Feeds

Datrontech joints profit warning stampede

Is RD Computers up for sale, or what?

  • alert
  • submit to reddit

New hybrid storage solutions

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." ®

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.