Ingram enjoys UK sales and profit boost in 2013

Distribution giant claims improved business mix and management overhaul is paying dividends

Ingram Micro's UK operation enjoyed a successful 2013, with revenues and margins on the rise.

Accounts recently filed with Companies House show the distributor's UK revenues spiked about 2.2 per cent in 2013 to £968.5m. Pre-tax profit more than doubled to £5.9m. This equates to margins of a rather skinny 0.6 per cent, but is double the 0.3 per cent logged in the prior year. Total shareholders' funds increased by more than £4.5m over the course of the year to almost £28.2m.

The directors' report for the year claims that Ingram Micro UK overcame a "sluggish start to the year" to grow its top and bottom line. It chalked up the increased margins to a change in its business mix.

"[Our performance] was supported by growths across all customer sectors and the majority of our leading vendors," says the report. "Enhanced profitability was achieved through a targeted reduction in low-profitability lines as well as strong growths in the higher-margin vendor and customer mix."

The distributor claims its European rejig – in which it has sought to strip out management layers and move various back-office functions to a new hub in Sofia – has also had a positive impact on profitability.

"The UK has benefited from a group-wide initiative to de-layer management, resulting in reduced costs and a more responsive management team," says the report. "Many administrative functions are being moved to the lower cost base of Sofia in Bulgaria.

"These changes, coupled with an investment in our front-office resource, will enhance our competitive edge, aiding organic growth of our vendor portfolio. The group is always open to growth by corporate acquisition, if a good opportunity presents itself."

Despite the new Bulgarian facility, Ingram's UK staff numbers grew from 360 to 380 over the course of 2013. The firm's total annual wage bill rose from £13.7m to £14.5m.