Real Time reverses its losses

REAL Time Engineering, one of Scotland's largest independent IT consultancies, dramatically reversed heavy losses after finding niche markets in the downtrodden technology sector and striking a series of big aviation industry deals.

Gerry Docherty, the Glasgow company's chief executive, also said there were now clear signs that the tech downturn had bottomed out and that the outlook for the IT industry was rosier than it had been since the boom days of the late 1990s.

However, the firm's latest accounts for the year to the end of September, obtained from Companies House, reveal that Real Time managed to plough through the tough times.

During the period, the company recorded a £206,662 pre-tax profit for the year to the end of September, on a turnover of just more than £7m.

During the previous year, the firm – which was launched 16 years ago – made a pre-tax loss of almost £400,000, with revenue slumping 18% to £7.9m.

A key driver in turning around the company's fortunes – battered by both the tech slump and the aviation sector's financial devastation in the aftermath the terrorist attack on the World Trade Centre, in September 2001 – was a "six-figure" contract with the UK Civil Aviation Authority.

Under the terms of that deal, Real Time developed a system to allow the CAA to manage the radio licence of every aircraft flying in British airspace.

It also developed software for a number of UK airports to monitor passenger flow, providing key information for both the airports' security and retail services.

Docherty said: "Our turnaround last year was pretty much the result of hard work. We're extremely pleased we managed to stay profitable during the downturn."

He said that since March 2002, the company had been running month-to-month profitability. He also said that Real Time's profits were expected to be greater during the current period, in which it had already struck a number of major oil and gas industry deals and that had been contracted "a six-figure sum" to develop transport and direct portal, an online service for the Department of Transport.

One insider said the TDP contract was worth some £750,000.

During the downturn, Real Time had been forced to cut its staff from 129 to 109 jobs, but yesterday Docherty said that headcount would rise to 120 before the end of the year in reaction to the apparent technology pick up.

Industry observers have, for months, noted that corporate IT managers have started loosening their belts and are spending money again on replacing outdated technology.

Docherty added: "By the end of this current financial year, we will expect to have seen a significant shift up in terms of demand for IT services as the corporate outlook becomes brighter.

"It is still a tough world out there, but we do expect the future to be easier than it has been."

MARK SMITH February 20 2004