Horizon makes it back into the black

Technology distributor Horizon made it back into the black in the first half of the year. The group yesterday announced pre-tax profits of €317,000 for the six months to June 30th, compared with a €6.2 million loss in the same period in 2002.

The group, which distributes information technology products in Ireland and the UK, said first-half turnover for the period was €128.5 million.

This was 34 per cent down on the 2002 figure of €193 million. The fall in revenues was largely attributable to the sale of a number of businesses, including Horizon's Cisco Systems training division.

This is reflected in a near halving of costs year-on-year. The group's accounts show staff and other costs stood at €20.3 million at the end of the first half in 2002, but this had fallen to €11 million by end-June 2003.

The company said yesterday that its first-half revenues were identical to those generated in the six months to December 2002. It added that this was a "more meaningful comparison" as the 2002 second-half figures also excluded the discontinued operations.

Basic earnings per share (eps) for the first half of 2003 were 0.23 cent, compared with a loss per share of 10.99 cent last year. Retained profit for the period was €148,000. The group had net cash balances of €2.5 million on 30th June, 2003.

In its statement, Horizon said distribution and channel services' revenue increased 23 per cent over the previous six-month period (that is the second half of 2002), while enterprise solutions sales fell by 12.8 per cent.

The company said that the growth in revenue in the Irish distribution and channel services business was attributable to stronger customer demand, an improvement in market share and a one-off benefit from a Northern Ireland government roll-out of IT equipment to schools.

Reduced customer spending in the UK was responsible for the fall-off in enterprise solution revenues.

Executive chairman Mr Samir Naji said that while the market had become less volatile, IT spending showed no signs of significant improvement in the short term.