TaxPersonal TaxNewswatch – Computerland profits to rise

Newswatch - Computerland profits to rise

ComputerLand UK is tomorrow expected to announce an increase in pre-tax profits to around £1m from £586,000, despite an earlier profits warning.

The company, which provides IT products and services to UK companies, issued the warning in March this year. It said its results would be ‘significantly below expectations’ because of an unexpected fall in product sales during last December and January.

Finance director Michael Kent has faced the battle of turning around the company’s fortunes. His efforts, and those of chief executive Graham Gilbert, appear to be working well. Analysts are predicting that pre-tax profits will rise to about £1.4m next year.

The 37-year-old joined ComputerLand in April 1998 from clothing and footwear manufacturer Sherwood Group last year.

Soon after his arrival, ComputerLand was busy integrating the sales, service and back office functions of two recent acquisitions – Netman and KDL. In December of last year the company announced this work was complete. According to Gilbert, ComputerLand was in an ‘excellent position to realise the full benefits’ of its recent acquisitions during the second half of the year.

City analysts marked down the 1998 profit forecasts from £1.7m to nearer £1m as these ‘benefits’ failed to materialise in a market where hardware sales were down across the board.

The company floated on AIM in September 1997, since when its share price has tripled, a rise in common with other companies in the sector.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter