Feeds

Datrontech joints profit warning stampede

Is RD Computers up for sale, or what?

  • alert
  • submit to reddit

Mobile application security vulnerability report

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
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
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.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.