Acal becalmed.
Investors Chronicle - magazine and web content, November, 2007
Electronic components distributor Acal's dividend could be at risk if markets remain flat Tim Bradshaw
Electronic components distributor Acal is selling its IT solutions business to giant reseller Avnet, for GBP41m. Margins in the business halved in recent years, says chief executive Tony Laughton, due to commoditisation. That left it out of step with Acal's "value-added" approach, which entails helping its customers design its products into theirs. This consultancy role enables Acal to charge higher margins, but can also mean a nine to 24 month time lag before the final products come to market.
Mr Laughton says Acal has done well to keep sales flat, despite poor market conditions in the remaining businesses. In Electronics, investment in new...
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