Poor sales lead to Lynx loss

Relatively poor performances by Sphinx CST and Lynx IT Training offset good contributions by Lynx Group's other businesses, causing the solutions and services provider to report a fall in profit for the year ended 30 September.

Relatively poor performances by Sphinx CST and Lynx IT Training offset good contributions by Lynx Group's other businesses, causing the solutions and services provider to report a fall in profit for the year ended 30 September.

The group posted pre-tax profit of £12m, down from £13.3m, despite a 17 per cent rise in turnover from £180.9m to £212.5m. Profit after tax was £4.6m, down from £6.7m. Richard Last, chief executive of Lynx Group, said the year had been "disappointing" and that general market difficulties particularly affected the value-added distribution business.

He said Sphinx CST had increased its turnover by 14 per cent from £82.2m to £93.4m. But operating profit plunged from £4.9m to £2.8m because of the millennium lockdown on hardware purchases. Sphinx had also lost its 3Com account and sales of IBM networking products had been reduced in the fourth quarter.

However, networking sales are expected to pick up as a result of Lynx being appointed a Cisco distributor in July, he said.