Losses narrow at Misco UK in 2016
Systemax management chirpy about EMEA performance
Systemax management is enthusiastic about its performance in Q4 and 2016, despite the business making a loss and the fact that sales were down annually.
For the full year ending 31 December, Systemax posted a GAAP net loss from continuing operations of $7.9m (£6.4m), which narrowed from $48.3m a year ago. Consolidated sales for the full year were down 9.4 per cent to $1.7bn. The company compared average daily sales for "enhanced comparability" due to its fourth quarter in 2015 being a week longer than in 2016, which skewed the traditional comparison.
In Q4, GAAP consolidated sales fell 10.9 per cent to $414.7m, with its overall net loss from continuing operations reaching $700,000, compared with $11.6m in the prior period.
Systemax CEO Larry Reinhold said the company streamlined its corporate structure last year, which has helped improve profitability.
He was chipper about its EMEA performance too.
"Our European Technology Products Group (ETPG) showed improved bottom-line performance for the full year and quarter as we benefited from another record quarter in France, solid gains in the Netherlands, the narrowing of our loss in the UK and the exit of our German operations," he said.
In Q4, the ETPG recorded sales of $238.1m, down 16.5 per cent year on year, on an average daily sales basis, while for the full year its revenue was $960m, down 8.7 per cent on the same basis.
Reinhold last month praised what he said was the good work being carried out by its Misco UK team, and gave the British business another positive shout out in the results announcement.
"France, led by its strong management team, delivered another quarter of double-digit organic growth as it benefited from gains across its customer base, success in a number of tender bids and excellent vendor partnerships," he said. "In the Netherlands we completed the integration of the businesses into a single organisation and our solutions offerings continue to gain traction. Finally, in the UK we narrowed our operating losses and took additional steps to enhance our management effectiveness and broaden our solutions and services offering."