Datrontech hits an all-time high.

Despite falling memory prices and five acquisitions, Datrontech has bucked an IT industry trend and recorded a record performance in its first year on the stock exchange. It has also confirmed its appetite for acquisition is as rampant as ever, snapping up Summit Peripherals for u1.63 million in a loans and shares deal.

In its year-end results to March 1996, the Aldershot-based distributor announced a 50 per cent increase in turn-over to u130.1 million, with pre-tax profits up 39 per cent to u6.1 million. Earnings per share are up 22 per cent to 12.6p with a current share price of 228p, compared to an initial flotation price, from March last year, of 130p.

According to CEO Steve King, performance has been achieved despite a 50 per cent drop in prices of some key components, and suggested agreements with suppliers like Kingston Technology have protected it from fierce price erosion.

The acquisition of Colchester-based storage distributor Summit confirms Datrontech's intention of pushing into complimentary businesses and not relying solely on memory products. As its sixth acquisition, Summit could put Datrontech on even more of a collission path with rival Ideal Hardware.

Summit made a pre-tax profit of u98,266 on turnover of u7.3 million, in the year to June 1995, and like the u682,000 contribution to profits from Datrontech's other acquisitions, Summit should boost the firm's figures for 1996.

'As far as I'm concerned, everyone looks at our business, sees us doing well and thinks they can all have a go,' says Ideal MD James Wickes.

'Persona and Azlan had a go and now Datrontech. If Datrontech runs the Summit business well enough, we will be on a collision course, but we've been competing with Summit all the time anyway, and experienced no impact on our business yet.'