Acal 's (ACL) design and manufacturing division continued its strong run during the first half, pushing group sales up 10 per cent. The electronic components specialist benefited from last year's acquisition of three design and manufacturing companies. However, as previously flagged, organic growth was slower as global economic uncertainty weighed on sentiment.
Sales for the higher-margin design and manufacturing business grew almost a quarter during the six months to September. However, the custom distribution business suffered a 2 per cent decline in revenue. The group plans to close one unprofitable European subsidiary of the distribution business and reduce administrative costs and management numbers this year. Management expects these plans to save £4m in annual costs, although it will book a related £8m exceptional cost.
We visited Acal's Guildford office earlier this year to hear from management about its strategy for the business. Watch here.
