Open systems house JBA Holdings has expanded outside of the UK following its purchase of the largest AS/400 distributor in France, Presys, for #10.8 million.
The purchase came two days after JBA Holdings announced its results, which it had been forced to postpone until last week. It emerged that the postponement was because of an accounting change.
Year-end figures to 31 December 1996 showed pre-tax profit up 57 per cent to #11.3 million on turnover up 31 per cent to #161.8 million. JBA?s stock price rose 45p to 720p on the announcement.
The takeover of Presys is in line with JBA?s strategy of expanding geographically while retaining its focus on the AS/400 platform. Despite offering open systems products, most of the firm?s revenue comes from the IBM minicomputer and, although JBA chairman Alan Vickery did not break down the percentages, executives do not expect the situation to change rapidly.
Although analysts and investors are in two minds about the long-term prospects of the AS/400 market, short-term most were convinced that buying into the French market via Presys would boost performance. The City is now predicting pre-tax profits of #14 million to #15 million this year, which would represent an increase of up to a third on the 1996 figure.
JBA?s 15th consecutive year of profit growth was driven primarily by strong markets in Europe, North America and Asia Pacific, said Vickery, despite the deflating effects of the strong pound and a change of accounting methods to conform to US law on recognising maintenance revenues.
Presys had a turnover of Fr184 million in 1996 with a profit of Fr9.4 million. It employs 300 people.
Nima Green asks what is driving public cloud uptake in Germany
In the wake of yet another lawsuit involving Oracle, we run through 10 of the vendor's biggest court battles
CEO Chuck Robbins says Cisco will use the Catalyst 9000 product range as a template for future launches
Today saw 14 of the UK IT channel's biggest hitters come together to determine the winners of CRN's WiC awards. But what does being a WiC judge actually involve? Doug Woodburn reports