Data Display’s success a sign of the times

INVESTMENT in public transport around the world is helping Clare company Data Display recover from the sales slump caused

Turnover in 2000 was £20 million, but by 2002 had fallen to €14 million.

However, sales for the first quarter this year are already up 51% on the same period last year and the company's managing director Kevin Neville believes Data Display is now on the way to recovering the 20% to 25% growth rate it had up to 2001.

Governments and transport companies are now investing in infrastructure and the growth area now is in providing electronic displays for undergrounds, railways bus companies and with information about parking availability, he reveals.

The company makes electronic display screens for a wide range of uses it has done displays for undergrounds in Paris, Lisbon, Hong Kong and London for Heathrow airport as well as traffic and parking displays for many European cities.

At present the company is waiting to hear if it has secured a contract to supply displays for the New York underground if the bid is successful this will be one of the biggest projects for the company so far.

Data Display began life in 1980 as a subsidiary of Dutch company Textlite manufacturing single-line moving message displays for the retail market.

Mr Neville bought the Ennistymon- based company in 1988, continuing to manufacture for Textlite. But when the Dutch company went out of business in 1991 Mr Neville renamed his company Data Display and embarked on an aggressive expansion campaign.

During the 1990s Data Display took over companies in Britain and France and set up sales offices in Britain, the US, Holland and Portugal.

In 1999 it opened a state of the art 60,000 sq ft factory with significantly increased production capacity and in 2001 it took over a Swedish company.

Up until 2001 sales of electronic displays to cinemas in the US were very significant but this market has now dropped from 80% of US sales to 30%. This occurred partly due to market saturation but mainly because investment in cinemas stopped during the uncertainty following September 11.

But spending on public transport in the US has gone up in recent times.

"In the US, people travelled by plane but for one month after September 2001 there were no flights and people were travelling on the railways," says Mr Neville, adding it then became apparent that investment was needed in this area.

Mr Neville says spending on public transport has gone up in many countries as part of the drive to reduce traffic congestion on the roads. This means there's investment in railways and bus terminals as well as increased spending on display signs for motorways and parking.

While the biggest growth area at present is for public transport displays, Data Display also produces displays for cinemas, sports events, stock market and currency sales display and advertising.

The company spends about 8% to 10% of turnover on R&D, believing that having the most advanced technology is the key to future growth. Another area it invests in is automation, vital if the company is to remain competitive.

Mr Neville expects the company turnover this year to be about €18 million to €20 million. The target is to achieve a growth rate of 20% to 25% and maintain this for the next three or four years.

Data Display has a staff of 138 in its headquarters at Ennistymon as well as another 98 in its manufacturing facility in Sweden and sales offices in Europe, the US and Australia.

Prior to September 2001, Data Display was planning a stock market flotation but this has been abandoned. "The way to grow now is through acquisition or to merge with another large firm. We will continue to grow for the next few years and then look at the situation," says Mr Neville.