Logicalis revenue drops

Integrator still profitable despite seeing revenue fall 5.6 per cent

Logicalis has reported a revenue decline of 5.6 per cent amid restructuring in the UK.

The firm's parent company, Datatec, released company-wide results for the period 1 March to 30 June, reporting an annual revenue drop of 11 per cent to £1.97bn. It attributed the fall to strong growth in the same period last year, as well as a stronger US dollar. Gross margins, however, were up annually from 12.8 per cent to 13.8 per cent.

Jens Montanana, CEO at Datatec, said: "The improvement in our gross margins is encouraging in a period where revenues have been comparatively softer, as the much stronger US dollar continued to impact emerging markets."

Datatec did not release exact figures for Logicalis, but said that despite the revenue decline the reseller still recorded a gross profit improvement of 1.1 per cent, with the restructuring in the UK expected to be completed by the end of the financial year.

Bob Swallow took the reins at Logicalis earlier this year after being promoted from UK sales director to UK managing director.

The period also saw Logicalis acquire Spanish services provider Lantares.

Elsewhere in the group, distributor Westcon saw revenues drop 13 per cent, which Datatec again attributed to strong revenue growth in the same period last year.

North American revenue for Westcon declined, as a result of a decrease in Cisco sales in the Comstor division, as did revenue in the Middle East and Africa. Germany was the best-performing EMEA market.

Montanana added: "We are committed and focused on completing the restructuring initiatives within Westcon which will enhance our operational performance, including the new ERP [enterprise resource planning] system rollout and business process outsourcing transformation."