Feeds

Profit slips as Ideal looks to services

New division to save the day as traditional stomping ground gets over-crowded

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Ideal Hardware saw profits slide for the year ended 30 July 1999, but said the company had turned the corner thanks to its new services focus. Ideal, the distribution business arm of the InterX Group, today posted pre-tax operating profits of £7.6 million, down on last year's £8.9 million. Sales grew by over 38 per cent – with UK turnover at £274.6 million (£193.5 million last year) and £43 million (£36.5 million) from mainland Europe. Overall pre-tax profits before exceptionals for InterX were £6.6 million, down on the previous year's £8.7 million. Turnover rose 38 per cent to £318 million, against £230 million last year. Earnings per share, after exceptionals, was 6.27 pence, from 28.13 pence. Exceptional costs of £3.7 million went into developing the IT Network, the group's Net-based products and information service. Restructuring costs within Ideal and InterX totalled almost £1 million. Ideal cut nearly 20 per cent of staff during the year – from 442 to 345, mainly in sales, product management and supplier services departments. This was part of its cost-cutting re-jig outlined in June, when newly appointed CEO Ian French admitted that critical errors of judgement at board level had left the distributor "dysfunctional and disorganised". James Wickes, InterX CEO, said margins had fallen significantly, resulting in "a material reduction in the cost base" and the end of 30 distribution agreements. "Market conditions in the second half of the year were challenging, particularly in the area of high-end storage solutions, which has historically been higher margin business," added Wickes. But he said investment in service areas, announced last week, would ensure that profitability and market share were maximised. The company also stated that the recent Compaq distribution agreement had kept turnover rising in the UK. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.