Channel giants prosper

C2000 and SCH post promising results as market shows signs of recovery

Channel stalwarts Computer 2000 (C2000) and Specialist Computer Holdings (SCH) are showing signs that the long-awaited renewal cycle might be just around the corner.

C2000, the UK arm of Tech Data, posted pre-tax profit of £7.9m for the year ended 31 January 2002, on a turnover of £781m, a 17 per cent decline from the previous year.

Julian Klein, managing director of C2000, said: "The market was very challenging for everyone. The fact that we have continued to be profitable at this time is testimony to the strength of our business model and the dedication of our employees. We will continue to drive our efforts to deliver the support that resellers need."

Meanwhile, VAR and distribution group SCH posted strong unaudited results for the year ended 31 March 2002 for its UK and international business.

Combined turnover for SCH and Specialist Computers International was £1.5bn, a year-on-year increase of 7.5 per cent. UK turnover was £872.5m, compared with £845m the previous year. Combined pre-tax profit was £34m, an increase of 18 per cent on the previous year.

Sir Peter Rigby, SCH's chief executive, said: "We are delighted to report both an increase in turnover and a substantial increase in profit, against a background of the most difficult market conditions that the industry has experienced in Europe in recent times.

"In a very busy year, SCH grew its UK and international businesses massively against the market trend and profit downturn from competitors."

Alan Norton, head of intelligence at credit management firm Graydon, said: "Taking into account the difficult trading conditions, this is a good performance. Both companies have made impressive profits by controlling costs against a background of adverse market conditions.

"C2000 and SCH are both market leaders that are well managed and well structured, and their results reflect this."

Rival VAR Computacenter also reported good results for the six months ended 30 June. It posted a pre-tax profit of £24.4m and a turnover of £975m (CRN, 9 September).