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Autumn 2001
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Northgate Information Solutions held its AGM on 18th September 2001 at the Lincoln Centre, Lincoln’s Inn Fields, London UK. In his Chairman’s statement, Nicholas Irens announced new contracts, cost reductions and a company on track to meet its full year expectations.
In a largely upbeat address, Irens stated that the year ended 30 April 2001 represented the first full year with the new management team and saw a welcome return to profitability.
“I am delighted to report this financial year saw the return to profit for Northgate,” he said. “ The Group recorded an operating profit of £4.5 million on continuing operations before exceptional items and goodwill amortisation, compared with a loss of £11.1 million in the prior twelve-month comparative period.
“Turnover from continuing operations for the twelve month period was £106.4 million, compared with £96.3 million for the prior comparative period. The year closed with a net cash position of £7.3 million, providing the Group with strong financial backing. We have a strong and committed management team, and I would like to thank them and all Northgate employees for their dedication and enthusiasm in rising to meet the challenge of returning the group to profitability.”
Public sector business continued to expand, with Devon & Cornwall Police extending their IT Managed Service contract for a further three years, in an agreement wirth £2.5 million.
Northgate have also won a second new customer for their ‘joined-up government’ product E-Access. This builds on their continuing success in the Local Government IT outsourcing field, where they have won new business to the tune of over £10 million in the past year.
Irens stated that these successes confirmed Northgate’s strong position in the public sector. Adding to them were nine new customers for REsourceLink, which offers web-enabled personnel, payroll and HR solutions. These include the Royal Borough of Kensington and Chelsea, Bedfordshire Health Authority and Hampshire Police. Four of these customers have also signed outsourcing contracts for some of the HR processes with Northgate, increasing the amount of outsourcing work the Group does, in line with management’s strategy.
Less good was the news from the corporate sector, where demand for Northgate’s products and services has slowed considerably. This slowdown has been typical of the IT services sector in general, and Irens stated that capacity had been reduced to meet the lower levels of demand.
“The Company remains in a good financial position and I have every confidence that the management of Northgate will continue to deliver positive results from the restructured Group,” Irens concluded. “I believe that the Company is on the right track, in the right markets, and on course for continuing success.”
Northgate Information Solutions Boundary Way, Hemel HempsteadLast Updated: 29 Nov 2001