Quality Software Products Holdings Plc has turned itself around. Following a dismal couple of years, the Gateshead-based company has reached out and grabbed the huge opportunities for its software products presented by the introduction of the Euro and the impending Millenium. QSP sells modular accounting and financial software to big blue chip clients like UK retailers Asda Group Plc and Boots Co Plc. And if there is one area in which big corporate clients will spend money to ensure Year 2000 compliance, rest assured it will be the financials. Against such an inviting backdrop, QSP has struggled in the last two years, and the shares have suffered badly. But a radical board-level shake up last year has breathed new life into the company. Net profits for the year to December 31 rose sharply to 2.7m pounds from just 28,000 pounds last year while revenue rose 10.5% to 28.0m pounds; and the shares jumped 15% on the news to 545 pence. The increased profits came directly from controlling costs. Revenues rose 3m pounds, less than in either of the last two years, but costs remained static. Specializing in installations with hundreds of users, QSP has to compete with some of the biggest players in the software industry. But while QSP’s offerings are modular, the company isn’t an ERP vendor. It still specializes purely on the accounting functions. Group marketing director, David Pinches, said that lingering question marks over the duration of SAP-type installations still leaves many companies unwilling to go down this all-in, integrated route. And QSP ensures that its modules are easily linked to other packages, or to existing bespoke systems. Amongs its users, QSP’s software runs roughly 50/50 on Mainframe and Unix-based hardware, but a Windows NT version has now been developed, aimed at installations with a maximum of 100 users. No NT systems are live yet, but this mid-range foray marks new territory for QSP. The company has also seen an increase in the number of requests for facilities managed deals, where the administration of the whole accounting system is handed over to QSP for a fixed fee. The board has not recommended a final dividend.
