Feeds

Action halfway to £500m target

Selective acquisitions planned (as opposed to non-selective acquisitions unplanned)

  • alert
  • submit to reddit

The essential guide to IT transformation

Action Computer Supplies Holdings reported its 1998 results, ramping up turnover by 45 per cent to £250 million, but still way short of meeting its stated ambition to be a £500m company by the year 2000. Financial director Ian Wakelin said the objective still stands, although the timetable may have changed, but given the 45 per cent growth rate this year, Action is still be on the acquisition trail. “We’re actively looking for companies but don’t expect to see anything happen in the short-term,” said Wakelin. Chairman Henry Lewis said that Action is seeing the benefits of its recent acquisitions, and he confirmed that while the Board expects continued organic growth, “it intends to pursue further selective acquisitions." Pre-tax profits were up 39 per cent to £7.7 million and retained profits after a £990,000 exceptional charge inched up to £3.2 million from £3.1 million last time. Excluding the effect of acquisitions, the company increased network sales by 38 per cent, software sales are up by 45 per cent, PC sales by 19 per cent and e-commerce activities trebled over the year from £6.4 million to £19.2 million. Lewis said the IT market has shown good overall growth during the year, and against negatives trends like falling PC prices, he cited positive growth areas like internet usage and e-commerce. Action said its large base of customer’s order frequently from a widespread range of products, and the customer base grew to 86,513 from 71,680, including the effect of two acquisitions, Fraser Associates Plc in October 1997 and the beleaguered SHL Reseller Division in May 1998. Both acquisitions were almost entirely for cash and funded by a £8 million four-year term loan. Fraser Associates cost £3.5m, SHL Reseller Division was £7.9m and the goodwill amounted to £2.9m and £5.7m respectively. Wakelin said the growth in Action’s customer base was almost entirely from the organic businesses, expanding at around 300 customers per month. At the interim stage Action stated that a reorganisation provision of £1 million was anticipated for the SHL purchase, which almost spot-on since the final charge was £990,000. Both Fraser Associates and the SHL Reseller Division are now integrated into one division, and Action said its rationalisation of facilities and computer systems is on target with benefits expected throughout the current year. The company shed around 47 staff in July, closing two of three warehouses and one of two configuration centres.®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.