Feeds

Morse shares tumble on channel exposure

Hardware blues

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Shares in UK IT services group Morse took a tumble yesterday, after the company warned that conditions in the hardware reselling business would continue to be tough.

In a sales update the company reported flat revenues of £96m for the quarter (Q3) ending 31 March, and its announcement that it would take "radical action" to reduce its exposure in the low-margin hardware business did nothing to stop shares sliding more than 15 per cent to a new low of 91 pence.

Morse has been trying for some time to drop the reseller tag, and reposition itself as an IT services group (the margins are much healthier). It said that its services business now accounted for 45 per cent of sales, but since its hardware sales are flagging, it is not such a surprise that other parts of its business account for greater proportions of its turnover.

Duncan McIntyre, chief executive said he was disappointed with the performance of the UK infrastructure business this quarter, adding that the market was weaker than expected, the FT reports.

"The IT hardware business has been pointing in this direction for a while but we have now realised we need to take more radical action," he told the newspaper.

You can read more here

Related stories

Morse: UK sales under pressure
Morse swoops on Diagonal
Morse buys niche consultancy biz

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.