Exertis looks to growth as it closes DVD arm

Smart and wearable tech primed for growth as distributor confirms 25 to 30 roles will be affected by withdrawal from DVD distribution

Exertis is looking to emerging technologies such as augmented reality and wearables for growth as it confirmed it is shutting its DVD distribution arm.

Talking to CRN, Exertis UK and Ireland managing director Gerry O'Keeffe (pictured) scotched rumours the distributor is cutting roles across its business following a slowdown in UK sales - as reported by parent DCC - but confirmed it is withdrawing from DVD distribution.

Some 25 to 30 roles in Harlow and Basingstoke will be affected, he said.

"Beyond that, there has been a fairly mild restructuring in a couple of areas where we've had an opportunity to bring things together," he said. "The other area where we have pulled back a little is airtime distribution."

O'Keeffe claimed Exertis has the largest workforce of any UK distributor, with a headcount of 1,050, adding that the distributor is primed for growth in a range of emerging technology categories.

In its interim results, Exertis parent DCC Group said the performance of its DCC Technology arm - which trades as Exertis - had been "significantly impacted by a weak performance in its UK business", with organic revenue down eight per cent annually.

But O'Keeffe said the decision to withdraw from DVD distribution was completely unrelated. It was also taken months ago but a presence in the market was retained until after the busy Christmas period, he added.

"It was fairly marginal to our business in terms of income streams and there's not much point in staying in areas of distribution that are dying," O'Keeffe said. "The future is around the stuff I was looking at last week at CES - augmented reality, smart technology and wearables. Those are the areas we are investing in and adding people into."

O'Keeffe added: "People are always joining and leaving the business, but it is nothing out of the ordinary."

It's a busy year ahead for Exertis, with the distributor's move to new headquarters set to finally occur in the coming weeks and an SAP system rollout and £40m warehouse move slated to commence later in 2016.

"We are ready to move into the new office and it's just dependent on BT now," O'Keeffe said of Exertis' new Basingstoke HQ.

"The new National Distribution Centre [in Lancashire] will be commissioned in the second half of this year but it will be 2017 before it is fully operational. Elements of the SAP project will also be completed this year and other elements will continue into 2017."

All three projects are about "improving connectivity" with reseller customers and vendors, O'Keeffe said. "We see plenty of upside associated with them," he added.