P&P Plc has posted its first results after selling its high volume, low margin distribution business to Merisel in April this year (CI No 2,135). The company has reported pre-tax profits doubled to UKP2m on turnover up 14.4% at UKP104.8m before turnover from discontinued operations of UKP17.0m this time, and UKP27.7m last. The company has UKP4m cash in hand, up 66.6% from last time, although shareholders funds dropped 12.7% to UKP40.5m, due to an UKP8.9m provision made for the sale of the operation in last year’s accounts. Optimistically, the company hiked interim dividends by 0.1 pence to 0.8 pence. Our ongoing strategy has been key in the improved profitability, said P&P’s marketing manager Nick Melvin. We’re focusing away from high volume low margin distribution activity. P&P sold its low-end business to Merisel Inc for a figure said to be just over UKP500,000. In 1988, P&P was heavily involved in low end hardware distribution which traditionally brings in little profit, but it refocused to become a service-oriented firm. Half the staff is now involved in services, including training.
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