PCWB interim sales defy gloomy market
Firm reports 28-week turnover up 17 per cent on previous year
In contrast with other retailers' woes, PC World Business (PCWB), part of the Dixons Group, has reported strong interim financial results, following its parent firm's acquisition of reseller Micro Warehouse last year.
PCWB's sales for the 28 weeks ended 13 November were £115m, up by 17 per cent on the previous year. Combined sales of PCWB and Micro Warehouse grew by 71 per cent to £168m.
The Dixons Group acquired Micro Warehouse last year for £20.7m. John Clare, chief executive of the Dixons Group, said trading conditions had been very competitive.
"We strengthened PCWB's position in the fragmented business-to-business sector through the acquisition of Micro Warehouse," he claimed.
The Dixons Group, which reported profit before tax for the 28-week period of £136.5m on sales of £3.4bn, claimed PCWB operates on lower gross margins than its sister company PC World. But it added that it does not have the costs and capital investment of the store business.
A survey by the British Retail Consortium reported last week that UK retailers have just faced their worst Christmas in 10 years.
Rachel Power, an analyst at Canalys, said: "PCWB seems to have done quite well, and compared to the rest of the Dixons Group it's quite positive.
"Its growth rates are positive, particularly in a declining market. It has done a good job of integrating the two companies."
Separately, corporate VAR Computacenter has predicted that its global group profit before tax will be in line with market expectations for the year ended 31 December. Its preliminary results are due in March.
The firm said its managed services business continues to grow well, although product margins remain under pressure from continuing price declines.