17 December 2015 – trading update
The global distributor of technology products has issued a trading statement covering the period from the beginning of August to 1 November and full year operating profit is expected to be in line with previous guidance although towards the lower end of expectations. The company has also completed its operational review which has identified potential cost savings of £19m on an annualised basis. The full effect of these may not be felt for some time though and the group continues to suffer from margin pressure and difficult trading conditions. We therefore reduce our recommendation to HOLD.