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CFS readies pounds 4m USM flotation

Diane Coyle
Monday 24 January 1994 19:02 EST
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COMPUTERISED Financial Solutions, a specialised computer services company, has issued its prospectus ahead of flotation on the USM, writes Diane Coyle. The float will value it at pounds 4.23m, and the placing price will put the shares on a notional p/e ratio of 16.48.

CFS is a minnow operating in a niche market - the administration of inventory finance arrangements between manufacturers and finance houses. It started out serving car manufacturers - Alfred Stein, the chairman and chief executive, is a former Chrysler man. The company has expanded into other consumer goods industries and retail financial services.

Turnover in the first six months of 1993 was pounds 1.6m. Pre-tax profits for the first half were pounds 77,000. The company expects to pay its first dividend in 1994.

Its largest customer, accounting for 15 to 20 per cent of sales, is IBM, which is also a shareholder. IBM will retain nearly 15 per cent of the share capital. The directors will hold just over 43 per cent. Dealings will begin on 3 February.

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