Kalamazoo Plc has turned in pre-tax profits for the year to July 31 of UKP1m compared to a loss of UKP4m in 1989, on turnover that fell 3% at UKP62.5m. According to chairman Kenneth Dibben, the group’s recovery confirms a return to profitability which is based on sustained sales by adapting to market requirements, control of costs and the discontinuance of unsuccessful businesses. Mike Langmore, managing director of Kalamazoo Computer Group, says the group has shed three loss-making companies this year – Broker Forms Ltd, a printing business; KADOS Direct Office Supplies; and Kalamazoo Distribution Ltd, a personal computer distribution company. The group is now split into two distinct halves – computing and printing. Dibben says group borrowings – amounting to almost UKP11m last year – have now been reduced to UKP2m, through the receipt of UKP1.7m from the sale of land and a policy of careful cash management, leaving Kalamazoo with a more healthy balance sheet which Dibben feels will provide the group with a secure basis for future growth by internal investment and acquisition. Around 60% of sales and profit contribution now come from computer related activities, he says, such as the supply of computer services to the motor trade, training and financial system arenas. The group’s focus for the future will be on product development and targeting mainland Europe – Kalamazoo Computer Group Plc is currently involved in discussions to deliver services to a number of North European companies, especially in Germany.
