Skillsgroup cashes in on past takeovers

Skillsgroup's results have been buoyed by several large acquisitions it previously made, as the company makes its transition from staff agency to IT training specialist.

As revealed in PC Dealer, Skillsgroup spent more than £70 million during March and April boosting its training capabilities, acquiring datacoms specialist The Knowledge Centre; IT consulting firm Pontis Consulting; and the UK education and training division of Cap Gemini.

According to David Southworth, chairman of Skillsgroup, the recently acquired businesses accounted for £1.5 million of the Lancashire company's operating profit and £5.9 million of its revenue for the half.

In the six months ended 31 May, it recorded a 46 per cent increase in pre-tax profit to £7.9 million and revenue of £96.4 million.

In a statement, Southworth said: 'The acquisitions have firmly established our resource management division as the market leader for information technology, technical and professional skills training.

'With these latest significant steps, the Group is now more clearly focused through a number of complementary activities which address the IT skills needs of large corporate customers.'

Skillsgroup's Enterprise Solutions (Acuma) business unit also performed well for the half, recording an increase in operating profit to £2.2 million from £1.8 million in 1998 as a result of a number of important customers implementing significant projects.

Southworth predicted Skillsgroup would 'satisfy market expectations' in its full-year results.

He added: 'The outlook for Skillsgroup now and for the next three to five years is very exciting as the benefits of the successful implementation of our corporate development programme come through.'

Driving Skillsgroup's turnaround in 1998 was the sale of its five product business - P&P UK Desktop, P&P Rentals, P&P Belgium and Acuma PSL.