26th Mar 2007 07:01
Acal PLC26 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 ofits financial year on 31 March 2007. The sale of Acal's Air Conditioning and Refrigeration business, announced in May2006, was completed in early July 2006. For reporting purposes this businesswill be shown as a discontinued activity in the results for the year to 31 March2007 and the comparative period to 31 March 2006. Acal's profit before taxation from continuing activities for the year ending 31March 2007 is expected to show an improvement over the prior year, in line withmarket expectations. Electronic Components The initial benefits of the strategy of extending Acal's technology products andgeographic coverage are now beginning to show in the improved financialperformance of this division, particularly in the Continental European businessunits. We have continued to expand our existing semiconductor portfolio and havenow 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 partsas a number of end-users of IT went through a "technology-refresh" process whichreduced demand for out-of-warranty parts and services. The second quarter sawsome of this lost demand offset by new business in the PC and PC peripheralactivities. In the mid-range to higher-end computer activities, the servicedinstalled base for a large contract which commenced in April 2005, steadilydeclined over the year. Accordingly both sales and profits for the year to 31March 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 ofthe division have been reorganised so as to present a unified range of servicesto customers. IT Solutions Although the markets in our areas of operation remain competitive, the stabilityin pricing and margins seen in the first half year has been maintained in thesecond half. This together with an extending product range in the networking,SAN and security activities will result in an improved performance compared tothe prior year, ahead of budget expectations. Acal's preliminary results for the year ending 31 March 2007 are expected to bepublished on 4 June 2007. For further information:-Tony Laughton - Chief Executive 01483 544500Jim Virdee - Finance Director 01483 544500 Brian Coleman-Smith/Leanne Denman/Jaiye EliasCubitt Consulting 020 7367 5100 Notes to Editors: 1 The Acal Group is a leading European, value-addedtechnology based distributor providing specialist design-in, sales andmarketing, as well as stock planning and procurement services in the fields ofElectronic Components, Parts Services and IT Solutions. Its value-addedphilosophy and geographic coverage enables Acal to provide specialist knowledgeand support to customers on a pan-European basis. 2 Design-in is the process by which Acal's sales engineerswork with customers and suppliers to procure components which meet the specifictechnical and performance needs of the customers. 3 Acal has operating companies in the UK, Netherlands,Belgium, Germany, France, Italy, Spain and Scandinavia. Westech Electronics, anassociated 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 ExchangeRelated Shares:
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