VAR Scan Computers passes £60m in FY13 sales surge

Margins take a hit but Bolton firm still gives shareholders monthly dividend

VAR and retailer Scan Computers enjoyed solid sales growth to surge past the £60m mark in its 2013 fiscal year, although margins took a hit and operational profit declined by more than a third.

The Boltonian firm, which also sells online, saw sales for the year to 30 June 2013 increase 8.3 per cent year on year to £63.8m. But gross margins fell by 137 basis points to 7.42 per cent, and this translated to a reduction in operating income from about £800,000 in the prior year to less than £500,000 in FY13.

In better news, revenue per employee continued to increase, nudging up to more than £430,000. Since 2011 this figure has grown by almost £50,000. But a rise in headcount from 138 to 148 saw the annual wage bill increase by almost a quarter of a million pounds to £3.35m.

The directors' report for the year claims that Scan's gross assets rose 5.9 per cent during FY13 to £16.36m, while cash reserves as of year-end stood at £3.59m - up from the £2.68m figure of 12 months previously.

No final dividend was paid, but 12 £20,000 interim dividend payments of £20-a-share were paid at monthly intervals during the year, totting up to £240,000 in shareholder returns. Total shareholder funds at the close of FY13 were a little over £7m, up slightly from the prior-year figure of £6.83m.

The directors' report says: "The company has continued to refine its reputation as a locally and nationally renowned seller of computer equipment while generating further growth, despite the competitive nature of the market in which it operates."