CCL still budgeting for better result

Press, 20 August 1986, Page 36

CCL still budgeting for better result

Wellington reporter Computer Consultants, Ltd, directors are still budgeting for an improved performance despite the difficult trading conditions, the chairman, Mr John Holdsworth, told shareholders in Wellington yesterday. “With its strong cash flow and improved balance sheet, the group is well placed to take advantage of investment opportunities in the coming year,” he told the annual general meeting. The meeting is traditionally one of the quickest of the year, and this year was no exception with the business being completed in under 14

minutes. Last year, Mr Holdsworth was gratified to have the first shareholder question ever in his years as chairman, but he had no such luck this year.

He pointed to the 30.8 per cent return on shareholders’ funds as the reason for the lack of questions. Last year it was 23.2 per cent. The equity ratio was improved to over 40 per cent during the year and Mr Holdsworth said he was hopeful that that would improve further during the year. During the year, CCI had divested itself of subsidiary and associate companies trading at the re-

tail end of the market. These were sold at book value and at no loss to the company. Funds released from the divestment have been reinvested in mainstream activities.

CCL Computing has acquired 25 per cent in Allied Computers, Ltd, a further 25 per cent of that company was issued to the developers of the successful Line software system. Mr Holdsworth said the investment was an important strategic move for CCL Computing, which has adopted the Line system in its data centre operations and has already established a Line software consulting com-

pany. The recently acquired company specialising in Unix systems is trading profitably. New business areas are also being developed in Fourth Estate Holdings, Ltd, publishers of the National Business Review. It has recently announced the launch of Personal Investment Magazine and has acquired a 50 per cent interest in the company which runs the Money Shows. CCL Computing and CCL Business Systems are performing ahead of last year’s result and it is expected that budgets for the first six months will be achieved.