Shares in Computerland UK Plc rose 9% to 76 pence on Friday as the company reported improved profits – and more importantly a further move away from products and into services. While product sales are now down to around 25% of the total, they are still a drag on the company. Directors say that product sales in May and June have been disappointing and the outlook for its product business continues to be uncertain.
However, Computerland has doubled in size over the past two years and has enjoyed a three-fold increase in services revenue. Net profits showed a 10.2% increase to 622,000 pounds ($970,000) in the year to April 30 on revenue up 83.9% at 37.6m pounds ($58.6m). With equity diluted by acquisitions, earnings per share in the last year fell 27.9% to 6.2 pence.
