Polar sees profit fall despite acquisitions

Polar sees profit fall despite acquisitions
Richard Wilson
Distributor Abacus Polar has reported a 12 per cent fall in pre-tax profits for the first six months of the year.
This was described as “slightly ahead” of expectations by company chairman, Harry Westropp. Profit before tax and exceptional items was ?3.7m on sales of ?51.3m, which were virtually unchanged from the same period last year.
“Solid profits are anticipated in the second half despite market conditions,” said Westropp. “For the foreseeable future, the Board is placing no reliance on improved market conditions for increasing profitability… Instead, the Group will continue its efforts to broaden the product offering, to build on the relationship with Rutronik and to make further acquisitions as opportunities arise.”
In early January 1999, Abacus took control of Micromark and the UK operations of the IEC Group, acquiring net assets of ?2.5m at a cost of ?1m. The contribution from Micromark to the Groups operating profits in the three months since acquisition amounted to ?198,000 on sales of ?3.8m.

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