Logicalis UK joins £200m club in blockbuster FY14

Margins, turnover, and staff numbers see a big spike as VAR invests for success

Logicalis UK soared past the £200m annual sales mark and increased its profit margins during a robust 2014 fiscal year.

Accounts filed with Companies House this week reveal that Logicalis UK Limited grew turnover for the year to 28 February by five per cent annually to £203.9m. Pre-tax profit increased by more than 30 per cent to £3.5m. Total shareholders' funds as of year-end stood at £20.7m, an increase of more than £3m on the prior-year figure.

The top-line expansion was achieved despite a big drop in turnover in mainland Europe and the rest of the world. Logicalis UK's sales into the rest of the EU fell from £9.8m in FY13 to £3.9m this time out, with revenue across the rest of the globe dropping from £17.4m to £8m. But these declines were offset by a 15 per cent annual jump in UK sales, which stood at £192m in FY14.

Staff numbers also saw a big spike, rising from 500 to 595 over the course of the year as the VAR sought to build out its burgeoning managed services operation. The firm saw its ranks of services delivery employees grow from 249 to 326, while sales and distribution heads increase from 188 to 205.
The directors' report for the year singles out Logicalis' investments in datacentre infrastructure, cloud, and services as the three key pillars of its success last year.

"During the year we have continued to invest in our strategic service platforms to provide market-leading support to our customers in making the transition from buying IT as a solution to buying IT as a service in the future," adds the report. "Our focus on those areas in the past year has assisted us to continue to grow through FY14, and ensure that we have a secure and scalable platform to continue to serve our customers in the future."

The report goes to claim that the integrator has built on its success in the ongoing financial year, with the directors "further encouraged by the performance of the business... in the first quarter of FY15".