Booming gadget demand fuels Alba

THE CONSUMER boom is playing out well at electronics group Alba, which reported a surge in annual profits today.

The company, whose brands span Bush televisions to Breville toasted sandwich makers, acquired German consumer electronics group Grundig in January. Although just six weeks of Grundig‘s results are included in the annual figures, Alba said it was looking forward to a significant contribution in the current year.

The e80m (£54m) acquisition of Grundig gives Alba the platform for greater growth outside the UK. Grundig, bought by Alba in partnership with Turkish group Beko, means the group now has sales offices in Australia and 11 countries across Europe.

Chairman John Harris said profits improved by 17% on the £26.5m recorded a year ago and current trading remained strong.

'I am excited by the prospects of returning Grundig into a profitable and successful global entity,' he added.

Alba makes household electrical products ranging from TVs, DVD players, cameras and digital radios to kitchen appliances, microwaves, power tools and gym equipment.

It also makes telephone equipment under the Betacom, Answercall, Cable & Wireless and NTL brands.

Alba is also developing new electronics gadgets and products, including larger screen LCD televisions and personal digital video records that can store up to two hours of film.

The endorsement of of household goods by celebrities was a key reason why sales in the division exceeded £150m this year compared with £135m in 2003.

The Antony Worrall Thompson brand of kitchen products and the Nicky Clarke range of personal care products all sold well, the company said.