Misco owner Systemax hails double-digit UK growth
Local sales booming but company as a whole posts substantial loss
Global reseller and retailer Systemax claims it is growing by double digits in the UK thanks to an investment in local sales staff.
The New York-listed firm saw total sales fall 4.4 per cent year on year to $935.2m (£620m) in its fiscal fourth quarter ended 31 December 2012 as its US retail business continued to struggle. It also made a substantial loss.
However, its European B2B tech business – which includes UK brand Misco – saw sales power up six per cent in Q4 and 10 per cent for the full year.
The company put this down to continuing market share gains in the UK and France.
"Our two largest markets, the UK and France, generated double-digit increases and continued to gain market share as we capitalised on sales staff investments and attracted new customers in both markets," chief financial officer Larry Reinold said on a Q4 earnings call, a transcript of which can be found here.
Systemax recently announced it will open a shared service centre in Budapest later this spring, which CRN understands will be helmed by UK general manager of Misco Sandy Price.
The firm's sales, general and administrative expenses rose by about 100 basis points over last year, which it said reflected the investment in new sales agents and the building of its leadership team to support its pan-European structure plans.
Globally, B2B sales grew 2.5 per cent to $526.7m in Q4, while consumer sales plunged 12.1 per cent to $408.5m.
GAAP operating losses hit $46.8m, compared with a profit of $21.1m a year previously, although most of the deficit can be explained by write-offs and write-downs relating to its US retail business and its recent exit from the PC manufacturing business.
Chief executive Richard Leeds said: "In our consumer business, buying patterns remain challenged, in part due to an eroding demand and pricing."
On the call, he added: "Overall, we remain pleased with the performance of our B2B operations with consolidated sales up moderately for the quarter and full year."