Exertis' parent company sees UK business decline in latest results

DCC Technology blames ongoing supply, labour and logistical problems for revenue and operating profit dip

The parent company of technology distributor Exertis saw its UK revenue and operating profit decline during the first half of the year.

DCC Technology posted an overall sales increase of 0.8 per cent year-on-year to reach £1.985bn, while operating profit rose 6.5 per cent to £27.2m for the six months ended 30 September 2021.

But both figures declined for its UK business, which it put down to ongoing supply, labour and logistical problems.

"DCC Technology delivered good profit growth in the first half of the year, despite the well-documented global supply chain disruption being experienced by the technology industry and its impact on product availability," the company said in its results.

"Demand for higher-volume, lower margin consumer and working-from-home products generally remained relatively robust, although activity was somewhat constrained by supply disruption, particularly in the UK.

"In the UK, revenue and operating profit declined. The UK business is experiencing the most product supply disruption, with labour availability and logistics challenges also being most acute in this market.

"The business was also impacted by the planned implementation of a new warehouse management system in the second quarter."

In May this year, DCC Technology MD Tim Griffin told CRN that supply constraints represent a bigger threat to the channel's growth than any dip in demand for remote working kit.

DCC Technology's North American business performed "very strongly" in the first half of the year and delivered "very good organic revenue and profit growth across pro audio, pro AV and consumer products," the company added.

And there were also gains in continental Europe driven by a strong demand for B2B products.