Reseller Gresham Computing last week issued a profit warning as the cost of a company-wide restructure and the poor start to the year took its toll.
In a statement, the troubled VAR announced its results for the six months to 30 April would show a loss slightly greater than those of the previous two quarters.
The pre-tax loss for the six months to 30 October were £1.9m after exceptional items and before goodwill, a period of sales that the company at the time said "had deteriorated with unprecedented speed".
The decline resulted in a boardroom coup, with the resignation of Gresham's chief executive, chairman, chief technical officer and two other directors (CRN, 12 April). The company appointed a new management team in April, including chief executive Andrew Walton-Green (CRN, 26 April).
Although Gresham said the difficult trading conditions of the second half of last year continued into the first quarter of the current year, it claimed that there were early signs of improved market conditions.
Gresham anticipated that it will return to month-on-month profitability by the end of the year.
The company also said that because of a strategic review, it has a clear strategy focused on niche business areas: automated Web testing, banking and finance systems, e-business integration, niche products and specialist recruitment.
However, sources close to the company told Computer Reseller News that Close Bros had resigned in April as Gresham's commercial adviser and the VAR had not appointed a replacement.
The company added that it intended to drop many processes and technologies that are not core to its business and are not being exploited fully.
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