city firms. The venture was always speculative but Harland Simon admits that its subsidiary Harland Simon Library Systems designed software for Perfect Information that caused serious technical problems. The group has pledged to strengthen management control of Perfect Information when it gains majority control of the company with a view to selling it during the next six months. A much reduced Harland Simon is looking to restructure, board changes are under way but profitability is unlikely to be reached in the current year. Dividends have been suspended until it is prudent to resume them.
