AG, which was detailed yesterday (CI No 2,702). This, the two companies believe, will create the fifth largest electronics distributor in Europe. They were a healthy set of figures too, as the Reigate, Surrey electronic components distributor recorded pre-tax profits up 45% to ú5.9m and turnover rising 18% to reach ú123.5m. Along with the merger, Electron also sold its Australian and New Zealand subsidiaries to Avnet Inc after the year-end, the terms of which were not disclosed. The reason for the disposal was a need to increase the company’s presence in the non-catalogue distribution market in Europe, rather than any real problems Down Under. The Australian unit turned in profits up 13% to ú1.7m and turnover up 22% to ú17.6m. Its Kiwi neighbour saw profits rise 37% to ú1.3m on turnover up 29% at ú9.0m. Both Electron and Elektrowatt believe that the franchised, that is non-catalogue, electronic components market is changing, as manufacturers cut back on distributors and sell more direct, and distributors in turn can reduce their costs by centralising operations.
Eurodis Electron
The merger with Eurodis – the new name will be Eurodis Electron Plc – will add seven continental European markets for Electron. Until now, the UK has been by far the biggest market for the company. The systems businesses, Bytec Computers Ltd and CEM Computers Ltd have turned the corner into the black, with profits of ú222,000, against ú26,000 losses last time. Turnover rose 8% to ú26.4m. Components in the UK produced profits up 32% to ú4.1m from sales up 20% at ú70.4m. Along with the 23.6m ordinary shares issued to Elektrowatt, it will also get 13.3m convertible preference shares with a two-year standstill, after which they could be converted to ordinaries at 210 pence per share, which would up Elektrowatt’s holding from 42.2% to 46.5% of the new company. Electron’s shares have been suspended at its own request since June 12. Dealings in the new ordinary shares issued for the merger and the old ordinary and preference shares will commence on August 2. The final dividend of 2.6 pence makes a total up 30% on last year at 4.2 pence.
