Diploma Plc has seen profitability rise for the first time in a long while due to an ‘excellent contribution’ from Macro, the group’s largest franchise distributor of electric components. Pre-tax profits for the year ending September 30 rose 14.5% to ?16.6m, although turnover fell 7.7% to ?132m. The Macro group, which comprises Macro and Anzac, increased sales by 16% to more than ?45m for the first time, exceeding targets of a 10% return on sales and a 20% return on capital. Anzac contributed approximately ?10m to revenues. Macro sells electric components from such manufacturers as National Semiconductor Corp, Hewlett-Packard Co and Philips Electronics NV into the US and UK marketplaces. Anzac represents Hitachi Ltd and NEC Corp in the memory devices area. Macro’s success was attributed to the sterling work of its managing director, Harriet Green, who started off as a trainee at Diploma, and has been in her present job for the past 18 months. Over half of her workforce are women, including six regional sales managers. Nortronic DTV, the other component distributor for the London-based group, saw turnover up 3.3% to ?9m, while pre-tax profits rose 33.3% to ?800,000. Nortronic sells electromechanical components, such as connectors and relays. Wakefield Holdings also turned in increased revenues. Like Diploma, Wakefield is simply a holding company, which trades under the names, South Hills Electronics and Alpeco Sisher Co. South Hills traditionally has supplied communications products to the US market, but lately has moved into providing networking ‘solutions’. Alpeco supplies computer-related networking products to the Caribbean and South America. New outlets have been established in Puerto Rico and Chile, and further investment in this area is likely.
