Micro P and Gem parent posts interim operating profit rise


Micro P and Gem parent posts interim operating profit rise

Microscope contributor


The consumer and online reseller markets helped Micro P and Gem parent DCC Sercom post increased operating profits for the fiscal first half of 2009, offsetting sluggish demand in the enterprise sector.


In interim results for the six months to 30 September, DCC Sercom – owner of the UK distribution stalwarts – posted revenues of €665m, down 4.1% on 2008, though operating profits climbed 8.2% to €13.4m.


It was a tale of two halves as the division noted market share gains in the British reseller and retail markets but a drop off in sales in the high-end business space.


“The business performed well in Britain, increasing its share of the games market, increasing business with e-tail customers [and] broadening its reach into the supermarket customer base,” said DCC Sercom.


“[The] enterprise distribution business had a difficult first half and experienced a decline in operating profit. While market share was maintained, demand for certain enterprise products declined significantly, impacting profitability,” the firm added.


Management at the company forecasted that operating profit will be broadly in line with the prior year on a constant currency basis.


Sales at DCC Group – which also includes the Energy, Healthcare, Environmental, Food & Beverage units – totalled of €2.8bn, down 3% at constant currency rates.


Group profit for the period was €35m down from €43m a year earlier, including €4.5m exceptional charges relating to the integration of acquisitions and integration costs, and the operating margin was 2.1%.


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