Peripherals responsible for Acal results

Electronics distributor Acal posted a 29 per cent increase in profit off the back of improved performance in its parts business.

Interim results for the six months ended 30 September showed pre-tax profit up to #7.2 million, from #5.6 million for the same period last year. Turnover increased by five per cent to #78.2 million.

Forty per cent of Acal's business is in the UK, its main European markets being in Holland, Germany and France.

In a statement, John Curry, chairman of Acal, said: 'The economic climate and the strength of sterling have made it tough in the UK. However, we have achieved growth in our PC parts business, EAF, and the document management business, Headway, although not in electronic components and industrial products.'

The EAF subsidiary principally supplies a range of components to maintenance and support operations. The electronic components business, Acal Electronics, also supplies some parts to OEM computer manufacturers.

A number of issues dogging the EAF subsidiary seem to have been resolved.

At the end of 1997, it withdrew from a high-volume repair business which the company admitted had hurt margins and taken management time. This year, Acal results were helped by the withdrawal, in addition to a restructuring programme that allowed for greater co-operation between country subsidiaries, a representative said.

He added that increased reliability and faster delivery times had helped bring in extra business.

In Acal's last full year, ended 31 March, profit was #10.3 million on turnover of #160 million.