Feeds

Europe slowdown subdues Morse

Downbeat statement

  • alert
  • submit to reddit

Morse, Europe's biggest Sun and HP reseller, claimed a "solid performance in a challenging marketplace" for it's last financial year (ended June 30). But it is downbeat about current trading conditions.

"On a comparable basis, activity levels in the opening months of the new year have remained subdued," the company said in a statement today. "The Group will continue to respond to these market conditions and is well-placed to deliver increasing value for shareholders in the future." What does this mean - more job cuts?

Morse full-year sales climbed 16 per cent to £586.1 million (2000: £506.3 million)for the year to June 30, 2001. But it was a game of two halves. In the first half of the year, sales were up 52 per cent on 2000, but in the second half, turnover fell 8 per cent on the same period last year. Morse blames the "progressive slowdown in economic activity" for this.

France and Germany now account for 25 per cent of group revenues and 10 per cent of operating profits . The country operations are still in what Morse describes as in their development stage - and the reseller is confident that it can move margins up to UK levels.

Encouragingly for shareholder, the company's professional services jumped 58 per cent to £87.7m to £81.6m (2000: #55.6 million. Organic growth was 47 per cent. The company declared a Pre tax profit - before exceptional item and amortisation of goodwill - of £35.8m, up 12 per cent (2000: #32.1 million). Take away the restructuring charge of £2.2m - announced in May, and the goodwill charge of £, and Morse's PBT falls to £20.7m.

The company remains cash generative recording a net inflow of £40.5m for the year. It ended the year.
with a cash balance of £41.8m (2000: £35.5m).®

Whitepapers

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.