Datrontech Plc has shown no sign of quenching its thirst for acquisitions. The Aldershot, UK-based distributor added another two companies to the expanding organization during the first six months to June 30. Summit Peripherals, a Colchester, UK-based data storage specialist was acquired in April for a maximum consideration of 1.63m British pounds and Connectivity Group was acquired in June for a maximum of 6.4m pounds. Connectivity supplies a range of specialist communications products for use in networks. The purchases were partly funded by a placing of Datrontech’s shares. The firm is now thought be considering the acquisition of an education specialist. Despite difficult trading conditions in the memory market, Datrontech reported a strong interim performance, and said progress was achieved in all territories. But last month the group was forced to sign another personal computer OEM partner after its unbranded Intel Corp machines proved too expensive for mainstream offerings from system builders. Pre-tax profits rose 29% to 3.7m pounds on revenue that jumped 76% to 94.6m pounds, 2.6m pounds of which derived from the recent acquisitions. The total value of memory sales increased as a result of a continued increase in demand for memory products, and the company has managed to reduce the proportion of sales attributed to memory to 52% from 64% at the same time last year. The recently acquired C-Connect Swiss subsidiary reported a 21% growth in operating profits during the half, partially boosted by its expansion into other products within the group. Tight financial controls have been maintained throughout the period, and due to the international memory price crash, stock levels in particular have been closely monitored. Since the end of the first half the group has launched a client-server division, and has been awarded a UK personal computer server franchise by the Pyramid division of Siemens Nixdorf Informationssysteme AG. Chairman Ian Kirkpatrick said the company considered Softbank Corp’s announcement to acquire Kingston Technology, Datrontech’s largest supplier, to be very positive. And although the memory market shows no sign of recovery, he said the group is confident the current strategy of diversifying into new growth areas of computer component distributors would produce satisfactory results for the full year. A 2.1pence interim dividend, up 11% is proposed.
