The Channel logo

News

By | Team Register 1st September 2005 15:05

Value added reselling is dead - Morse chief

Hard cheese for hardware

Value added reselling based on computer hardware "is dead", according to Duncan McIntyre, CEO of Morse Group, the corporate reseller.

In a webcast yesterday accompanying full year results, Mcintyre said that commoditisation of computer hardware was a permanent fixture. But he sees “significant opportunities” in his own business for profits from a slimmed-down reselling stall nestling within a bigger services sales pitch.

Morse remains a big supplier of computer hardware in its home UK turf, but it has set its sights on transforming itself into a business where services accounts for 70-80 per cent of revenues.

Service revenues for the year to June 30 increased by 52 per cent, much of it driven by the £50m acquisition of Diagonal, a SAP specialist. But 16 per cent of growth was organic. Services now accounts for 44 per cent of group revenues. Pre-tax losses widened to £18.3m (£12.4m) on sales of £429.5m (£390m ).

In July it sold its loss-making £44m t/o French business for the knockdown price of €1 (and maybe some more) because it was too much of a reseller and not enough of a services business. The cost of transformation would have been too much, it said.

The company continues to operate in Germany, Spain and Ireland, where services account for 34-52 per cent of revenues.

Morse results are here (pdf). ®

alert Send corrections

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust