Compel sees turnover up, profit up in wake of Info’Products buy
Latest acquisition could dent next set of figures though
Compel Group’s interim results today showed a 36 per cent increase in pre-tax profit to £4.97 million. Turnover for the period was up 40 per cent to £121.6 million, for the period ending 31 December. The company declared a dividend of 2.4 pence, from 2.1 pence last year. Earnings per share were up 29 per cent to 11.6 pence. Compel said all areas of the group had performed well. On 8 January 1999, Compel bought the reseller Info’Products, which is expected to make an operating loss in the second half of 1999, before returning to profitability next year. Compel said it would do this by reducing Info’Products’ cost base before improving its business margins by increasing the level of services provided. Compel added that it had paid materially less for Info’Products than its net assets in anticipation of the loss. Neville Davis, Compel chairman and chief executive, said: "The Group enters the second half of our financial year in a strong position; the board is confident about the prospects for this period and beyond." ®
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