Ideal Hardware saw its share price slump by nearly a quarter on 16 March after the distributor warned volatile market conditions could affect its performance.
Richard Jewson, Ideal Hardware chairman, stated: 'Recent industry announcements confirm the unprecedented volatility and unpredictability of the global IT market. Ideal continues to experience record weeks followed, quite unaccountably, by dull periods.
'Notwithstanding these market conditions, we are disappointed that the growth in profits is less than that demonstrated in previous periods.'
He added: 'We do not anticipate that stability will return to the market until the last quarter of this calendar year. Year-on-year profit growth will be difficult to achieve this year. We remain hopeful that growth can be resumed next year as our initiatives take effect.'
Talking to PC Dealer, James Wickes, Ideal managing director, said: 'We are being responsible to shareholders as you cannot lead people into expectations which you are not sure about.' He added that the volatile conditions meant that Ideal Hardware would not be sure of its future performance until April.
The chairman's statement saw Ideal's share price drop by 120p to 385p on 16 March, its lowest trading price this year.
Ideal's warning had a knock-on effect, causing Ilion's share price to drop by 3.5p to 191.5p and Northamber to fall by 5.5p to 236p.
Ideal suffered an eight per cent drop in its share price in February, after several large investors sold their Ideal shares.
The distributor released figures for 26 weeks to 31 January, showing pre-tax profits - which included an exceptional item for the sell-off of PTI and Burlington Road premises - of z4.5 million, a jump of 8.8 per cent. Turnover rose by 33 per cent to z110.4 million.
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