IBM software and services house Synapse Computer Services Plc, based in Berkhamsted, Hertfordshire has come in at the interim stage with a pre-tax loss of UKP974,000, up from a UKP249,000 loss last time, on turnover up 11.5% to UKP5.2m. The losses were attributed to customers deferring capital expenditure, which has particularly hit the mid-range business Beacon Management Services, and to the Italian subsidiary taking longer to find its feet than had been anticipated. Steps are now being taken to rectify both problems: an extraordinary loss of UKP51,000 is included in the results, representing the proposed sale of a majority shareholding in the Italian subsidiary to its management. Meanwhile 20 jobs within the group have gone, mainly from Beacon, and restructuring has cost the company a further UKP231,000, expressed in the figures as excep-tional items. On a happier note Synapse’s IBM mainframe business has improved and the US subsidiary is reported to be ahead of budget. It sees a further opportunity in the trend towards outsourcing. Because such a huge loss impacts the group’s liquidity and balance sheet it has decided to ask its shareholders for more cash by way of a four-for-seven rights issue at 72 pence a share – against a price in the market of 106 pence – to raise UKP1.35m. Irrevocable commitments to subscribe for half the shares have been received from Synapse directors and 24.5% shareholder Delimar Ltd and the balance is being underwritten by Societe Generale Strauss Turnbull Securities Ltd.
