DiData slowed by £219m write-down

GLOBAL computers group Dimension Data has taken a further $320m (£219m) exceptional write-down against the value of its acquisitions, sending its net interim losses spiralling to $693m.

Unveiling an 11% drop in sales to $1.1bn in the six months to 31 March, chief executive Jeremy Ord said market conditions remained challenging, though global 'pockets of activity' suggested part of the group's business was bottoming out.

The Anglo-South African company said the sales loss was caused mainly by a 17% slide in turnover at its Asian Datacraft business, where it has recently changed its senior management, and the declining value of the rand, which cost it $54m.

It also said it reflected 'competitive market conditions globally and pressure on IT budgets'. There is no interim dividend. Core earnings before goodwill and exceptionals fell to $26m from $59.6m , and the cash pile derived from a £800m London float in 2000 is down to $630m.

In America, where it has spent heavily to build a presence, partly through the $448m purchase of Proxicom, like-for-like sales slipped 3% on the previous six months. The shares, listed at 520p, fell 5 1/4p to 63 1/2p.