Micro-P owner toasts bumper first half

Anglo-Irish distribution group enjoys double-digit sales spike

Micro-P and Gem owner DCC Sercom has posted a double-digit revenue rise for its fiscal first half of 2013.

DCC Sercom, which is part of Dublin-listed group DCC, saw revenue from continuing operations rise by 20.3 per cent – or 13 per cent in constant currencies – in the six months to 30 September to €922.2m (£737m), year on year.

This excludes the contribution of pan-European VAD Altimate, which DCC flogged to Arrow for €48.1m in April.

On top of UK outfits Micro-P and Gem, Sercom operates several distribution brands in Ireland and France, including Sharptext and Banque Magnetique, as well as a global supply chain business.

Operating profit from continuing operations leapt 11 per cent – or four per cent in constant currencies – to €15.8m on an annual comparison. This meant operating margins fell slightly, from 1.9 to 1.7 per cent.

Sales of PCs and tablets to the consumer and SMB markets grew "very strongly" during the period, DCC said in a Stock Exchange announcement yesterday. Sercom's performance was also boosted by investment in its mobile communications business unit, which DCC said is well placed to exploit the convergence of the IT, consumer electronics and mobile markets.

However, Sercom's home entertainment business, which generated about a fifth of Sercom's sales last year, struggled as demand for games consoles and software slowed.

The wider DCC group, which also has interests in the energy, healthcare, environment and food and beverage sectors, saw total sales spike 32.5 per cent to €6.05bn in constant currencies. Pre-tax profits rose 0.7 per cent to €53.4m, allowing for the weakening euro.

According to its website, DCC last year drew 30 per cent of its sales from PCs and servers, with between eight and 10 per cent coming from consumables, consumer electronics, printers and peripherals and networking, respectively. Storage generated four per cent of the total, business software three per cent, and communications six per cent.