Diploma Plc, the electronics to bricks holding company, has once again reported healthy mid-term profits for its for its computer-related business. Broadly, the electronic division, comprising The Macro Group, Nortronic, Rayfast and South Hills Datacomm saw a 17% increase in profits with sales up 10% despite what the company regards as an overall gross market erosion. Overall, group pre-tax profit rose 17% to ú13.5m on turnover of ú107.5m, 19% up on last time. Both Macro and Nortronic were said to be performing well, reflecting that the anticipated tail-off the company’s semiconductor business, predicted by chairman Christopher Thomas almost two years ago, has failed to emerge. Instead an increase in microprocessor and memory sales for the personal computer market has spawned a separate division, Macro Flashpoint business, which will deal entirely with this area. Diploma has also set up a Value-added Centre in Crewe, Cheshire, to handle value-added services such as programming and product customisation for both the Macro and the Nortronic subsidiaries. Diploma reported healthy book-to-bill ratios, and says it believes they will stay that way while other silicon manufacturers struggle to supply an ever increasing demand from ever-diminishing stocks in their warehouses. The situation will lead to some manufacturers having to put their products on allocation but Diploma won’t be one of them, it says.
