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Product launch trims QSP

Diane Coyle
Thursday 24 March 1994 00:02 GMT
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QUALITY Software Products reported a fall in pre-tax profits in 1993 to pounds 553,000 from pounds 1.2m previously in its first full post-flotation results, writes Diane Coyle.

The accounting software company said spending of pounds 1.3m on marketing a new product explained the decline. Turnover, at pounds 13.3m, was nearly static.

QSP has invested pounds 4m in its Universal OLAS software, an update of its existing products that can run on a wider variety of computer hardware than just IBM mainframes. Alan Mordain, chairman, said sales had been strong in the latest two quarters. In January and February, QSP won contracts worth pounds 1m. It has also recently announced distribution agreements with Iata, the airline trade association, and Global Software of the US.

Tressan MacCarthy, an analyst at Panmure Gordon, said: 'Last year's sales figures are neither here nor there. QSP's prospects depend on the new product.' The first dividend was set at 1.25p. The shares closed 2p lower at 423p.

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