Distributors warn of volatile markets ahead

UK distributors fare better than their US counterparts

UK distributors experienced contrasting financial fortunes last quarter, with some companies warning of uncertain trading conditions ahead.

Distributor Northamber reported pre-tax profit of £5.5m, down from £7.5m a year ago for its preliminary year-end results ended 30 June 2001. However, turnover was up by an encouraging £15m from £284m in 2000 to £299m in 2001.

David Phillips, Northamber's chairman, said: "The second-half contribution to these results was achieved during market conditions far different from those reported in the interim stage. The board is pleased they show our resilience to adverse conditions."

Meanwhile, networking distributor Azlan continued to gain momentum, announcing further growth in turnover and profit in the first six months of its financial year following success in the year ended March 31 2001 (CRN, 23 May).

Azlan announced preliminary turnover and pre-tax profit predictions for the six months to 30 September 2001. The distributor claimed its profit is likely to be over £7m, compared with £5.4m last year. Turnover is expected to be over £297m, compared with £262m for the same period last year.

While in the US, Ideal Hardware's parent company, Bell Micro-products, warned investors last week it will lose about $3.3m (£2.2m) for its third quarter. It also took a $10m restructuring charge in the third quarter because of lay-offs, the discontinuation of a supply-chain management programme and various write-offs.

Turnover in the quarter is expected to be $490m, according to the company.