CDW reports record Q2 as UK shines

Unit containing UK arm sees sales increase 34 per cent

CDW has reported its best ever Q2, with the business unit holding its UK arm seeing revenue almost triple.

For the three months ending 30 June, CDW saw global sales increase 7.6 per cent to $4.9bn (£3.8bn), while net income rose 22.8 per cent to $173m.

The UK arm, which is grouped together with the Canada operation, saw revenue rocket 34 per cent to $487m.

On an earnings call transcribed by Seeking Alpha, CDW chief revenue officer Christine Leahy said: "Once again, UK results came in above expectations. UK had excellent results across both transactions and solutions.

"Despite looming Brexit decisions, the team continues to execute well in market.

"They are also doing a great job leveraging our international capabilities to grow outside the UK, both with UK-based customers and US-based customers. US referral to the UK increased over 30 per cent in the quarter compared with the prior year."

CDW's UK business came about as a result of the US giant's acquisition of Kelway and, along with the Canada business, contributed $1.5bn to sales in FY17.

CDW CEO Thomas Richards said the UK's growth was largely down to an increase in solutions sales.

"For the UK and Canada, we saw excellent increases in solutions together up to the high teens," he said.

"Clearly, the breadth of our products and solutions portfolio enables us to evolve with our customers and deliver profitable growth."

Richards also said that the Kelway integration could be used as a template for further acquisitions.

He explained that the success CDW has seen via such a large acquisition is proof that the firm can continue to bolt on other businesses