PC specialist does not want to waste money on expensive acquisitions

More than one and a half years after its IPO on the New Markets, the PC Specialist Franchise AG Bielefeld havent touched the procees from their flotation. “We have intensively spoken about the subject acquisition and have come to the conclusion that we do better when we look to after our franchise partners.” Frank said Roeber, CEO of computer chain, said Wednesday in Frankfurt. Potential takeover targets are not only expensive but would water down their own margins, he commented.

While the PC Specialist Group sales last year according to your specifications by 152% to 18.7 million euros, increased increased profit before interest and taxes (EBIT) by only 41% to 4.95 million €. The alarmed by the discrepancy between revenue and earnings caused halving the EBIT margin to 23% but only at first glance. “Through the introduction of the virtual distribution in the last fiscal year, the calculation basis for the EBIT margin grundsätzöich changed,” said Roeber.

So far, PC Specialist negotiated only with the computer vendor. There has been a contract between the supplier and a franchisee of the Company, PC specialist was reliant on the suppliers of the agreed commission of 1% also paid. Switch off the virtual distribution via the Intranet, the Bielefeld now a contract between a supplier and partner companies. Therefore, the franchisee pays the provided computer to a PC specialist, which in turn pays the supplier. Thus took advantage the company Roeber considered not only by the generally higher contractual obligation of its own partners, but can deduct a higher commission proportion of 3 to 4%, since the online order system suppliers to the supplier to make significant savings. Of the 190 suppliers that are working PC specialist, have been reported to be convinced, only eight of the benefits of virtual distribution. This is however by far the most important, because with them, 80% of sales generated.

Under the umbrella of the company two brands are combined. While PC specialist, summarizes the franchise with 142 partner companies, provides 100 per cent subsidiary of Trend Micro, the existing purchasing structures also companies that can take any franchise relationship or want. In the past fiscal year were both areas in equal parts to operating profit. The lion’s share of sales accounted for approximately 14.4 million euros to the franchise business. For 2001, aims to Roebers, sales doubled to 49.3 million € to more than. EBIT is expected to increase to 5.9 Mill, meanwhile, DM. The share price closed on Wednesday at about 5% lighter € 17.14.