Fronde H1 result

Posted by Jim in Technology business at November 14th, 2008

I’m pleased to see my old colleagues at Fronde have achieved a return to group profitability in the first half of the current financial year, and cleared most of their bank debt.  Ian Clarke and his team have done well.

Disclosure: Isambard Investments Ltd owns Fronde shares.

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2 Responses to “Fronde H1 result”

  1. Blogg3r Says:
    March 16th, 2009 at 3:24 pm

    I am sure this has come legally but where does it sit on the moral spectrum for Fronde. Have Director and Senior Manager salaries been addressed or are redundancies for those who have given their best to Fronde the chosen mechanism for this “return to group profitability”

  2. Jim Says:
    March 16th, 2009 at 4:48 pm

    Keeping its people in work during 2007/8 cost shareholders a lot of money. However, you have to eventually get more revenue than costs or you go bust. Despite heavy investment, we did not achieve the revenue growth needed, so that only left staff costs to be cut (there being little other significant variable expenditure in that business), which the team did during 2007/8, mainly through sinking lid, although there were some layoffs. The reduction in costs included a very large reduction in management overheads - myself included. If you knew the company you’d know that its board was entirely non-executive and paid comparatively modest fees for its efforts.I can no longer comment on current senior manager salaries but they were not excessive for the industry and seniority. I have absolutely no doubt that the company operates in a very legal way, ethical and moral way, and has always had a very caring ethos regarding its staff. Most businesses, boards and managers hate laying off staff, and Fronde was/is no different.

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