Skillsgroup Plc, the Cheshire, UK-based IT services company, has issued a profit warning, citing Year 2000 lockdowns on IT spending. The company said that earlier growth forecasts of 45% to 50% should be modified to about 25% to 30%. The company’s prospects seem to have suffered a slight sea-change, as, in its first-half financial results in July (CI No 3,695), chairman David Southworth said that the outlook for the next three-to-five years was very exciting.
However, Skillsgroup did have some positive news, announcing an expanded business intelligence reselling arm, with the acquisition of a Business Objects reseller to add to its existing Cognos business. Stockport-based GA Information Systems Ltd will cost Skillsgroup up to 11m pounds ($18.1m), with an initial payment of 7.9m pounds ($13m) in cash and loan notes, and 3.1m pounds ($5.1m) pending the continued employment of key GA staff for three years.
Skillsgroup bought its way into BI earlier this year, acquiring Information Systems Ltd, which resells Cognos software to the small to medium-sized enterprise market. GA will give Skillsgroup dominant critical mass in the BI reseller market to compete against smaller players like Druid, FI Group and Kaisha, said a company spokesperson.
The firm also completed the sale of its Swedish knowledge management subsidiary. The management of Synergica AB will pay 1m SEK ($122,000) for the company, which recorded revenue of 17m SEK ($2m).
