Romford, Essex-based software and services group Sherwood Computer Services Plc has sold its motor insurance subsidiary Sherwood Mitronix Ltd to Policymaster Plc for up to UKP300,000. Mitronix was acquired by Sherwood in May 1987, and its purchase was one of the contributory factors leading to the Sherwood group’s disastrous fall from City grace over the past year, culminating in a reported net loss of UKP1.9m for the year to December 31 1989. The rot officially set in during August last year when Sherwood warned that it was expecting to make an interim loss of UKP1.5m, and blamed its flagging fortunes on the acquisition of Mitronix and of Corporate Technology Group. The latter company was acquired in March 1987, and looked more the non-starter of the two, since it specialised in software for local authorities and soon found itself wrongfooted by the impending implementation of the community charge. However, Corporate Technology was given a new identity – its name was changed to Sherwood Public Services and it shifted its focus away from IBM hardware and started supporting ICL and Bull machines. Mitronix, on the other hand, found its profit margins being squeezed tighter and tighter. Redundancies became the order of the day but Mitronix’ performance did not improve. During the year to December 31 1989 it incurred net losses of UKP920,000. The sale of Mitronix has, according to Sherwood’s financial director, David Lawrence, strengthened the company’s balance sheet through the first payment from Policymaster of UKP150,000. The Sherwood group now has UKP3m in assets, and says it welcomes its restructuring. Sherwood is now composed of six companies: the holding company, Sherwood Computer Services Plc Group, Sherwood Computer Centre which offers a bureau service for the insurance market, Sherwood Network Services, Sherwood Public Services and the disaster recovery division Sherwood Computer Management. These companies focus their energies on the local government, retail financial services and the Lloyd’s of London insurance sectors.
