Feeds

Troubled ilion sees last year’s profit turn into losses

Many excuses given but no real light at the end of the tunnel yet

  • alert
  • submit to reddit

New hybrid storage solutions

ilion today turned in dismal pre-tax losses of over £3 million for 1998, blaming redundancy, management changes, and reorganisation costs. Last year, the troubled networking distributor posted a £6.1 million pre-tax profit but despite an increase in turnover for the year ending 31 December 1998, ilion saw this turn into a loss of £3.24 million. Turnover for the period stood at £240.6 million, up 18 per cent on last year’s £203.1 million. In the UK, ilion saw a pre-tax loss of £1.4 million, against 1997’s £5.6 million profit. Turnover fell to £108.4 million from £115.5 million. Redundancy costs in the UK, reorganisation costs in Germany and the closing of its Swiss operation were cited as reasons for the disappointing figures. ilion blamed difficult UK trading conditions for the two profit warnings issued in 1998. This morning it said the UK business was: "Now on the road towards profitability with a new management team." The distributor has seen a steady trickle of staff leave the company recently. Last December, Wayne Channon, ilion chairman and chief executive, jumped ship. See earlier story. This month has seen the departure of two key sales staff. Richard Holway, analyst at Richard Holway Ltd and publisher of the Holway Report , described the results as: "A very sad state of affairs." Holway said distributors needed to get big, or go niche and develop services. "As far as I can see, ilion is neither," he added. "I think things have the potential to get better. ilion was faced with problems and took the necessary tough action. But it needs to change its business model, and as yet it has outlined no such plans," said Holway. Michael Sayers, ilion chairman, commented: "The Group now has a strong and united senior management team. The difficulties experienced during 1998, primarily in the UK, are being addressed effectively and the board looks forward to the rest of the current year with confidence." ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.