As we closed for press last night, MBS Plc anounced plans for a major step in its restructuring with acquisition of a grand old name of British industry, the Exchange Telegraph Company Ltd from the Extel Group Plc arm of United Newspapers Plc – for UKP1. The company comes with contracted annual maintenance revenue of UKP6m and MBS reckons that it reinforces the company’s position asnumber two in the UK third party maintenance market. Its customers include British Telecom, H M Treasury and the Press Association. Exchange Telegraph, with zero net assets, will have to make disposals to clear its debt, currently UKP2m. MBS also saysthat its operating profits on continuing operations were UKP1.2m in 1989, against UKP600,000 for 1988; including discontinued operations, the loss for the year was UKP4.9m, against UKP21m in 1988.
