B-brand fever boosts CMS' numbers

Storage customers becoming less brand-sensitive, distributor claims as it posts 45 per cent sales hike

CMS Distribution claims the market is gravitating towards the B-brand storage technology in which the firm specialises after posting a surge in annual sales.

The Anglo-Irish distributor's holding company, Storit, saw sales rocket 45 per cent to €164.4m (£138.4m) for the year ended 31 December 2012. Pre-tax profits rose from €1.8m to €2.7m.

Stripping out the contribution of CCI – the Harrogate-based distributor CMS bought in September 2011 – sales rose by 22 per cent, ahead of the 20 per cent organic growth target set by management.

CMS' Irish operation contributed €25m to the total.

Founder Frank Salmon attributed the growth partly to CMS' ability to retain key staff, but also claimed the market is shifting in his firm's favour as storage customers become less picky about brand.

"There is a shift from the household A-brands such as HP to more of the B-brands like Quantum, QNAP and Synology," he said. "The reliability and quality is there, but people are seeking more value. We have an extensive portfolio of B-brands that fits this current climate very well."

Salmon (pictured) said the acquisition of CCI transformed CMS Distribution into the UK's largest storage distributor but revealed he is already running the rule over further acquisition targets.

"It would have to be complementary to what we are doing in storage but we are looking to enhance our product and solution offering to our customer base and expect to acquire another company this year," he said.

Salmon added that CMS is gunning for 20 per cent organic growth in 2013, way ahead of the flat figures being posted by its multinational rivals.

"Indigenous companies can offer that agility and flexibility and if you can offer true value-added services, the channel recognises that and rewards you," he said.