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Abacus falls into losses

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Date: Wednesday 31 May 2006

LONDON (ShareCast) - Abacus Group, the electronic components distributor, fell into losses for the first half as it splashed out cash to integrate its recent acquisitions.

The group snapped up Deltron Electronics in January for £34.5m in an all share deal and acquired Axess Technology after the period end in April for €23m.

Abacus said the acquisition of Deltron led to £3.3m of restructuring and transaction costs in the three months to March as it revised its estimate for total integration costs from £6.0m to £7.1m, mostly to be booked this financial year.

The group delivered a loss of £0.5m for the period against a profit of £2.4m a year earlier, on the back of a 21% increase in turnover to £105.3m.

Chairman Harry Westropp said, “Current conditions in our core distribution business are encouraging. Current trading is in line with our expectations and we are confident in our prospects for 2006 and beyond.”