HP blames 17% drop in revenue on industry-wide supply issues


Directors of an Irish unit of IT giant Hewlett Packard (HP) blamed the 17% drop in revenue to 81.19 million euros last year on unprecedented demand for electronic devices and the constraints of related industry-wide supply.

Accounts recently filed by Hewlett Packard Enterprises Ireland Ltd show that the company’s pre-tax losses increased by 8% to €6.45 million in the 12 months to the end of last October.

This follows the drop in revenue from €98.24 million to €81.19 million.

Directors say that in addition to revenue being hit by industry-wide supply constraints, the business has also been impacted by Covid-19 related delays to the global logistics environment.

They state, “As a result, in the second half of fiscal 2021, we experienced a shortage of electrical components with logistics timing issues that resulted in significantly higher levels or product backlogs and costs. base in our hardware segments and in particular computing and storage. ”

The directors say that “currently, we expect these difficult supply chain conditions to persist in the near term.”

Personal

The number of employees of the company last year increased from 185 to 163. Personnel costs of 21.53 million euros include redundancy costs of 2.64 million euros last year and this follows redundancy costs of €3.8 million in 2020.

The activity recorded an increase in pre-tax losses after taking into account an asset depreciation of €1.76 million.

The directors specify that “the fall in the financial result was mainly caused by a depreciation of the ‘right of use’ assets of €1.76 million, following the ‘Edge to Office’ restructuring plan which involved the release of certain premises “.

The directors state that the company “continues to launch certain initiatives aimed at generating revenue growth in the years to come, by improving service delivery for better quality and lower cost”.

The principal activity of the company is the marketing, sale and maintenance of computer equipment and the provision of related advice to client companies.

The administrators specify that the results of last year “are in line with business forecasts and expected performance”.

The directors state that the company “continues to launch certain initiatives aimed at generating revenue growth in the years to come, by improving service delivery for better quality and lower cost”.

At the end of last October, the company had shareholders’ equity amounting to 80.46 million euros. The firm’s cash position amounts to €5.18 million.

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