P&P abandons roots in name change exercise

The group no longer wants to be seen only as a reseller and is shifting focus to higher margin areas

P&P is trying to break away from its traditional image as a reseller by changing the company name to Skillsgroup.

The proposed change of name is intended to reflect the Lancashire-based company?s move away from box-shifting towards higher-margin businesses, such as training and consultancy.

Its reselling arm represents only about one-third of the group?s operating profits.

Nick Melvin, P&P marketing director, said: ?The name P&P leads people down the desktop line, which means they don?t think about the other 65 per cent of the group?s operating profit.?

The group has organised itself into three brands to emphasise its skills base: training and consultancy arm QA, which contributes 37.5 per cent of the group?s operating profit; mid-range business Acuma (including PSL), which contributes 26.9 per cent; and P&P Desktop (35.6 per cent).

Last week, it posted a 14 per cent hike in pre-tax profit to #14.3 million for the year ended 30 November 1996. Net profit went up by 17.3 per cent to #10.3 million.

By contrast, sales rose by less than one per cent to #344 million over the same period. Gross margins jumped from 21.6 per cent to 25.6 per cent. The group had net borrowings of #6 million.

Group chairman Sir Roland Smith was confident. ?1996 has seen a significant change in the business mix of the group,? he said. ?This has resulted in a stronger profit performance in the second half of the year, a pattern which the directors expect to continue during 1997.?

P&P ? named after the former social workers Pete and Pam Fisher who founded the company ? hopes to gain approval for the change of name from shareholders at the end of the month.

In addition, the company has bolstered its skills offerings abroad by buying Sweden?s top Lotus Notes consultancy operation, Synergica.