PC-Ware repositions for growth

Microsoft LAR to support expansion with share issue

PC-Ware will use proceeds of share issue to fund corporate growth

After registering a seven per cent drop in annual sales, Microsoft large account reseller PC-Ware is banking on a share issue to return it to growth.

According to the Germany-based firm’s preliminary 2009/10 results, revenue was down 7.2 per cent to €826.2m (£678m), in a year dominated by corporate restructuring. Pre-tax profit hit €0.2m, down from €12.1m a year earlier.

PC-Ware argued that the results were “satisfactory” given the market conditions and its efforts to reshape the business to focus on its core competencies. Last autumn it wound up its German hardware resale arm.

“As regards the 2010/11 financial year, the management board expects a tangible improvement in earnings as a result of corporate realignment performed for the group,” it said.

To support its growth plans for the coming year, PC-Ware announced it is increasing its share capital by up to 1.84 million.

It said the maximum proceeds of the issue of up to €35.94m are to be used for the purpose of financing corporate growth. The subscription period for the new shares is set to begin on 28 June 2010 and end on 13 July 2010.