DCC Technology, which trades as Exertis, has revealed its Q3 2015 interim management statement.
The firm has reported that operating profit was behind the prior year, ‘as the business continued to be impacted by reduced demand for tablet, smartphone and gaming products’.
The DCC group as a whole – which includes DCC Energy, DCC Healthcare, DCC Environmental and DCC Technology – stated a Q3 2015 operating profit ‘very significantly ahead of the prior year’, reporting ‘excellent growth’ in all areas apart from DCC Technology.
“The year to 31st March 2016 has been a milestone year for development in DCC with the completion earlier in the financial year of DCC's two largest acquisitions to date, Butagaz and Esso Retail France,” reads the statement.
“The cash outflow on acquisitions completed in the nine months to 31 December 2015 (which includes the previously committed acquisitions of Butagaz and Esso Retail France), inclusive of a net movement in deferred and contingent acquisition consideration, was £385 million. Total committed acquisition expenditure in the nine months to 31 December 2015 was £39 million.”
DCC is expected to announce its results for the year to 31st March 2016 on 17th May 2016.
In September 2015, the UK tech distributor blamed ‘one large supplier’ as profits almost dropped in half. It saw its operating profit fall from £15.2 million to £8.6 million year-on-year during the six months ending September 30th 2015, blaming the fall on "reduced sales of products of one large supplier".
Exertis has made a number of acquisitions over the past few years and has recently invested in a China office as part of its strategy to increase its global presence. Find out what its Chinese expansion means for the UK PC channel here.