Post-MBO Actinic achieves first profit

Vendor hits profitability following management buy-out

E-commerce software vendor Actinic has finally emerged into profitability for the first time in its existence, following a management buy-out last year.

Actinic sells e-commerce frameworks via the channel. Formed in 1996, it grew rapidly and floated on the London Stock Exchange in May 2000.

Chris Barling, Actinic's chief executive, described his relief at being freed from public ownership.

"We had five directors; now there's just me. When we floated originally we raised £25m but inherited shareholders with massive expectations. We spent most of our time preparing for quarterly reports and telling shareholders why we hadn't met the inflated targets," he said.

Despite this, Barling does not advise new firms against floating on the Stock Exchange.

"The timing was wrong for us because our initial explosive growth was not sustainable, especially in the dot com backlash," he said.

Of the £25m raised, £10m has been returned to shareholders. Barling said the remaining £15m had been poured into a better customer service infrastructure.

"We didn't blow it all on Champagne, Concorde and caviar," Barling joked. "So compared to Boo.com, we wasted it."

David Dreaver, partnership manager at Worldpay, an e-commerce payment service provider and Actinic partner, said: "The people who survived the downturn will do well. Actinic is a key market player now."