Feeds

Job losses follow Ideal re-org

Kevin Harper leaves Inter-X board

  • alert
  • submit to reddit

The essential guide to IT transformation

Ideal Hardware is to make "substantial" redundancies and reorganising to cut costs, following a profits warning. The storage distie is disbanding its operational board and replacing it with a smaller, executive board, headed by Ian French, who is now promoted to chief executive. He will report directly to Inter-X boss James Wickes. At the same time, Ideal Hardware co-founder Kevin Harper is resigning today from Inter-X, the holding company for Ideal. He will continue to work as a consultant for new Inter-X subsidiary, The IT Network. Ideal says it will save £2 million a year through the restructure, which will lead to an one-off charge £700,000 for the current financial year. Inter-X said difficult trading conditions in distribution had resulted in "a material decline in margins and profitability since the latter part of April". Extremely disappointing Recent trading for Ideal is "extremely disappointing", and this means group profits for this financial year falling significantly below stock market expectations. But Ideal is still trading profitably and cash flow remains strong, Inter-X says. To keep that way. the Board is "embarking upon a significant restructuring of Ideal in order to produce immediate material reductions in its cost base and improved efficiency of its sales teams." The sales and product management teams will also be restructured. Further details of the job losses and restructure will be announced tomorrow, but redundancies were described as "substantial" by Wickes. Upbeat IT Network On the upside, Inter-X forecasts great things for its new Internet service, the IT Network. Described as a product comparitor database, this service will have more than 100,000 registered members by the time it launches at the end of the month. And committed revenue to date exceeds £650K, Inter-X says. The IT Network is now forecast to break even -- on the operating level in the current financial year and to make material contribution to group profits thereafter". But there's a sting in the tail -- launch costs will now be £500,000 higher than the £3.2 million originally anticipated. But this is due to "overwhelming" response for the service. ®:

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.