Tiny Computers, the PC system builder/retailer, is being lined up as an acquisition target for Dixons, the UK's biggest electricals retailer, according to MicroScope, which cites 'industry rumours'. Tiny's UK sales manager, Steve Precious, left the company last week, as part of what the newspaper describes as 'a high-level shake-up'.

Microscope Story

There are a few "industry rumours" doing the rounds at the moment relating to Tiny and we would like to make some facts clear.

Firstly, the information as printed in The Register and 'Microscope' magazine about Tiny Computers is completely untrue. Tiny is not, and has not been, in discussion with the Dixon's Stores Group. Neither have we entered into any commercial negotiations.

Tiny has no financial problems. We continue to be the UK's largest PC manufacturer and we are still increasing business year on year. Latest figures from Dataquest for Q3 2000 state that Tiny has increased sales on the same period in 1999 and this year we predict we will increase our sales by an additional 30% on 1999. Additionally, we are expanding our sales by opening new showrooms. As part of a long term agreement, we have recently opened 4 new showrooms within Scottish Power along with many others in major UK shopping centres.

Finally, we believe that these "rumours" have been generated as a smokescreen by some of our competitors who themselves maybe experiencing financial difficulties. Please be clear that the rumours are not in anyway true.

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MESH Computer is to open a 40,000sqft production facility near Edinburgh, in 2001. This will quadruple production capacity from 250 build to order machines a day to 1,000 machines a day. The system builder is also opening five new showrooms next year, with Birmingham and Bristol 'opening soon'.

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Skillsgroup stands to receive up to £7m for Acuma, its Unix distribution subsidiary, from JZ International LLC. It gets a down payment of £4.5m, and has a performance-related deferred consideration of £2.5m. The deal is subject to shareholder approval from Skillsgroup.

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Hewlett-Packard has raised printer consumables price for the fifth time in a year - the dealer price list is now 28 per cent higher than 1999. Resellers contacted by Microscope accuse the company of complacency and are threatening to switch sell other brands. ®