Bell highlights UK recovery

Distributor posts solid UK performance despite 27 per cent drop in overall sales

Bell Micro is seeing some green shoots in the UK as the distributor registered a rise in local sales in its first quarter.

The US-based giant saw total revenues nosedive 27 per cent year-on-year to $730m (£484m) in the three months to 31 March. It blamed this on weakness in the US distribution market and currency fluctuations.

But Europe – and specifically the UK – was a relative bright spot.

In local currencies, European revenues fell six per cent year-on-year but increased four per cent on the previous quarter. The UK accounts for more than half of the European total and saw local currency sales rise three per cent on an annual comparison and 22 per cent sequentially.

Enterprise computers, storage systems and software were among the strongest product categories.

“We were pleased with the relative strength in Europe and the improvement in Latin American sales compared with performance in the prior quarter,” said chief executive Donald Bell.

Bell recently cut its headcount by 11 per cent and the distributor revealed that total operating expenses declined by 25 per cent in Q1 compared with Q3 2008.

“Excluding the significant decrease in audit and legal costs, we are on track to reduce our annual operating expenses by more than $60m this year,” said Bell.

“We are cautiously optimistic that a modest economic recovery, coupled with stronger seasonal demand, will result in an improved second half of the year."