UK storage biz drags InTechnology deep into the red
InTechnology, the storage distie and computer services group, is whacking overheads following a whopping operating loss of £13m for the six months ended 30 September.
The Leeds-based company blames pricing pressure in its UK storage wholesale business for the loss - revenues in the division were 10 per cent down on the same period last year.
The company has completed restructuring for the UK storage division, axing 42 jobs and reducing office space. It is embarking on the same process in its Continental Europe distribution subs and the aggregate cuts costs by £6m a year and return the business to profitability. It has taken a restructuring charge of £4.2m in these results and is also recording an asset impairment charge of £6.4m to account for the longer-than-expected turnaround time for its five Continental European subs.
On the upside the company's managed services business is now in the black, making a profits contribution of £500K in H1 (H1 2004: -£1.7m). ®