DCC, parent of Micro P and Gem, posts 15% boost in yearly profits

Hey there US disties - what was that about local boys going out of business?

DCC Technology, parent of UK disties Exertis Micro P and Gem, danced on the grave of the recession in its latest financial year ended 31 March, reporting top and bottom line growth spurts.

The IT division of the Irish conglomerate - formerly DCC Sercom - turned over £2.26bn, a leap of 22.4 per cent on a year ago, and made an operating profit of £48.1m compared to £41.5m in fiscal '13.

Return on capital employed was up to 21.1 per cent from 16.4 per cent a year ago - another financial metric that corporate entities use to test the strength of operations.

The business in Britain accounted for 81 per cent of DCC Tech sales driven by smartphones, tabs and lappies.

"The performance was particularly strong in mobile computing and communications products," the firm said, "with increased market share achieved in both retail and reseller channels".

Accessories, airtime and outsourced product fulfilment are all services areas Exertis Micro P continues to expand into.

Organic growth was generated in "data room" kit such as servers, storage and security: hoovering up security distie Cohort Technology helped in this respect, giving it added technical capabilities, the firm said.

On the Gem side of the group, the launch of next-generation gaming consoles from Microsoft and Sony helped swell the coffers.

The sales output in continental Europe was shaped by a "mixed demand environment" and margin declined due to a shift in product mix.

"The business is focused on broadening its product portfolio and extending the range of customer channels serviced," DCC added.

There was a time when market watchers predicted that only the biggest global distributors would survive long term, DCC Technology and a raft of other local wholesalers are disproving those naysayers. ®