LONDON Abacus Group plc, the distributor of electronic components distributor across Europe, has seen a 41 percent increase in turnover to £148.6million for the six months ended March 31.
Operating profit rose 73 percent to £8.8 million while gross margin at 25.0 percent increased from 24.7 percent. According to chairman, Harry Westropp, the first half of the 2007 Financial year has seen the benefits of the acquisitions of the Deltron and Axess. Both acquisitions have been fully integrated into the group, with consequent savings in overheads in line with the original expectations of £5.5 million per annum.
Abacus has seen a growth in market share in the U.K. in electronic component distribution with 15.4 percent in the six months to March 31 compared to 14.4%, including Deltron, in the same period 2006.
According to Westropp the first four months continued the good performance seen in the second half of the previous financial year. The last two months saw reduced bookings in the U.K., Italy and Sweden and stable bookings in our other European markets. Bookings in April showed some recovery but May has again reverted to weaker levels.
The current market conditions are disappointing but looking further ahead Abacus is confident of achieving good organic growth, particularly in Germany where market conditions are more favourable and where its has in the past few months opened four new offices.