LONDON Deltron Electronics plc, which is currently the subject of a takeover by Abacus, increased both sales and profits in its financial year ended 30 September.
Sales increased to £67.0million, up from £65.7million in 2004 while profit before goodwill amortisation, operating exceptional items and tax was up to £2.5million (2004: £2.0million). The company also completed three acquisitions during the year in the UK and Germany; Quiller, Deltrona and BES and opened its first office in China.
David Potter, Chairman of Deltron, said, “We are confident that the investments we have made this year combined with our clear market focus will stand us in good stead during the next 12 months despite the subdued European economic conditions.”
“The Electronic Component market recovery as reported at the end of 2003/4 faded as the year progressed, but, despite this backdrop we have continued to make good progress this year by improving gross margins and expanding our market share,” added Potter.
“Gross margins continued their recovery, improving to 33.2% from 32.6% last year. We continued to apply strict controls on operating costs and in our management of working capital in a year where interest rates fell. This resulted in interest costs 9% lower than last year despite our acquisition programme.”