Insight Enterprises hints at strong UK growth

UK-focused EMEA hardware business grows by 20 per cent in Q1

Insight's EMEA sales rose 10 per cent in Q1

Global corporate reseller Insight Enterprises appears to be firing on all cylinders in the UK as it logged its first-quarter results.

For the three months to 31 March, US-based Insight posted a net profit of $9.2m (£6.1m) on revenues that rose by 10 per cent year on year to $1.05bn.

EMEA revenues also rose by 10 per cent in local currencies and Insight’s breakdown of its progress in the region suggests the UK is more than pulling its weight.

On a webcast, chief financial officer Glynis Bryan highlighted the strength of the EMEA hardware business, which CRN understands centres almost exclusively on the UK.

She said EMEA hardware sales grew 20 per cent in constant currencies during the quarter.

“[This was] due to high demand across all client groups but specifically in the public sector group where we continue to increase our presence and benefit from the effects of seasonal client budget releases,” said Bryan.

However, Insight also hinted that the changes Microsoft made to its LAR programme last year had a negative impact on its software business.

In EMEA, software revenues rose by four per cent in constant currencies compared with last year. Bryan suggested this would have been higher but for “the effects of publisher programme changes that were effective from the beginning of May last year”.

EMEA gross margins fell from 13.3 per cent to 13 per cent and Bryan also appeared to blame that fall on Microsoft.

Overall, chief executive Ken Lamneck signalled he was happy with the results.

“We are pleased with our financial performance in the first quarter, which resulted from better than expected sales and gross margin performance in North America across a leaner cost structure and in-line performance in our EMEA and Asia Pacific segments,” he stated.