PCM UK tops £6m revenue in Q4

US reseller's UK arm continues to gain traction after launching last year

PCM's UK arm saw revenue hit $9.1m (£6.5m) in Q4, the reseller has revealed in its quarterly earnings.

For the three months ending 31 December the wider PCM business saw its revenue decline four per cent to $563.4m.

The UK division, however, continued to grow, with its revenue more than trebling from the $2.7m it hit in the previous quarter.

The business launched in April last year, and has since taken on a host of ex-Misco staff and made two acquisitions.

On an earnings call, transcribed by Seeking Alpha, PCM CEO Frank Khulusi said the UK business has capitalised on market conditions in the UK.

"With respect to our new UK segment, it continues to grow rapidly and capture the attention of vendors, customers and competitors alike in this very important market," he said.

"We are very pleased to share that January was our first month with the UK segment operating results near break-even. This important milestone for a start-up was reached eight months from our launch date.

"We are confident in our trajectory for our UK business and we currently expect at least a $1m improvement from the fourth quarter in our UK bottom line in Q1 and we continue to expect full-year profit for 2018."

In total the UK segment of PCM has generated $12.2m in sales since its launch in PCM's Q2.

Despite the strong performance in the new business, Khulusi was not happy with PCM's performance across the pond.

He highlighted a disappointing performance in the US public sector as a main contributor to the overall revenue decline.

"While some segments of our business performed well in the fourth quarter, overall I'm not pleased with our results," he said.

"We experienced significantly lower than anticipated contribution during the quarter from our public sector business that drove the year-over-year decline in consolidated results."

Despite Khulusi's disappointment PCM's share price has risen over 50 per cent this week.