Electron House Plc, the Reigate, Surrey-based components and systems distributor, seems to be on the mend. Pre-tax profits for the six months to November 30 jumped 172% to UKP595,000 on sales that were maintained around the UKP60m mark. Chairman Robert Leigh puts this veritable triumph over the recession down to the restructuring programme implemented by the company last year. One of the measures Electron has recently taken is to let go its loss-making Kelvin Impex agency company in a management buy-out, which will be written off in the full year accounts. The disposal has reduced Electron’s bank debts by UKP300,000. By business, computer products and systems increased both profitability and turnover, to UKP1.2m and UKP38.6m respectively. Electronic components, meanwhile, reported a decline in business, bringing in UKP1.2m pre-tax profits on sales of UKP21.5m. The detioration in components revenues lies at the feet of the UK, which saw profits fall to UKP661,000 from UKP995,000 on revenues down to UKP14.8m from UKP16.4m. Australia and New Zealand, meanwhile, have picked up, following their reorganisation last year. Leigh retains a cautious outlook on the coming months, concluding that demand remains difficult to predict; despite the trend that Electron’s second half is usually stronger, Leigh recognises that the government’s recently-imposed moratorium on local authority spending in Northern Ireland will limit sales to that market.
