Feeds

CCM Distribution outlines post MBO strategy

Ecommerce still on backburner

  • alert
  • submit to reddit

SANS - Survey on application security programs

CCM Distribution expects to have its MBO wrapped up by the end of May, and has outlined plans to grow sales to £30 million for this financial year. The Cheshire-based business last week announced it was switching tactics to become a high-tech investment house called Fundamental e-Investments. As a result, CCM MD Brent Cutler is leading a multi-million pound management buyout of the computer components distribution part of the business. According to Cutler, the MBO is at an "advanced stage" and should be finished in four to six weeks. Fundamental e-Investments will keep a small stake in private company CCM – less than 10 per cent. Cutler hopes to grow CCM's turnover from £23 million to £30 million for the year ending 30 September 2000. "People now want more value for less money," said Cutler. "This means we need to increase the service to companies, and at the same time cut prices." This strategy would bring in lower margins, but on a higher turnover, he said. CCM has also started its own range of products called Freedom – which are re-branded components from other vendors. The scheme, currently using between 10 and 20 manufacturers' kit, means CCM takes on the warranty and replaces faulty goods to resellers. It has also promised to dump any vendors who do not honour warranties. Regarding its e-commerce site, CCM has put the launch date back again – to May. Although useful to check availability of stock, Net-wary Cutler does not see it as a viable selling tool for distributors just yet. "There is a vast difference between a consumer buying a book from Amazon, and system builders buying a motherboard online… There is evidence that ecommerce it isn't working for other distributors," he said. ® Related stories: CCM hives off distribution in MBO CCM dips toe in e-commerce waters Falling prices dent CCM figures

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.