Datacom has record turnover

Press, 1 May 1984, Page 20

Datacom has record turnover

The national computer services company, Datacom Group, Ltd (until last week CBL Holdings, Ltd) achieved a record turnover for the year ended December, 1983. Group revenues rose 20.6 per cent to $22.2 million, while pre-tax profit rose 65 per cent to $1,372,455 — exceeding SIM for the first time. After-tax profit rose 79.1 per cent to $757,696. This represented an earnings rate of 38.3 per cent on average shareholders’ funds or 88.56 cents per share. After the lifting of the dividend freeze on February 29, the directors declared an 8 per cent interim dividend. At the annual general meeting, it was decided to make a one-for-one bonus issue. A final dividend of 12 per cent on ordinary capital was declared. The bonus issue lifts issued capital to $1,589,678. Staff numbers of the group expanded to over 300, including 16 senior executives who have been with the company for 10 years or more. In mid-1983, the Australian subsidiary was sold to Command Services Corporation. The group judged that the financial and management resources required to expand the operation successfully were better utilised in New Zealand. Dr Bernard Battersby, chief executive of the group, reported that expansion came from timeshare and network services which showed an increase of over 30 per cent on the previous year. At the end of 1983 the

company had installed in its main centres — Auckland, Hamilton, Wellington and Christchurch — a total of 27 PDP-11/70 computers and two VAX-11/780s. Some of these machines are now owned by clients and managed on their behalf by Datacom Systems. Outside of the banks and the Government, Datacom Systems is now running by far the largest computer timesharing service in New Zealand, servicing in excess of 700 terminals throughout the country. The directors decided to change the name of the company because they were concerned that the name CBL was an anonymous set of initials easily confused with many others in the industry. At the same time the directors had been concerned at the absence of any name link with the subsidiary Datacomm Equipment, Ltd. The directors recommended that the name Datacom be adopted as the group name, dropping the second “m” for succinctness. The holding company has taken the name Datacom Group, Ltd, and the four bureau-operating companies will be amalgamated under the name Datacom Systems, Ltd. Datacomm Equipment, Ltd, becomes Datacom Equipment, Ltd. Datacom Equipment, which supplies data communications equipment and associated engineering services, generated total revenues of SS.BM during 1983.