Electron accelerates

IN THE first year since Electron House sold out of the high-volume, low-margin computer business and returned to its electrical component roots, pre-tax profits soared by 58 per cent to pounds 2.2m on higher margins, writes Topaz Amoore.

Last August it sold Bytech, a computer wholesaling subsidiary, to its management in a deal worth pounds 9m, including pounds 4m of debt. Electron's gearing came down from 110 per cent to 23 per cent in the year to 31 May.

Turnover of continuing operations was up 25 per cent at pounds 78.4m. 'Inquiries are actually being translated into orders, and have been billed,' Robert Leigh, chairman, said.

Interest payable fell from pounds 2.7m to pounds 1.2m. Mr Leigh said it would continue to fall, as the business was now generating cash.

Earnings of 4.9p were up by 88 per cent at 4.9p. The final dividend was lifted by 14 per cent to 1.55p, giving a total of 2.6p (2.35p). The shares closed up 4p at 94p.