US growth boosts Systemax

Etail specialist Systemax's 2008 revenue grew nine per cent to $3bn (£2.1bn) as acquisitive US growth helped offset a flat year in Europe.

The company, which owns Wellingborough-based online VAR Misco, saw global revenue rise six per cent year on year during the three months to the end of December. Fourth quarter revenue stood at $812.7m while worldwide net profit was $10m, down 58 per cent on Q4 2007.

North American technology product revenue rose 18 per cent on last year to $540.7m while in Europe it declined 14 per cent to $216.9m. Q4 2008 was also a week longer than its 2007 equivalent and average daily sales dropped off $200,000 to $8.3m.

Gilbert Fiorentino, chief executive of Systemax's technology troducts business said: "During the quarter, we selectively lowered prices and offered special freight incentives to attract new customers, grow market share and position the company for continued growth when the business environment improves. While this had a short-term impact on gross margins, we believe it will position us very well with a larger customer base when consumer spending returns."

Global revenue for the whole of 2008 rose nine per cent to $3bn while net profit dropped 24 per cent to $52.8m. North America again led the way, with technology product revenue up 14 per cent on 2007 to $1.9bn. In Europe, the figure edged up one per cent on last year and stood at $940.6m.

The US growth can be largely attributed to Systemax's acquisition of retailer CompUSA at the very beginning of 2008. Last January, Systemax nabbed the CompUSA brand, its etail business and a number of retail outlets after tens of stores had been liquidated over the past couple of years.

Systemax has also announced that chief financial officer Larry Reinhold has been appointed to the board of directors. He has been at Systemax for two years and previously worked for medical technology specialist Greatbatch and software house Critical Path.

Chief executive Richard Leeds said: "Larry has been a valuable addition to our senior management team at Systemax. We look forward to continuing to benefit from his extensive financial expertise and operational experience."