Micro-P parent grows annual sales, profits

Micro-P and Gem parent SerCom, the IT arm of DCC, has posted improved results for the fiscal year ended 31 March 2010, with chief executive Tommy Breen hailing"excellent results in its distribution businesses in Britain." DCC SerCom made total sales of €1.6bn, up 4.3% on 2009 and ope

Micro-P and Gem parent SerCom, the IT arm of DCC, has posted improved results for the fiscal year ended 31 March 2010, with chief executive Tommy Breen hailing "excellent results in its distribution businesses in Britain."

DCC SerCom made total sales of €1.6bn, up 4.3% on 2009 and operating profit of €40.8m, up 1.7% or 8.6% and 6.4% respectively on a constant currency basis.

The reseller-facing distribution arm of the business - which accounted for 38% of total sales at SerCom - saw strong market share gains, particularly in the mobility channel.

Meanwhile, the enterprise distribution business - which made 19% of unit sales - had a tougher year, maintaining its market share but the ongoing squeeze on some enterprise products knocked profitability for six.

The supply chain management business saw sharp declines to due an oncoming change in a major customer's procurement strategy.

Group-wide pre-tax profit up 19.7% (27.2% at constant currency levels) to €164.9m (£141.4m) on sales of €6.72bn but the firm is nevertheless guarding against complacency in the coming months.

In a statement, Breen warned that "the outlook for the year to 31 March 2011 is framed against the continuing uncertain economic outlook and has regard to an assumption that the weather pattern will not be as favourable as it was in each of the last two financial years."

The group anticipates an operating profit increase of approximately 10% during its fiscal 2011, and hinted that it planned to "pursue an increasing number of acquisition opportunities".

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