Norwich businessman steps in to save his software design firm from liquidation

Software from Norwich company LJ Create in action in the classroom. Picture: LJ Create (Image: Supplied)

Larry Rowe is back in the director's chair of his educational software development firm LJ Create, after the company he sold it to five years ago moved to liquidate it.

Electronic engineer Mr Rowe founded the firm in 1979 after securing premises in Bowthorpe rent-free for a year through a sponsored scheme.

At its peak, the company – which develops software for science, technology and engineering teaching – was turning over £12m a year and had 100 staff in Norwich and 40 in the US.

He sold the business after failing to get planning permission to convert listed buildings at Costessey Park Golf Club – which he also owns – into offices.

However within five years, LJ Create encountered financial difficulties under new owners Infinitas Learning.

Mr Rowe said Infinitas had 'completely changed' the direction of the business, closing its US offices in Long Island and Atlanta to focus on European markets.

'Business sense says if you are hoping to open new markets, keep doing what you have been doing which is making money, but they shut down the bits that were successful and the other things didn't work, ' he said.

In April this year LJ Create went into liquidation and Mr Rowe, 74, stepped in to save it – paying around £1m for the company he sold five years earlier for £5m.

It employed 40 people when it was liquidated, but 20 have since agreed to return. His three-strong senior team, including son Chris Rowe, also remain in post.

'There is a loss of confidence among our customers, so we are trying to reestablish that confidence and reassure people we are back in business,' he said.

'But our first focus has to be to rationalise to become profitable.'

Mr Rowe said the firm is rebuilding 'strong relationships' in the US and has a backlog of potential business it was unable to fulfil in its final months under Infinitas.

He estimated annual sales of £3m-£4m would be enough to push the firm back into profitability.

The company will be moving to new premises in Bowthorpe in the coming weeks.

A desire to design

Before he was a businessman, Larry Rowe was an academic.

A trained electronic engineer, he lectured in electronics at City College Norwich in the 1970s. His career in software production began with making programmes for his students.

'I got into business on the crest of the microprocessor, which came about in the 1970s and has impacted everything since.'

At a time when more and more learning is taking place on computers, LJ Create builds software mainly for universities and colleges, but also offers primary and secondary school resources.

At its height the company had 60 software developers working in Norwich maintaining more than 3,000 products. Mr Rowe said the reduction in the workforce means the company will scale back its range.

After stepping back in as managing director, Mr Rowe hopes to put LJ Create back on its feet within three years, at which point he will retire.

Global presence

At its peak LJ Create was operating through agents in 80 countries, supplying education software in English and Spanish.

Its largest contract, worth around £6m, was to help former Soviet nation Kazakhstan build an independent education system, as part of a programme involving 100 schools. It screened weekly teaching programmes in Russian for Kazakhstani teachers for two years.

Mr Rowe said: 'We got involved at a time when they were looking at going from a blackboard education system and taking a big step into teaching technology.'

According to Mr Rowe the UK's strong academic reputation is a major selling point for LJ Create's products, especially in countries with less well established education systems like Central America or the Middle East.

'Most places we go, the quality of teaching staff is lower and they rely more on using resources.'