HP: Hewlett-Packard’s UK profit quadruples despite sales slump
Profit at the UK arm of Hewlett-Packard (HP) almost quadrupled during its latest financial year despite its sales being slashed by nearly £150m.
The division of the US tech giant has posted a pre-tax profit of £97.6m for the 12 months to 31 October, 2024, according to new accounts filed with Companies House.
The total comes after HP reported a pre-tax profit of £26.6m in its prior financial year.
However, the new accounts also show that HP’s revenue in the UK was cut from £948.2m to £805.2m over the same period.
HP said its sales fell by 15 per cent “mainly as a result of softened demand”.
It added that it is continuing to launch “certain initiatives” that will aim to generate revenue growth in future years.
HP also said its operating profit, which surged from £2m to £61m, rose because of a reduction in the expected credit loss provision against inter-company balances as well as lower restructuring expenses.
A statement signed off by the board said: “In 2024 the company continued with cost reduction programs that the directors believe will benefit the company in the future.
“The directors recognise that achieving the balance of long-term and short-term objectives is key to future profitability.
“This profitability allows the company to reinvest in new and emerging business opportunities and is highly correlated to generating cash which brings more flexibility to the business at a lower cost.”
Mike Lynch’s estate ordered to pay HP £700m
The results come a day after former tech entrepreneur Mike Lynch’s estate was ordered to pay Hewlett Packard Enterprise just under £700m in conclusion to the fraud linked to the $11.1bn sale of Autonomy.
Lynch founded software firm Autonomy in 1996 and, along with Autonomy’s former chief financial officer, Sushovan Hussain, he went on to sell the firm to HP in 2011.
At the time, the deal was the largest-ever takeover of a British technology business.
However, HP went on to sue Lynch and Hussain in the High Court over claims they artificially inflated Autonomy’s reported revenues, growth and gross margins.
The lengthy piece of litigation went to trial in 2022 and resulted in an even longer judgement, which ruled in favour of HP. The American tech giant originally sued Lynch and Hussain for £3.7bn.
Lynch was then extradited from the UK to the US to face criminal charges in San Francisco. He pleaded not guilty, and last June, an American jury found him not guilty, acquitting him of all charges.
However, in August, Lynch, along with his daughter, Morgan Stanley International Bank chair Jonathan Bloomer, and Chris Morvillo, a partner at magic circle law firm Clifford Chance, were confirmed dead after a superyacht capsized in Sicily.
