Acal plc's interim results to September 30 do not make pretty reading. Last year's £2.6m profit has plummeted to an £8m loss as a result of shrinking margins, the cost of paying off a chief executive officer and financial director and writing off 5 million smackers (pounds) on an investment in Singapore.
So Chairman Richard Moon is keen to look forward. He has reasons to be cheerful. A new Chief Executive, Nick Jefferies is coming on board and Acal is pretty flush with cash. At September 30 it had £16.9m tucked away and it will gain another £15.1m from the sale of MessageLabs Corp this month.
The company is now keen to be seen as a consolidator in the distribution business rather than a company waiting to be consolidated. Moon told Reuters it has targets in its sights and Steve Sydes, Managing Director of Acal's Electronics Division agrees there are potential value for money acquisitions in today's prevailing financial climate.
Organic growth is on the menu too. "We will be looking to bring on new lines," said Sydes. The focus will be on semiconductors and power solutions.
Sydes strategy is to fit products around a design-in apporach. " We will be consultative and not try to be all things to all people."
The company will also play up its strengths in boards and systems, "where we can add value and put a kit together to supply as a package," adds Sydes.
At the company's Wokingham site there is more value add on offer including FPGA programming - "25,000 a month," Sydes remarks - power supply assembly and cable assembly.
"The aim," says Sydes, is a £200m business in the next few years."
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