Logicalis is reporting that its UK operation took a hit.
For the 12 months ending 29 February 2016, the UK arm of the Cisco, HP and IBM partner saw revenue drop from £169.8 million in the previous year to £153.9 million, while operating profit swung from £6 million to a loss of £2.1 million.
For the year ending 29 February 2016 the Logicalis Group saw revenue drop from $1.51 billion to $1.4 billion while operating profit fell from $68.1 million to $52 million.
Logicalis parent company Datatec reported its half-year figures on the London Stock Exchange in October, showing a revenue decline of 7.6 per cent year on year to $3.13 billion for the six months ending 31 August 2016.
The company is vendor dependant on the likes of IBM, Cisco and HP and if any one of the principal vendors to the company terminates, fails to renew or materially adversely changes its agreement or arrangements with the company, it could materially reduce the company’s revenue and operating profit and thereby seriously harm the company’s financial condition and results of operations, the company said.
The Logicalis UK claimed that the IT industry continues to be a “rapidly changing environment“and management recognises the need for the company to continually adapt and grow.
“The directors remain optimistic about the company’s future prospects, and are executing a transformation programme which will ensure that it is best suited to deliver its customers in the long term.”
IT firm Logicalis said it has taken a 51 percent stake in a German company.
ITUMA, which is privaly owned, offers wi-fi services including 3D in location navigation, product promotions and retail ordering.
Why is Logicalis interested in this kind of stuff? President and COO Mark Rogers said because it can get exclusive rights to the wi-fi products and services. He said: “[It] is expected to achieve significant market penetration, driven off the back of customers’ investment in wireless or in pre-packaged managed and cloud services.”
He also said that will complement its existing partnership with Cisco and Logicalis will offer services across all the countries it operates in.
The software ITUMA has allows indoor navigation, product information and location.
ITUMA CEO Simon Marg said that the deal will allow it to spread its wings to Logicalis’ customers and companies across the world.
Gary Bullard will be the next CEO of Logicalis.
Bullard will take over the role of current CEO Ian Cook from the 1st of March next year. Cook will become a non-executive chairman of Logicalis.
Bullard has a long background in IT. He was UK CEO and EMEA CEO of Logica, and before that worked as MD of BT’s corporate business unit.
And he also held senior executives at Big Blue before then, as general manager of IBM’s golobal services EMEA and IBM Global Solutions in New York.
Bullard will join Logicalis in December as CEO in waiting. He said in a prepared statement: “I’m excited to be joining Logicalis and see a strong foundation on which to build momentum for growth in the areas of software defined networks, enterprise mobility and the cloud.”