Azlan takes axe to training jobs

COMPUTER distributor Azlan has cut 50 jobs from its struggling training division as part of a restructuring aimed at saving £4m a year. The firm also warned that it saw no immediate pick-up in corporate computer training budgets and that conditions remained challenging.

The move to cut about 10% of the unit's staff and close two facilities comes after its sales dipped 9% to £42.7m and profits almost halved to £4.2m.

However, Azlan's core distribution business, based on its partnership with Cisco, is proving a safe haven in the midst of the technology sector's woes. It drove up group annual net profit 14% to £18.4m on sales up 3% to £610.1m, in the year ended 31 March.

Chief executive Peter Bertram has a new £60m three-year bank facility for acquisitions, which could see its small but growing services business strengthened.

Current trading is so far about flat on a year ago. But Bertram expects further sales and profit growth this year and a £5m import duty rebate should bolster the £15m cash pile. Earnings per share rose 17% to 11.9p. But Bertram said there were no plans to end the group's no-dividend policy.