The softness in the UK’s distribution market lies in the passive and electromechanical sectors, according to the chief executive of Acal, Tony Laughton.

The company reported interim results with sales up just 1.5 per cent to £260.9m and pre-tax profit up to £9.8m from £8.6m previously. But in the UK, Acal said: “The UK market for passive and electromechanical components has been somewhat soft.”

According to industry body, Afdec the market experienced a weak patch in March but confidence has improved.

“The softness in the UK market is not in the high end. It is not because customers are moving offshore but that these products are increasingly moving up the value chain. With solid state and increasing integration of these sorts of functions there is less requirement for the components,” said Laughton.

The firm’s growth has come from moving into higher technology products such as semiconductors, power, and RF and wireless products. Laughton said there was an enormous funnel of opportunity for these higher technology products, particulary in Italy and Germany where the firm has added 20 semiconductor focused staff.

The extra staff are especially focused on the Microchip line of products and the recruitment was due to a deal struck between the two firms, said Laughton. This leads to further sales opportunites, said Laughton, as FPGAs need a
microcontroller. Acal also distributes Actel.

Specialised semiconductors accounts for an increasing portion of the firm’s sales with a target for between 45 and 50 per cent in a few years’ time, according to Laughton. Meanwhile, restructuring at the passive and electro­mechanical level of the firm has seen the merger of Radiatron with Acal Technology.

www.acal.co.uk