P&P Plc of Rossendale, Lancashire is pleased with its financial results, reported yesterday: for the year ending November 30 1989 pre-tax profit rose by 47% to UKP11.1m from last years UKP7.5m, while turnover increased 58% to UKP168.9m from UKP107m. With analysts predicting UKP10.5m this was a pleasant surprise, said Steve Brooker, P&P director. Fully diluted earnings per share were 20.8 pence, up 16%. The Board is recommending a 25% hike in the final dividend to 2.5 pence. During the last year much expansion and reorganisation occured; with increase in overheads due to the aquisition of Personal Computers Plc, pre-tax margins have decreased slightly though the gross margin improved from 17.1% to 18.1% with gross profit up UKP18.2m to UKP30.5m. Approximately 50% was achieved from distribution, the rest split between its corporate division which provides a range of services such as technical support, network installation and project management mainly for blue chip companies. Last September P&P Training Services was established with the training division of Personal Computers and in January P&P became an IBM agent for the AS/400 computer range. It also acquired two Belgian companies, Microcomputer Business Systems NV and Zaventem Electronic Development, which are both complemetary to P&P business, as part of its plan to step into Europe for the Single Market in 1992. It plans to bring many of the ideas of British distribution to Belgium and into the rest of Europe, in the belief that UK distribution methods are better than continental ones. Investment has also been made into a semi-automated warehouse in Lancashire which is intended to increase distribution effectiveness. In May the company’s seven southern region offices will be consolidated in Wapping and concentrate on systems installation, support, maintenance and consultancy. P&P believes corporate demand for personal computers, products and service will continue in strength, and that its success and its re-organisation in 1989 has put the group in a good position to meet the challenges that the 1990s may hold both in the UK and in the rest of Europe.
