Sergey Nivens - Fotolia
UK delivers growth for CDW
Full year numbers from the US firm indicate that the UK performed well over the course of last year
The UK has delivered double digit growth for CDW but exchange rates between Sterling and the Dollar had some impact on the firm's 2017 financial results.
Although the firm does not break down the specific UK performance, combining it with Canada in the 'other' column, it revealed that there was double digit revenue improvements in 2017.
Total net sales last year were up 8.7% from $13,982m to $15,192m and net income increased by 23.2% to $523m. Net sales for CDW's Canadian and UK operations were $428m, which was a 20.3% improvement on 2016. The numbers were ahead of expectations.
Thomas Richards, CDW's chairman and CEO, said that it had been following a strategy that focused on having a nimble business model, broad product portfolio and balanced customer end-markets: "Our 2017 results continue to prove out the success of investments we’ve made in our three-part strategy."
Breaking down the performance into specific business areas the corporate segment net sales were up by 7.8% ton $6,347m; the small business segment climbed by 9.3% to $1,246m; public sector sales, including government, education and health, were 8% higher than 2016 at $6,038m.
Richards said that the prospects for the year ahead remained good and it was set to benefit from changes made to the tax structure in the US.
“For 2018, we expect to continue to outpace US IT market growth by 200 to 300 basis points on a constant currency basis. Operating results will be amplified by the reduction in our corporate tax rate from the 2017 Tax Cuts and Jobs Act and we expect to deliver non-GAAP net income per share growth in the low to mid-20% range. We intend to re-invest a portion of the incremental cash flow into our coworkers and our strategic initiatives, as well as continue to execute against our capital allocation priorities," he said.