As warned (CI No 2,451) the full year results of Betacom Plc of Enfield, Middlesex, were hit by supply problems with its cordless phones, and lack of interest from consumers. Betacom, where Amstrad Plc holds 60%, saw pre-tax profits fall 60.7% to UKP203,000 on turnover up 11.9% at UKP13.5m. The failure to translate increased revenues into profit came as customers bought cheaper, lower feature and lower margin products. Margins were also depressed as retail customers refused to accept higher costs after Sterling’s devaluation and competition from British Telecommunications Plc. Betacom regards this competition, which forced it to reprice the new Roma range of cordless phones, as unfair and says it is hoping for a favourable outcome from the Office of Telecommunications’ investigation into the cross-subsidisation of BT’s equipment supply business. In the last six months Betacom has sought to expand its offering and will launch two portable home security products this Autumn. Betacom is also expanding in Europe, and signed a distribution deal with Amstrad for Germany, shortly before year-end. There is no full-year dividend.
