Distributor Merisel UK failed to repatriate any dividend to its US parent in 1994, following losses of almost #2 million for the year.
The firm made the loss on sales of #223.93 million for the year to December 1994, on sales 54 per cent up on 1993's total of #143.6 million. In 1993 Merisel UK declared profits of #924,000 and returned #4.17 million to the parent company.
Pre-tax losses for 1994 came in at #2.5 million comprising an operating loss of #1.5 million, a fall of #3.5 million on 1993's operating profit of #2 million, and interest payments of #1.15 million (#602,000 in 1993) balanced by interest income of #161,000. Post-tax losses for 1994 were #1.98 million, after a tax-loss credit of #574,000.
Merisel's bank borrowings, which are guaranteed by the parent company, increased during the year from #4.8 million in 1993 to #7.8 million. Merisel UK acquired P&P's volume distribution arm in April 1994 for around #500,000.
Merisel said it was covering 1994's loss from reserves, which fell to #5.2 million over the year from #7.14 million in 1993. Merisel share capital accounts for #3 million of the reserves.
Purchases for resale surged to #224.19 million in 1994 from #141.3 million in 1993. A credit of #17.9 million or 'changes in stock of finished goods' is offset against trade purchases. Staff costs rose 60 per cent from #3.9 million to #6.6 million.
1994 also saw the departure of Hitesh Mehta as MD of the company. His directorship was said to have 'ceased' in the company accounts, in contrast to others who 'resigned'.
Merisel UK directors expect to return to profit in 1996, according to the accounts. MD Derek Anderson declined to comment on the results, citing US shareholder confidentiality.
J Pickett resigns. See Page 8.
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