Compel trims losses
Compel's outlook is better than it has been "for several years. Two acquisitions, Syscap and Sysao have improved the IT services firm's position in short term IT rentals.
Sir Michael Bett, chairman, said: "The general decline in our clients' and potential clients' expenditure levels drew to a halt during the period and, in some areas, we are seeing evidence of increases." He thanked staff for their "drive, aggression and commitment".
For the year to June end, sales were up 20 per cent to £63m and and operating loss after exceptions and goodwill was £0.5m against a loss of £1.5m last time around. Pre-tax loss were trimmed to £327,000 from £407,000 last time.
Compel's enterprise business (i.e. mid-range servers) saw turnover increase from £43.4m last year to £51.9m this year. Short term rentals, through Hamilton Rentals, increased turnover from £9.4m in 2003 to £11.4m in 2004. The rental business also successfully integrated Syscap and Sysao. Compel is looking for more acquistions to bolster this business.
The results are here.
Once upon a time, Compel was one of the UK's biggest computer dealers, but it couldn't stand the heat, flogging its commodity PC business to SCH for up to £18.5m cash in 2001. Since then, they have haggled over the price, with SCH demanding a refund. Here is Compel's account of the current state of play (pdf).
Since its departure from PC reselling, Compel has concentrated on selling mid-range servers and renting out computer hardware. ®