Acal looks forward to ‘satisfactory year’

Strength of PC parts business sees it through

The Acal Group -- a distributor of electronics and IT products -- has reported increased sales and profits for the six months to 30 September despite suffering difficult trading conditions made worse by the strength of sterling. Much of the Surrey-based company's success has been achieved because of the improved performance of its PC parts business, EAF, which Acal acquired in 1996. EAF operates throughout Europe and has a holding company in Holland. It accounts for around 20 per cent of Acal's turnover. "In Europe, in a more positive climate, we have achieved growth overall," said Acal chairman John Curry. "However, the real success of the half-year has been the turnaround of our PC parts business." Curry said the company achieved growth in the UK in the PC parts business and in Headway, its document management business. "Forecasting is particularly difficult given the uncertain and generally pessimistic economic climate," Curry said. "Nevertheless, we look forward to a satisfactory year." Acal's turnover was up 5 per cent at £78.2 million from £74.6 million the same period last year. Group operating profit increased by 15 per cent to £5.5 million (£4.8 million) and profit before taxation was up 29 per cent at £7.2 million. "I am pleased to report that the business is exceeding the original plans for this year and will meet all our financial goals of growth, return on capital and profit on sales," said Curry. ®