UK to see higher pricing as Europe struggles

“There has been some increase in commodity semiconductor pricing from some suppliers. There has been some expansion in lead times but it is not a period of allocations or shortages yet. The signs are that in the next six months there will be a period of higher prices and longer lead times,” Martin Kent, CEO of Abacus told EW.

However, the market in mainland Europe is not improving as quickly. In Italy Abacus has paid for the remaining stake of distributor ECC, making it wholly owned by Abacus. “In Italy it is a tough market. In the UK growth is a customer demand growth but there is not an upturn in the Italian market,” said Kent.

ECC has 58 staff and is headquartered in Milan.

Abacus favours an acquisition to carry out further expansion in Europe. But Kent said the firm would not rush out to buy something just to be in a market. “The opportunities are not that great at the moment, the market has consolidated,” he said.

In the meantime Abacus has been expanding its Trident displays business in mainland Europe, adding eight sales staff in Italy and the Nordic region. Kent said it was too soon to comment on additional Trident sales in the two areas.

UK business accounts for 70 per cent of Abacus’ total sales, which grew in the interim period to March 31 to £77.7m from £73.2m previously. ECC added a further £13.7m in sales and pre-tax profit was four per cent down at £4m.