Viglen profits collapse


Viglen profits collapse

Microscope contributor

Sir Alan Sugar may have a new role for an Apprentice in the next series of the BBC show getting them to help turnaround an ailing local system builder called Viglen.

In financial results for the year to 30 September 2007, Viglen revenues dropped 10.9 per cent year-on-year to £45.6m and profits took a 97.2 per cent nose dive to £117,276 from £4.4m.

In the directors' report, Viglen said "the reduction in profit is a reflection of the loss of its Northern Ireland contract together with the focus on 2005/06 of the management on the relocation of the business to Hertfordshire".

"This move has now been successfully completed and now management are fully focused on growing the profitability of the group," it continued.

The managed services contract with primary schools in Northern Ireland involved the running of PC and server infrastructure which according to sources was picked up by Northgate Information Solutions.

Viglen added that the IT industry continues to go through rapid change which present opportunities and uncertainties, "the margins on hardware continues to be under pressure with the future focused on high margin solutions and value added services."

Stock holding for the year fell 6.5 per cent to £4m and the cash balance fell from £5.8m to £2.4m.

Despite repeated attempts, Viglen chief executive Bordan Tkachuk, was unavailable for comment.

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