A raft of consolidation and solid growth in international markets helped distributor VIP Computers post double-digit top- and bottom-line growth in its 2013 fiscal year.
Accounts recently filed with Companies House reveal that the Warrington-headquartered components distie grew group sales for the 12 months to 30 June 13.6 per cent year on year to £204.66m. Operating profit spiked 16.4 per cent to more than £2.3m, equating to operational margins of 1.14 per cent.
The numbers include a full-year contribution from CMS Computers, which VIP acquired in November 2011. A year ago the group also announced it was merging its Realtime Distribution arm with its flagship VIP brand, and the annual report reveals this "exercise was completed in March 2013".
In FY13 the distribution group posted top-line growth across the globe, with its overseas operations enjoying particularly rapid expansion. UK sales rose 6.3 per cent to £98.7m, while revenue in mainland Europe increased 13.5 per cent to £88.7m. The directors' report for the year outlines that the VIP Benelux unit "had a significant impact on group performance", with turnover growing 17.75 per cent to £81.6m. This equates to 41 per cent of the global total, compared with 39 per cent in the prior year.
Revenue in the rest of the world jumped 88.6 per cent to £17.2m. The sales contribution of VIP's Dubai office was £7.6m, while the US chipped in £7.7m. The transatlantic arm also enjoyed comparatively strong margins, with operating profit coming in at £381,000.
"The outlook [in the US] is considered bright, with good growth expected in 2014 as the business moves into new areas," adds the directors' report.
UK channel-focused system builder CMS also enjoyed a stellar FY13, with turnover growing more than 40 per cent to £27.1m. Underlying operating profit also leapt from £176,000 to £905,000, VIP claims.
Other developments during the year included the opening of a new £1.6m extension to its warehousing facilities in Warrington. The directors' report concludes that further investments in its logistical clout will help fuel continued growth in the ongoing financial year.
"VIP remains committed to the sector and this is evidenced by continuing infrastructure investment in 2013," explains the report. "A group-wide ERP system will be commissioned in the 2014 financial year, [and] the directors are optimistic that new capabilities will be added to the group via the enhanced infrastructure, acquisition, and focused business development."
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