Action reveals plans for Euro expansion

Wembley reseller Action Computer Supplies has posted confident results and outlined expansion plans despite acknowledging dark clouds on the horizon.

Results for the year ended 28 August revealed pre-tax profit up 39.7 per cent to #7.1 million, with operating profit climbing 45.1 per cent to #7.7 million. Turnover climbed 45 per cent to #250 million.

There was also a #990,000 charge for restructuring and integrating the two acquisitions made during the year. The acquisitions, Fraser Associates in October 1997 and SHL Reseller Division in May, helped push customer numbers from 71,680 to 86,513.

Product sales showed network sales were up 38 per cent, software 45 per cent and PC sales 19 per cent. E-commerce sales climbed by 300 per cent, with 12 per cent of orders coming through its Website.

Action is attempting to develop more autonomous business units. The services arm, Action Services, will be the first to go fully operational on 1 November.

George Laplante, group managing director of Action, said: 'Our mini-business will allow us to deliver, configure and install 300 boxes. We don't want to get into system design and solutions - that's for the likes of Price Waterhouse.'

Ian Wakelin, finance director at Action, revealed a move to mainland Europe would be on the cards once turnover hit #500 million. 'At present, we are looking at acquisitions in the UK - a software reseller, possibly an internet company. We look for strong businesses and a client base.

We are always being approached with potential deals because we are known as an acquisitive company,' he said.