Feeds

CCM Distribution outlines post MBO strategy

Ecommerce still on backburner

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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

Build a business case: developing custom apps

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 ran off to IBM
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
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
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
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

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
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.