Distributor sees slight drop in profit which is blamed on a challenging market environment
CMS Peripherals’ holding company StorIT Group has attributed its slight drop in profit to declining margins in the IT sector.
The distribution group saw gross profit for the financial year ended 31 August 2006, drop from 7.6 per cent (€10.9m) in 2005, to seven per cent (€9.9m) in 2006.
Its financial report said: “We operate in a challenging market environment, where margin erosion is prevalent across all our market sectors.”
However it also posted what it claimed was ‘record’ turnover - €155.8m for the year, a 19 per cent increase on the €131.2m posted in 2005.
The firm also saw a change in management in 2006, with Freddie Jones joining as UK managing director.
Frank Salmon, group managing director of StorIT, said: “We are pleased with the performance especially the revenue growth, despite the decline in margin percentage.
“The team has delivered a good result driven by strong growth in storage software and niche areas of storage hardware. We aim to continue to identify market opportunities along with being more efficient, thus more effective for both our customers and distribution partners.”