Feeds

Datrontech joints profit warning stampede

Is RD Computers up for sale, or what?

  • alert
  • submit to reddit

The essential guide to IT transformation

Datrontech Group's pre-tax profit will only reach half of market expectations for its first half, the company warned today. Profit for the period was originally estimated at about £4 million. But there will be a shortfall due to flagging demand in the European PC market in April and May. Datrontech joins a long list of distributors issuing profit warnings this quarter. Northamber, ilion and Ideal Hardware have all admitted to struggling with market conditions. The group blamed poor sales and profits in its component distribution sector, a situation it said showed no sign of improvement. "There has been little sign of improvement during the first few days of June and as a result sales and profits in our component distribution companies will be very disappointing at the half year," it said. The UK networking businesses were still said to be performing well. Companies in Eastern Europe continued to make losses, but at a much reduced rate. The Czech and Polish subsidiaries turned in a combined loss of just under £2 million for the extended year ended 4 January, blamed for a fall in profit for the company overall. "High priority continues to be given to strengthening the group’s balance sheet and improving cash flow," CEO Mark Mulford said, in a statement. Datrontech still aims to shift its product mix to an even split between component distribution and its networking business. Last year’s 70:30 split will reach 50:50 in the medium term -- because networking sales are growing faster than components. Mulford added that the group expected to get rid of certain non-core assets, and cut costs by penalising managers who exceed working capital limits. Datrontech also wants to start direct-order web sites to lower operating margins. Industry insiders say Computacenter is interested in buying RD. Alan Mack, Datrontech group commercial director, declined to comment on offloading parts of the company, or if this referred to the RD Computers 'IT disposals division, but he described a non-core asset as "for example, a business that is not fundamental or strategic to the group." ®

Secure remote control for conventional and virtual desktops

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
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.