A first-half growth spurt has put CCS Media on course to hit £150m revenue this year, according to managing director Terry Betts, who welcomed the impact Brexit could have on the industry.
The Chesterfield HP and Microsoft partner claims sales in its fiscal first half to 30 June rose 26 per cent to £72m.
Betts attributed the rise partly to an increase in average order size and said the record haul puts CCS Media in line to see £150m revenue this year.
"The number of orders increased in line with the increase in headcount here. But the increase in average order value is probably because my consumable sales, like toner cartridges, have decreased," he said. "They are quite cheap, and my hardware sales and services have risen, which are higher value."
Betts said consumables sales are falling because customers are increasingly moving to managed print services. This is a subscription-based contract where customers pay monthly and use the services as and when they need them, rather than buying separate consumables.
"We will maximise consumables as much as possible," he explained. "But the market is going more and more to a managed contract. We are ready for the market to move to subscription. That is where I believe everything in the market will eventually go, to a subscription service."
CCS Media's best-performing vendors in the first half of 2016 were Cisco, Microsoft and HP Inc, according to Betts. He attributed the performances to the good relationships the VAR has with each vendor.
"We've got good partnerships with them. We set up specific teams for each and are working very well with them. We believe we can grow our business with them," he added.
Betts said that the day of the EU referendum saw the highest revenue for the VAR ever, with July looking to see a 20 per cent increase in revenue year on year.
He added that he believes the price increases brought on by Brexit are a good thing for the industry.
"Generally, price increases are good for the industry as far as I'm concerned," he explained. "It means we don't have to sell as much to make the same amount. Deflation means we need to keep selling more and more. But if prices went up by 10 per cent and the market stayed the same, we would grow by 10 per cent. People forget that is how it goes. I really welcome price increases."
The biggest challenge CCS Media saw in the first half of the year was shrinking margins, said Betts.
"The margins have been gradually slipping. That is down to price competition," he added. "The market is becoming quite competitive, which is putting a strain on our margins slightly. As competitors reduce their prices the only thing I can do is increase my services. But if everybody decreases their prices, I do have to follow the market."
Security firm set to become part of acquisitive Shearwater Group
Distributor merges three northern sites into one new hub in Warrington
Activist investor puts forward five director candidates as turmoil continues at security giant
Nima Green asks what is driving public cloud uptake in Germany