Feeds

Datrontech joints profit warning stampede

Is RD Computers up for sale, or what?

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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 Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.