CRC slides as Nokia cuts repair work

MOBILE phones repairer CRC today posted a 40% slump in first-half profit after its biggest customer, Nokia, sharply cut the amount of business it gives the group.

Pre-tax profit fell to £2.9m in the six months to 30 June from £4.8m a year ago, while sales tumbled to £36m from £58m.

Nokia last year accounted for about 73% of CRC's sales but announced in June that it was taking the supply of spare parts and repairs under guarantee in-house.

This year Nokia is expected to make up about 57% of CRC's sales.

'The key issue that affected the first-half result was the fall in handset repairs as a result of the reduced business from Nokia,' said CRC chief executive Alan McLaughlin. 'But telecommunications has also been a very difficult market in general.'

Despite the conditions, CRC's operating margin slipped only marginally to 8% from 8.2%.

McLaughlin said he was cautiously optimistic about an improved second-half performance, with repair volumes increasing and the health of the telco sector improving.

'It's not going to be an easy market, but we are beginning to see signs of stability in volume repairs,' he said.