Companies: ACL   

Acal, the value-added electronic components distributor, endured a 'very tough experience' (in line with the industry) in the year to March. This is in sharp contrast to organic growth in excess of 30% and record profits last time out. Profits before goodwill and tax slipped 26% to £16.6m on a 9% sales decline to £297m. Earnings per share dropped 25% to 42.4p. Nevertheless, chairman John Curry says three out of Acal's four businesses grew profits. He adds that the worst of the cycle has now passed, without the catastrophic results reported by some other companies. Its IT products, IT parts services and industrial controls arms held up well. But the electronic components side, which is exposed to the troubled telecoms and networking markets, saw sales fall 25% to £115m. Year-end net debt fell from £18.4m to £12.9m. Meanwhile, in April Acal bought spare parts distributor ATM. Investors might also take heart from an 11% total dividend hike to 18.3p. Could be worth a punt for a cyclical recovery.