Ingram swallows diet margins in UK sales explosion

Distributor's UK results show impressive top-line expansion, but profit remains meagre

Ingram Micro's UK sales shot up by more than a third to almost £900m in 2010, but margins remain razor thin.

The US-headquartered broadliner filed UK accounts last month for the year to 31 December. Annual sales at the firm jumped more than 36 per cent to almost £887m, with total assets at year-end rising from £15m to £18m. Sales will have been boosted by as much as £100m by the acquisition in late 2009 of Computacenter Distribution.

Although profit also increased on 2009 levels, operating margins were just a quarter of a per cent, and net margins just a third of a per cent. Net profit for the year stood at a skinny £3.2m.

Staffing levels were back on the up last year at the Milton Keynes-based distributor, following a sharp decline in 2009. Average monthly employee numbers rose by more than 50 to 404 during the year. The rise was predominantly fuelled by a big increase in technical and sales staff, where ranks swelled from 181 to 229.

It was also a good year for Ingram's directors, with total boardroom pay packets rising from £257,000 to £398,000. The company's highest-paid director saw total emoluments rise from £220,000 to £285,000.