Acal has seen a stabilisation in trading conditions in the last three months.
As a result the distributor is expecting a stabilisation in revenues after the summer period.
"Purchasing Manager Indices are showing some improvement, albeit from a low level, which supports this view," said Acal in its latest trading update.
Despite an improvement in gross margins in the electronics division, there is stil a heavy dose of caution in Acal's comments. "Since our preliminary results announcement, market conditions have remained difficult, with limited visibility."
Acal's distribution business has made progress with a programme of cost reductions on back office systems.
"Whilst the performance for the first half year will reflect the difficult market conditions, we expect to see improvements in performance in the second half as cost reductions and business improvements take effect," said Acal.
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