Morse ready for upswing

VAR still expects to post a profit despite tough climate

Despite finding the current climate tough, Morse still expects to post a profit, according to its latest trading update.

The VAR, which will file detailed interim financial results on 31 August, posted Q4 turnover of £85m, compared with £112m in Q4 last year. Half-year turnover was £165m, compared with £239m in 2002, and full-year 2003 turnover was £351m, compared with £465m in 2002.

Services turnover for Q4 stayed the same as 2002 at £29m, but infrastructure sales fell from £83m in 2002 to £55m in Q4 2003.

However, the firm claims it expects an operating profit before goodwill amortisation and restructuring for the full year to be around £9m, and has a cash balance of approximately £75m.

Duncan McIntyre, chief executive of Morse, said: "In [this] environment customers are still hesitant to commit to IT expenditure. We are managing costs out of [Morse] to enhance efficiency."

Alan Norton, head of intelligence at credit and finance specialist Graydon, said: "Morse has a strong balance sheet and will be in a good position when the upturn occurs."