Acal PLC
26 March 2007
FOR RELEASE 7:00AM 26 MARCH 2007
ACAL plc
(Leading pan-European, value-added technology based distributor
providing specialist design-in, sales and marketing services)
Trading Update
PROFITS EXPECTED TO BE IN LINE WITH MARKET EXPECTATIONS
Acal plc has issued the following update on recent trading, prior to the end of
its financial year on 31 March 2007.
The sale of Acal's Air Conditioning and Refrigeration business, announced in May
2006, was completed in early July 2006. For reporting purposes this business
will be shown as a discontinued activity in the results for the year to 31 March
2007 and the comparative period to 31 March 2006.
Acal's profit before taxation from continuing activities for the year ending 31
March 2007 is expected to show an improvement over the prior year, in line with
market expectations.
Electronic Components
The initial benefits of the strategy of extending Acal's technology products and
geographic coverage are now beginning to show in the improved financial
performance of this division, particularly in the Continental European business
units. We have continued to expand our existing semiconductor portfolio and have
now established dedicated teams for these products in Germany and Italy.
Parts Services
As previously reported, the first half of this year saw weaker demand for parts
as a number of end-users of IT went through a "technology-refresh" process which
reduced demand for out-of-warranty parts and services. The second quarter saw
some of this lost demand offset by new business in the PC and PC peripheral
activities. In the mid-range to higher-end computer activities, the serviced
installed base for a large contract which commenced in April 2005, steadily
declined over the year. Accordingly both sales and profits for the year to 31
March 2007 will be significantly lower than the prior year in this division.
Following the acquisition of the 28.4% minority interest in CPI in October 2006,
for a consideration of approximately £6.7m, the customer-facing activities of
the division have been reorganised so as to present a unified range of services
to customers.
IT Solutions
Although the markets in our areas of operation remain competitive, the stability
in pricing and margins seen in the first half year has been maintained in the
second half. This together with an extending product range in the networking,
SAN and security activities will result in an improved performance compared to
the prior year, ahead of budget expectations.
Acal's preliminary results for the year ending 31 March 2007 are expected to be
published on 4 June 2007.
For further information:-
Tony Laughton - Chief Executive 01483 544500
Jim Virdee - Finance Director 01483 544500
Brian Coleman-Smith/Leanne Denman/Jaiye Elias
Cubitt Consulting 020 7367 5100
Notes to Editors:
1 The Acal Group is a leading European, value-added
technology based distributor providing specialist design-in, sales and
marketing, as well as stock planning and procurement services in the fields of
Electronic Components, Parts Services and IT Solutions. Its value-added
philosophy and geographic coverage enables Acal to provide specialist knowledge
and support to customers on a pan-European basis.
2 Design-in is the process by which Acal's sales engineers
work with customers and suppliers to procure components which meet the specific
technical and performance needs of the customers.
3 Acal has operating companies in the UK, Netherlands,
Belgium, Germany, France, Italy, Spain and Scandinavia. Westech Electronics, an
associated company, is based in Singapore and covers the Far East region.
This information is provided by RNS
The company news service from the London Stock Exchange
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