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Logicalis numbers improve in second half

Microscope contributor

Logicalis UK has filed a "solid" set of numbers for fiscal 2010 with the top and bottom lines holding firm as customer demand began returning, particularly in the second half of the year.

The integrator posted a 1.4% rise in sales to £178m for the 12 months ended 28 February, while £3.8m operating income was largely flat year-on-year, as was profit after tax at £2.86m.

The shape of Logicalis' financial year revealed the improving sentiments among its client base with 75% of EBIT made in the final six months compared to the historic average of 60%.

"The [previous] government did not handle the economic situation positively and businesses battened down the hatches until they got better clarity of how things were shaping up, " said Logicalis UK and Ireland boss Tom Kelly.

"In the second half of the year the purses were opened to a reasonable degree," told MicroScope. "This was a solid set of results that we are pleased with, delivered in a very tough economic and uncertain economic environment."

Debtors went up a little shy of £3m to £46.3m, while creditors increased from £60m to £79m. Cash in the bank was a healthy £23m up from £9.7m in fiscal 2009.

"We ended the year with a very positive cash balance and that will have a positive impact with the credit rating agencies which will give customers a high degree of confidence in our ability to weather the economic storm," said Kelly.

Operating costs before management charges fell from £29m to £26.5m helped by a reduction in staffing costs, with the workforce dropping from 442 to 417.

Logicalis, along with the rest of the IT channel, will be watching developments with bated breath next month as chancellor George Osborne publishes the autumn spending review.

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