Acorn Sows First Seeds Of Recovery

Acorn Computer Group has halved its pre-tax losses as it attempts to reposition itself as a technology developer and licensor, reducing its dependence on the educational market.

In the year to 31 December 1996, Acorn reported a pre-tax loss of #6.3 million last year, compared with its 1995 figure of #12.6 million. The company?s turnover fell last year by 21 per cent to #30 million from #38 million, as a result of the unprofitable schools IT arm, which is now an independent company, Xemplar.

Acorn attributed its recovery to a combination of expansion away from UK markets, movement into the interactive set-top box and internet device market and OEM and licensing partnerships.

Acorn MD David Lee said: ?The past year has shown how well-suited Acorn?s technologies are to the interactive networked multimedia markets. I am optimistic about the future for Acorn.?

Gary Johnson, Acorn finance director, said Acorn?s policy of selling direct to a core base of specialist dealers in vertical markets had ?always worked well?.