45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
Who are the UK's top IT distributors, and how do they view the market going into the final four months of 2022?
This three-part feature counts down the 45 largest UK broadliners and VADs on CRN's radar by revenue. See parts one and two here and here. This final part counts down the top 15, who boast revenues ranging from £110m to £3bn....
15. Nimans
Revenue: £110.9m (+16%)
Staff: 220
Specialism: Comms
Top vendors: Yealink, Jabra, BT, Unify, NEC
HQ: Salford
Reflecting the fact that Midwich's £27.5m acquisition of Nimans occurred after the end of Midwich's last full financial year, we have opted to break out this comms distributor's performance separately in this feature.
Salford-based comms specialist Nimans saw revenue rebound 16 per cent to £110.9m in calendar 2020, according to its most recently filed annual accounts. Midwich CEO Stephen Fenby said that Nimans would bring "skills in new product and technology areas" at the time the deal was announced in February.
Q&A with group CMO Steve McIntyre
What's been your biggest business highlight of 2022 so far?
Becoming part of the Midwich group and working with the group companies.
Do you expect to grow in 2022?
Like a waistline in lockdown…
What's the one market trend everyone else is missing?
End-users moving up the equipment value chain.
Have you made any significant vendor signings in the last 12 months?
Many new security vendors plus access to Midwich group vendors as well
Which emerging vendor/technology are you tipping for take-off in 2022?
Microsoft Teams Rooms (MTRs) systems
2022 will have been a successful year for your company if… Microsoft's forecast in MTRs grows at the rate they predict.
Some product ranges are still in constraint but it is getting better every week
How is the chip shortage impacting you, and when will it end?
Some product ranges are still in constraint but it is getting better every week.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Companies picking up specialists in fields they are not strong in or not in at all.
What, if any, role does distribution have to play when it comes to sustainability?
All parts of the supply chain have a part to play, Nimans is very proud of our zero waste to landfill and other sustainability programmes.
What's been your biggest business mistake?
Oddly, producing an emulsion paint range with different colours in Matt and Silk… it was a disaster!
Which Dorset-based distributor registered the highest growth out of entire top 20 in its latest year? See next page for answer...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
14. Spire Technology
Revenue: £116.2m (+50%)
Staff: 66
Vendors include: Asus, Corsair, TP-Link, ASRock, Palit, ADATA
Specialism: Components, gaming hardware
HQ: Verwood, Dorset
Amid a lockdown-fuelled boom in trade among its e-tail clients, this Dorset-based distributor saw revenues skyrocket by 50 per cent to £116.2m its year to 30 April 2021 (the highest relative growth rate of anyone of the top 20).
Its net profits hiked from £1.2m to £2.7m.
A recent warehouse extension that has boosted capacity by 30 per cent will help cater for several new "world-leading" vendor signings made during the year, Spire claimed.
Founded in 1990, the retailer-focused outfit claims to offer 2,500 products, from laptops and tablets to components and peripherals.
See next page to discover which £125m-revenue distributor is bouncing back after a Covid blip...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
13. Mayflex
Revenue: £125.7m (+28%)
Staff: 220
Specialism: Cabling, networking and IP security
Top vendors: Excel (cabling infrastructure), Avigilon, Axis, Hik Vision (IP video CCTV)
HQ: Birmingham
Billing itself as a "leading distributor of converged IP solutions including infrastructure, networking and IP security solutions", Birmingham-based Mayflex can trace its roots back to 1917.
Although Covid caused revenues to dip from £118m to £98.3m in its last filed accounts on Companies House covering calendar 2020, the company told us that its top line rebounded to £125.7m in 2021. Mayflex offers its own line of data cabling and AV components under the Excel and Aura brands alongside third-party brands including Axis.
Q&A with MD Andrew Percival
What's been your biggest business highlight of 2022 so far?
Management of supply chain challenges to keep customer experience to an acceptable level at times unprecedented instability.
Do you expect to grow in 2022?
Yes, we will grow revenue and volume across both infrastructure and IP video product categories.
AI and analytics in general will deliver more and more value to the IP video market
What's the one market trend everyone else is missing?
Not sure there is one, but AI and analytics in general will deliver more and more value to the IP video market.
Have you made any significant vendor signings in the last 12 months?
Yes - Pelco video and also expanded our offering under the Excel brand to the fibre to the home (FTTH) providers.
Which emerging vendor/technology are you tipping for take-off in 2022?
Cloud video storage.
How is the chip shortage impacting you, and when will it end?
Extended lead times for IP video products, but we see this easing through Q3 and 4
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
We expect to see more activity but possibly in the acquisition of certain skill sets for example AI/data monetisation or in emerging large-scale markets such as cloud video, or FTTh
What, if any, role does distribution have to play when it comes to sustainability?
A huge one. The distribution channel has significant ability to reduce its impact on the environment through responsible transport, packaging, and circular economy strategies as part of business operating models, but can also educate resellers, installers and end users to increase adoption of solutions that also impact the environment positively, for example power over Ethernet and cloud solutions.
The CEO of the next distributor in our countdown has described further consolidation in the sector as "inevitable" and is expecting M&A moves from one overseas player in particular. See next page for more...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
12. QBS Technology Group
Revenue: £142m (+30%)
Staff: 125
Specialism: SaaS, software
Vendors include: Acronis, F-Secure, Ninja RMM, Jetbrains, DocuSign, Webroot
HQ: London
Founded in 2017 by Dave Stevinson with a vision of becoming "Europe's leading software delivery platform", QBS Technology Group's total revenues rocketed by 30 per cent to hit £142m in its year to 31 March 2022 (according to numbers it shared with us).
Its most recent annual accounts filed on Companies House show revenue of £109m, with the UK generating £63.1m of the total (it also has offices in Germany, Sweden and France). The London-based outfit claims to have over 10,000 software publishers on its platform.
Q&A with QBS Technology Group CEO Dave Stevinson
What's been your biggest business highlight of 2022 so far?
Our 35th Anniversary Party.
Do you expect to grow in 2022?
Yes, significantly - growth is hard coded into our business model of monthly recurring revenue with a three figure NRR.
Have you made any significant vendor signings in the last 12 months?
We have onboarded almost 400 software publishers on to the platform.
Distributor share prices have cooled over the last 12 months. Is that a concern?
No. Every asset class is down apart from utilities. Distributors have always and will always be undervalued in the public markets.
How is the chip shortage impacting you, and when will it end?
We deliver bytes not atoms, so we are not directly affected. Chip supply will continue to fluctuate from feast to famine for the next few decades at least.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Further consolidation is inevitable. Very few distributors have sufficient global scale yet. I'm still waiting for ALSO to buy a significant distributor in the UK.
Further consolidation is inevitable. Very few distributors have sufficient global scale yet. I'm still waiting for ALSO to buy a significant distributor in the UK.
What, if any, role does distribution have to play when it comes to sustainability?
Every company must aim to create sustainable long-term stakeholder value and become climate positive, particularly rich technology companies. It is our moral duty to ensure that we do not take from future generations and leave them with the negative consequences of our actions.
What's been your biggest business mistake?
A bad acquisition without question. It is easy to buy trouble if you are not careful.
Which security VAD with a £200m-revenue UK business has just been snapped up by a rival. See next page for more...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
11. Nuvias
UK revenue: £209m (+6%)
UK staff: 100
Specialism: Cybersecurity, storage, UC
Top vendors: Juniper Networks, Check Point, NetScout, WatchGuard, Riverbed
HQ: Woking, Surrey
The UK business of this Rigby Group-owned VAD turned over £209m in its year to 31 March 2022, according to numbers it shared with us, with its total top line swelling by 36 per cent to £560m.
Nuvias is poised to join forces with Switzerland-based rival Infinigate (ranked 31st in this report) after the latter agreed to acquire it in July (although Nuvias' UC business is not included in the deal). Until the union - which will create a €1.4bn-revenue juggernaut - gains regulatory approval, Nuvias will operate independently, hence our decision to profile the duo separately.
Q&A with Nuvias UK&I managing director Lee Driscoll
What's been your biggest business highlight of 2022 so far?
The biggest highlight this year must be the acquisition of Nuvias Group by the Infinigate Group. This exciting move sees the coming together of two successful specialist distributors of a similar size and turnover, with like-minded business strategies and excellence in partner service delivery.
When completed this acquisition will allow us in the UK and across Europe to extend our reach into new and existing partners with an extended portfolio of disruptive vendors and technologies, whilst enhancing our ability to deliver better specialist services to our partners and vendors.
Do you expect to grow in 2022?
Yes definitely. We have enjoyed significant success over last 36 months, growing above market average year on year. With the power of Nuvias and Infinigate coming together we expect this trend to accelerate into 2023. The merging of the two highly successful businesses establishes a leader in European distribution with an anticipated €1.4bn in revenue by 2023.
The merging of the two highly successful businesses establishes a leader in European distribution with an anticipated €1.4bn in revenue by 2023
Have you made any significant vendor signings in the last 12 months?
Yes, Nuvias continues to evolve its vendor portfolio as we seek to identify new, disruptive, and profitable opportunities for partners. This is particularly true for the cyber security sector, where demand is high and technology innovation is moving fast. Over the past year we added innovators such as Absolute, Armis and Ivanti - who will help us address the top priority that cyber security has become for businesses of all sizes.
Which emerging vendor/technology are you tipping for take-off in 2022?
With the unfurling of tangled supply chains, the continuing effects of a global pandemic as well as European geopolitical tensions, the interplay between defensive cybersecurity principles and supplier integration continues to rapidly change.
Businesses need to protect themselves against cyberattacks occurring up and down their supply chains while still driving digital transformation projects. This must occur to bring down the costs of doing business, minimise the risk of price increases to the end customer. That's why Nuvias believes that digital supply chain risk assessment and attack mitigation is going to be on an exponential growth path in 2022 and beyond.
How is the chip shortage impacting you, and when will it end?
Shortage is clearly disrupting the channel globally. Nuvias is working with key vendor partners to ensure the impact on our mutual customers is mitigated, for example, by ensuring a robustly stocked channel. Ironically, with one of our leading vendors we currently have the largest stock holding that we have had in many years.
With regards to this easing and the resolution of the chip shortage, we believe that we will continue to see some disruption in the supply chain for at least 12 months.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Clearly, our pending merger with Infinigate is another example of distribution consolidation in the market. As we see increasing competition in the channel, and skilled and experienced resources becoming even more scarce, we would expect this M&A trend to continue in to 2023.
What, if any, role does distribution have to play when it comes to sustainability?
Distribution has a clear role to play and our customers and partners demand it. As a distributor it is vital that we innovate and apply policies and actions to mitigate our impact on the environment. At Nuvias we have set up small cottage gardens, introduced a cycle to work scheme, installed electric cars charge points, removed all single use plastics from our office environments, installed LED lighting throughout our buildings to name a few steps and it is vital that we continue to be active and improve in this area. Regarding our broader relationships, we work closely with our suppliers, be they, vendor partners, and couriers to reduce our carbon footprint and helping partners validate their own environmental and corporate responsibility policies. Our Nuvias Group Environmental Policy, expresses our commitment to do the right thing, decarbonising our company, by implementing policies that support a positive impact on both our workforce and planet.
Which distributor CEO is cautious about growth prospects for the next six months despite registering a 37% rise in 2021 sales? See next page for the answer...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
10. VIP
Revenue: £214.1m (+37%)
Staff: 144
Specialism: Components, peripherals
Key vendors: AMD, Gigabyte, ASUS, RAZER, MSI
HQ: Warrington
This Warrington-based components distributor and PC builder enjoyed a bumper year to 31 March 2021 as its revenues smashed the £200m barrier on the back of 37 per cent growth and net profits more than doubled to £4.6m.
VIP chairman Jatti Sahni told CRN that the AMD and Gigabyte ally grew another four per cent in its fiscal 2022 but is predicting a more flat performance in H1 of its 2023 due to "market challenges" (see below).
Quickfire Q&A with VIP Group chairman Jatti Sahni
What's been your biggest business highlight of 2022 so far?
We have seen our employees on an incredible journey of development reflected in record numbers of internal promotions and progression throughout the organisation. This has been as a result of continued efforts and focus in schemes such as our graduate programmes, which have more recently been expanded throughout the business, as well as bespoke training programmes created and delivered internally to our teams. Our commitment to our people is what makes VIP work.
Do you expect to grow in 2022?
VIP have just closed off our year end accounts in June 2022 and have seen further revenue growth of approximately four per cent year on year. With the current market challenges, we do not expect to see further growth over the next six months.
Have you made any significant vendor signings in the last 12 months?
Corsair: a Tier 1 brand whose products are in great demand with our customer base. The addition of the brand bolstered our case, cooling and PSU categories to a best in class offering, and enhanced our PC gaming peripheral portfolio, so that VIP now boast two of the leading brands (with Razer) in this space.
With the current market challenges, we do not expect to see further growth over the next six months
Which emerging vendor/technology are you tipping for take-off in 2022?
AMD RYZEN CPU launch is bound to be one of impact.
2022 will have been a successful year for your company if… we retain the growth we have seen in the last two years.
How is the chip shortage impacting you, and when will it end?
We are a primary component disti with outstanding vendor relationships, which mitigated the impact of the chip shortage. However, we have still seen shortages in key areas particularly, finished goods and devices. We are remaining positive that this will be alleviated in 2023.
What, if any, role does distribution have to play when it comes to sustainability?
In the next few months, we will have solar panels installed which will reduce our energy reliance by 48 per cent
As a channel we have a long way to go. Our participation is essential; however, this does not come without its challenges. When you are a volume driven, low margin industry, the changes required are not outside of our reach, but they are certainly not swift. In the next few months, we will have solar panels installed which will reduce our energy reliance by 48 per cent, EV charging available, as well as a cycle to work scheme. We will also endeavour to implement further improvements over the next 12 months.
Which £850m-revenue, Norfolk-based distributor's business is bouncing back after lockdown dented demand for its wares? See next page...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
9. Midwich
UK revenues: £286.1m (+27%)
Total staff: 1,300
Specialism: Audio visual
HQ: Diss, Norfolk
The pro-AV market "picked up strongly" in 2021 "but remained below pre-pandemic levels", Midwich chairman Andrew Herbert observed in March at the time the audio-visual distributor unveiled a 20 per cent rebound in 2021 global revenues.
Midwich's home UK market contributed £286.1m to the £856m global total, a 27 per cent hike.
But these numbers do little justice to Midwich's enlarged scale in the UK following its acquisition this February of comms rival Nimans (ranked 15th in this report).
In a H1 trading update last month, Midwich revealed that group revenue for the six months to 30 June 2022 was up a whopping 45 per cent year on year to £560m (27 per cent of which was organic), with its UK & Ireland revenue bouncing 85 per cent.
The Norfolk-based giant claims to serve 20,000 pro-AV integrators and IT resellers across the UK & Ireland, EMEA, AsiaPac and North America, offering the full gamut of AV from large format displays to projectors, digital signage and professional audio.
See next page to find out which Anglo-Irish distributor registered a two per cent revenue dip in its latest year...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
8. CMS Distribution
UK revenue: £316.5m (-2%)
Specialism: Datacentre, cybersecurity, storage, consumer electronics, gaming
Vendors include: Acronis, Barracuda Networks, Gigabyte, Jabra, Seagate, Western Digital
UK staff: 275 (global: 560)
UK HQ: London
The UK arm of this Dublin-headquartered enterprise IT and consumer electronics distributor enjoyed "another successful year" in calendar 2020, according to its latest annual accounts filed on Companies House. Although revenues dipped two per cent to £316.5m, net profits rose from £2.2m to £2.4m. Halfway through the year, CMS acquired UK consumer electronics distribution PDT Ltd.
Founded in 1988 by Frank Salmon, CMS' group sales hit £572m in 2021, a year in which it continued to expand internationally with the acquisitions of German VAD Sysob and US based VLC.
Q&A with CMS Distribution chief business officer Huw Jones
What's been your biggest business highlight of 2022 so far?
WFH has its benefits but reuniting teams, collaborating, learning about technology, and enjoying each other's successes F2F is far more rewarding.
Do you expect to grow in 2022?
CMS expects to have a solid year with growth in networking, security, digital workplace and emerging technology.
Have you made any significant vendor signings in the last 12 months?
We have signed over ten new vendors in datacentre, cyber security, gaming and other emerging consumer technology. It's a very exciting work environment.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Distribution plays an essential role in the channel providing expertise to customers, scale and reach to vendors and essential commercial and logistical functions to all. We connect the channel ecosystem together successfully with great people and we will continue to do so for years to come. We really welcome the thrill of new opportunities. CMS has blossomed and expanded in the past few years in ways we couldn't have predicted. We are excited to see what lies ahead.
How is the chip shortage impacting you, and when will it end?
Thankfully the shortages are coming to an end
The chip shortage has caused supply issues in different areas of our business and has impacted growth, however CMS benefits from having a diverse portfolio of vendors to offer its customers. Thankfully the shortages are coming to an end.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
More of them! The distribution market continues to polarise towards scale out players focusing on operational efficiency with tier 1 brands, and the specialist focused on value creation and challenger, niche and visionary brands. CMS strives to be a group of specialists operating with agility at scale. Over the years we have acquired businesses that enable that strategy.
What, if any, role does distribution have to play when it comes to sustainability?
An essential one, we all have a role to play in this crucial topic. CMS has recruited an ESG leader, and we are in the process of building our strategy to tackle this issue with focus and authenticity. Sustainability touches on every department within CMS, we are currently calculating our scope 1-3 carbon emissions across all our global offices. Measuring our impact at this scale will enable us to make a significant step towards our decarbonization goals.
Which £3bn-revenue VAD recently made its stock exchange debut? See next page for details...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
7. Exclusive Networks
UK revenue: £385m (+11%)
UK staff: 225
Specialism: Cybersecurity
Top vendors: Fortinet, Palo Alto Networks, Thales, Proofpoint, Tanium
UK HQ: Alton, Hampshire
It's been an action-packed 12 months for the world's largest cybersecurity VAD, whose UK operations saw revenues rise 11 per cent to £385m in calendar 2021 (according to numbers it shared with us).
Having IPOd on Euronext Paris last September (pictured above), the France-based company inked landmark distribution deals with F5 Networks and Juniper in November. In its first set of full-year results as a public company, Exclusive announced calendar 2021 global net sales of €3.3bn, a 29.5 per cent year on year hike.
Having acquired its way into the UK via its purchases of Arc and VADition, Exclusive bolstered its business here in July 2021 by snapping up 30th-ranked Ignition.
Q&A with Exclusive Networks SVP EMEA Gerard Allison
What's been your biggest business highlight of 2022 so far?
Being back in front of our partners and vendors. Nothing beats being able to speak face to face once again. Being out again at meetings, visiting offices is great. But being back to our networking events has been a true highlight. Seeing the channel back together again at our Cyber Fest event in June was fantastic.
What's the one market trend everyone else is missing?
Visibility and understanding of the software world we find ourselves in. through APIs through to SAAS, it's a huge market that is only going to keep increasing as is the security risks and challenges of understanding "did I write that" "who should have access to that". As companies utilise more and more SaaS applications, security solutions and native applications we are only going to see the number of APIs and the attack surface increase.
Have you made any significant vendor signings in the last 12 months?
It's been a big year for Exclusive Networks with the signing of two significant vendors, F5 and Juniper at the end of 2021.
Which emerging vendor/technology are you tipping for take-off in 2022?
SASE is at the forefront of a lot of security conversations, its reinventing the security landscape and Covid has accelerated that.
SASE is at the forefront of a lot of security conversations, its reinventing the security landscape and Covid has accelerated that
What, if any, role does distribution have to play when it comes to sustainability?
We take our role in the supply chain seriously. It's what our partners and their customers expect to see. It's an important value for our people and reflects who we are as a business.
Which distributor claims the fact it now sells more software than hardware has insulated it from the chip shortage? See next page for more...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
6. Westcon Comstor
UK revenue: £444.9m (+5%)
UK staff: 530
Specialism: Networking, UC and cybersecurity
Top vendors: Cisco, Avaya, Palo Alto Networks, Extreme Networks, F5, Check Point, CrowdStrike, Zscaler, Microsoft, Mitel
HQ: Bracknell
Comprising Cisco arm Comstor and UC and cybersecurity arm Westcon, this global distributor saw total revenues rocket 12 per cent to $2.89bn in its year to 28 February 2022 thanks to "strong demand" for its wares.
Its UK business contributed $539m to the total (the headline number in this profile is a conversion), according to numbers Westcon Comstor shared with us. While Comstor UK saw revenues inch up from $272m to $277m, Westcon UK's tally swelled from $239m to $262m.
South African parent Datatec, which also houses Logicalis, posted total revenues of $4.6bn in its fiscal 2022.
Q&A with Westcon Comstor UK&I managing director John Nolan
What's been your biggest business highlight of 2022 so far?
The number of awards we've picked up recently has been outstanding. From a partner perspective, helping our partners deliver some of the largest hardware-to-private cloud migration projects ever seen in Europe including one worth over $23m. From a vendor perspective, seeing the amazing growth of our NGS business.
Do you expect to grow in 2022?
Yes, we're expecting double-digit growth.
What's the one market trend everyone else is missing?
The ongoing skills shortage. We've been laser focused on investing in the skills gap and developing the next generation of IT talent, which is the reason behind our continuous investment in education and our apprenticeship schemes. We've been doing this for more than five years, taking home best apprenticeship scheme award at the recent CRN Sales & Marketing Awards for the third time. This is a testament to the strength of the programme and our commitment to nurturing industry talent.
Have you made any significant vendor signings in the last 12 months?
Our most significant signings include Zscaler in 2021 plus CrowdStrike and 8x8 shortly before. All are making huge in-roads into the UK channel today.
Which emerging vendor/technology are you tipping for take-off in 2022?
SASE and identity-based security. Simplifying and securing hybrid cloud environments and architectures. Commercial services derived from big data analytics.
Last year, our software business overtook our hardware business for the first time, and this is expected to continue. More than 50 per cent of our revenues are recurring today
Distributor share prices have cooled over the last 12 months. Is that a concern?
This is not a concern for me in what is clearly a growing market. While you always must keep an eye on what's happening, we work in a robust industry which has thrived in uncertain times. Technology supports growth, increased productivity, security and more cost-efficient ways of working, so we're feeling positive about the future, at least in the immediate term.
How is the chip shortage impacting you, and when will it end?
The chip shortage is impacting and changing customer and partner behaviours, which forces value-added distributors like us to find innovative solutions. In response, Westcon has worked closely with our vendors to protect stock availability, and they have in turn done an excellent job in helping us navigate what have been unprecedented times in the channel.
Last year, our software business overtook our hardware business for the first time, and this is expected to continue. More than 50 per cent of our revenues are recurring today.
While I would expect to see improvements in the coming months, I don't expect vendors to bounce back to full manufacturing capacity until mid-2023, at the earliest.
What, if any, role does distribution have to play when it comes to sustainability?
We have a significant role to play, particularly as over 60 per cent of enterprise IT buyers now include sustainability objectives within their RFPs. We expect to see a greater investment in the approach to a circular economy, as the need for a reduction in carbon footprint becomes more urgent. This is no longer a ‘nice-to-have', but a must for every organisation - and we will play a significant part.
There are also opportunities to collaborate with supply chain partners to come up with innovative sustainable solutions, and to advocate for low carbon products and practices. Given the challenging nature tackling sustainability, these cannot and should not be managed in isolation.
Which global distributor saw UK gross billings come in a fraction below the £1bn mark in its latest year? See next page for more...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
5. Arrow Enterprise Computing Solutions
UK gross billings: £991.3m (-5%)
Specialism: Enterprise IT infrastructure and cybersecurity
Vendors include: Broadcom, Citrix, Check Piont, Forcepoint, IBM, Palo Alto, Riverbed, Sophos, Trend, VMWare
HQ: Harrogate
An $8bn-revenue business globally, Arrow Enterprise Computing's UK arm reported a five per cent dip in gross billings to £991.3m in its most recently filed accounts on Companies House (covering calendar 2020).
The cybersecurity and IT infrastructure specialist, which bolstered its UK and European presence with the 2013 acquisition of Computerlinks, is part of NYSE-listed Arrow Electronics, which doubles up as a distributor of electrical components.
Arrow ECS' global business grew two per cent year on year to $2bn in Q2 2022, with Arrow CEO Sean Kerins admitting that "supply constraints represented a headwind to hardware sales". Key UK vendors include VMware, Check Point, IBM and Trend.
Q&A with Arrow ECS VP sales UK&I Nick Bannister
Which emerging vendor/technology are you tipping for take-off in 2022?
As the threat landscape continues to evolve in scale and intensity, there are a growing number of MSPs who have added security services to their proposition. We are seeing security partners adopting ArrowSphere and public cloud. These channel partners are layering their managed security service provider models to fit dual and multi-cloud environments.
Cloud native and containerisation are also growing areas. SMB channel partners have an increasing hybrid mentality. The Arrow Cloud Enablement and Cloud Innovation Factory programmes that Arrow has created will enable them to work towards it as the market develops and becomes the de facto way for building services with Kubernetes for containerisation.
See next page to find out which global distributor is on a push to build out an in-house AI team...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
4. Ingram Micro
UK revenue: £1.404bn (-0.1%)
UK staff: 1,249
Specialism: Broadliner
Key vendors: Apple, Cisco, Dell-EMC, HP, Lenovo, Microsoft
UK HQ: Milton Keynes, Buckinghamshire
The first of four £1bn-revenue giants in this distribution countdown, Ingram's UK&I operations saw revenues inch up three per cent to £1.559bn in calendar 2020.
That figure includes not only Ingram Micro UK Ltd but also three other UK subsidiaries (including £40m-revenue channel services arm Comms-care). The headline number in this profile is based on the UK portion of that (so as to be directly comparable with the three companies above it in the rankings).
At the time Platinum Equity acquired it from Chinese conglomerate HNA Group last July, Ingram boasted revenues of $49bn and 35,000 staff globally. In January 2022, the US-headquartered outfit unveiled a new CEO in the form of Paul Bay.
Q&A with Ingram Micro SVP UK & Ireland Matt Sanderson
What's been your biggest business highlight of 2022 so far?
We've invested in the development and implementation of an in-house IoT & AI team that pioneers new distribution service models to accelerate channel and end-user adoption. They focus on scaling IoT, AI and machine learning, as well as robotic process automation (RPA). To date, the team has already realised a number of impressive wins.
Which emerging vendor/technology are you tipping for take-off in 2022?
Whilst not necessarily emerging, AI and XR technologies are evolving at a pace and will rapidly become mainstream and embedded in a multitude of technology solutions.
We've invested in the development and implementation of an in-house IoT & AI team that pioneers new distribution service models to accelerate channel and end-user adoption
2022 will have been a successful year for your company if…we continue to be recognised as a Great Place to work and we continue to improve our performance based on feedback from our customer and vendor surveys.
What, if any, role does distribution have to play when it comes to sustainability?
Leading from the front by managing the lifecycle of technology products from cradle to grave with all-encompassing solutions that address the return, refurbishment, repair and remarketing of technology products to facilitate and empower a circular economy as well as helping bridge the digital divide.
Which giant distributor laid the blame of a 22 per cent UK annual sales drop on supply constraints, reduced consumer demand, and a warehouse software upgrade? See next page for the answer...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
3. Exertis
UK revenue: £1.983bn (-22%)
Staff: 6,000 (Exertis total)
Specialism: Broadliner
Vendors include: Dell, Lenovo, Acer, Kyocera, Lexmark, ASUS, Kingston, Logitech, MSI, Trust
HQ: Basingstoke, Hampshire
Exertis' UK revenues shrank by more than a fifth to £1.98bn in its year to 31 March 2022 as it battled supply constraints, reduced demand for consumer products as the pandemic eased, and the after-effects of a new warehouse management system implementation.
Built largely on the historic brands of Micro-P, Gem and Hammer, the UK business still generated a whopping 43 per cent of Exertis' total £4.64bn haul for the year.
Part of FTSE 100 giant DCC Group, Exertis claims to work with 1,400 vendors and serve 50,000 resellers and retailers across 21 countries. Thanks to a string of US acquisitions including Almo in December 2021, Exertis now boasts a £1bn North American business, with Ireland, France and the ‘Rest of the World' contributing a respective £398m and £350m and £878m to its top line.
Q&A with DCC Technology managing director Tim Griffin
What's been your biggest business highlight of 2022 so far?
The integration of our latest North American acquisition, Almo, into the DCC and Exertis family.
Do you expect to grow in 2022?
Absolutely, yes!
Distributor share prices have cooled over the last 12 months. Is that a concern? Yes and no.
The entire market has been challenged, but historically, as vendors work their opex envelop in economically difficult times, their reliance on distributors goes up - so I see a bright future.
As vendors work their opex envelop in economically difficult times, their reliance on distributors goes up - so I see a bright future
How is the chip shortage impacting you, and when will it end?
We are seeing the same issues as the wider market… asynchronous supply and demand compounded by commodity shortages with prioritisation, calls favouring one finished product over another - all adding up to a challenging environment with the end a way off yet I suspect.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
The long-term trend is for this to continue, but I suspect there will be a slowing in the short-term as markets adjust for the wider economic and political maelstrom.
What, if any, role does distribution have to play when it comes to sustainability?
Huge… at one end of the spectrum we have a responsibility to minimise the ‘carbon friction' we add as we play our traditional role in the supply chain, while at the other we have an influencing role to ensure the industry becomes more circular in nature and recycles, reuses and reclaims more of the product distributed.
What's been your biggest business mistake?
Not going with my gut fast enough.
The MD of our second-ranked distributor predicts that shortages will still be feature of the market next summer. See next page for more...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
2. Tech Data
UK revenue: £2.277bn (-5%)
UK staff: 1,300
Specialism: Broadliner
Key vendors: Apple, Dell, Microsoft, Lenovo, HP/HPE
HQ: Basingstoke
Now the world's largest IT distributor (following the completion of its merger with Synnex in September 2021), Tech Data is the second largest by revenue in the UK by our calculations, based on its latest available UK accounts.
Although a pandemic-induced fall in server and datacentre-related sales caused Tech Data's UK revenues to shrink five per cent to £2.28bn in its year to 31 January 2021, it leapfrogs Exertis in the rankings after the latter's UK business contracted by 22 per cent in its latest results (covering its more recent fiscal 2022).
Built on Tech Data's 1998 of Computer 2000 and bolstered by its acquisitions of Azlan and Avnet, Tech Data UK has recently added Google and Sophos to its vendor line card. US parent TD Synnex turned over $15.3bn in the second quarter of 2022.
Q&A with Tech Data UK&I managing director Dave Watts
What's been your biggest business highlight of 2022 so far?
The way our people have responded positively to all the challenges that they have faced and embraced the work we are doing around sustainability and DEI.
Do you expect to grow in 2022?
The IT industry as a whole can expect to see some growth, although inhibited by hardware shortages, especially in infrastructure products. Our main investment areas are where we will see highest growth: cloud, security, services, renewed growth in smart meeting rooms to support hybrid working, to name just a few.
What's the one market trend everyone else is missing?
The continued rapid growth of IP and services within the mix of the channels revenues vs classic reselling.
Have you made any significant vendor signings in the last 12 months?
There have been many, the most significant perhaps have been Sophos and Google Cloud.
I think we will be talking about shortages as a feature of the market this time next year still
Distributor share prices have cooled over the last 12 months. Is that a concern?
No. We have a clear and consistent strategy of driving value with our partners, which we continue to pursue.
How is the chip shortage impacting you, and when will it end?
It's impacting the starting and completion of customer projects and adding uncertainty into the mix of enabling complete solutions to customers. I think we will be talking about shortages as a feature of the market this time next year still.
What, if any, role does distribution have to play when it comes to sustainability?
A really important one. We can set a marker and lead the way for partners. We are already doing that having completed our assessments for scopes 1, 2, and 3 and making plans to reduce our carbon impact.
What's been your biggest business mistake?
I'm not sure about mistakes, but certainly I had over-estimated the complexity of practically getting Teams to work from home and now hybrid work.
Which distributor extended its UK revenue lead over the chasing pack to nearly £700m in its latest figures. See next page for the answer...
45 Distributors You Need to Know 2022 - Part Three
Meet the distributors ranked from 15th to 1st in this year's countdown
1. Westcoast
UK distribution revenue: £2.952bn (+8%)
Staff: 1,250
Specialism: Broadliner
Key vendors: HPI, HPE + Aruba, Lenovo, Microsoft, Apple, Samsung, Lexmark, Dynabook, Facebook, Juniper, Canon, Dell
HQ: Theale, Berkshire
Westcoast retains its crown as the UK's largest distributor, in the process extending its lead on the chasing pack from around £200m to nearly £700m.
The only member of our top five to grow in its latest publicly disclosed UK numbers, the Theale-based broadliner saw UK distribution revenues hike by eight per cent to £2.95bn in its year to 31 December 2021, according to figures it broke out for us.
Westcoast Holdings Ltd's total revenues hit £3.65bn in 2021, with the remaining £700m accounted for by around £515m of overseas (ie Irish, French and European fulfilment) distribution business and £180m of revenues from reseller arm XMA (which was divested on 30 April 2021). Total distribution revenues grew ten per cent to £3.47bn.
The 2021 uplift was underpinned by a double-digit hike in Westcoast's £2bn end-user compute business, as well as surging sales of accessories, AV, cloud and print, sales director Phil Bell revealed in an interview with CRN.
Although Westcoast recently added Dell to its linecard, current market challenges mean it is unlikely to achieve its perennial goal of double-digit revenue growth in 2022, Bell added.
Q&A with Westcoast's outgoing managing director Alex Tatham
What's been your biggest business highlight of 2022 so far?
Winning and launching Dell (client and enterprise).
Do you expect to grow in 2022?
Yes - double digit percentage.
What's the one market trend everyone else is missing?
Microsoft Teams will converge the voice channel with IT dramatically (and finally!)
Have you made any significant vendor signings in the last 12 months?
Yes - lots: new Cyber team, Lenovo ISG, Logitech, Asus more to come.
Which emerging vendor/technology are you tipping for take-off in 2022?
Phished - phishing training technology.
2022 will have been a successful year for your company if… we land our new vendors well, sell Dell beyond expectations and establish Westcoast as a leading Cyber, AV and VoIP player.
2022 will have been a successful year for your company if…we land our new vendors well, sell Dell beyond expectations and establish Westcoast as a leading Cyber, AV and VoIP player.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Not for us as a privately owned business! Westcoast are not affected by such a distraction!
How is the chip shortage impacting you, and when will it end?
Significantly impacting enterprise business and networking in particular - easing in PCs.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Consolidation will continue.
What, if any, role does distribution have to play when it comes to sustainability?
It will be critical in distilling vendor information into useable and measurable information/statistics for resellers as well as increasing drop shipment/logistical services for the whole channel.
What's been your biggest business mistake?
Not investing in cyber security vendors earlier.