DCC Technology says that it has seen increased demand for lower-margin consumer and home working products which appear to have off-set some of the woes in its higher-margin B2B areas and Pro AV operation remain challenging.
In the six months to 30 September, DCC Technology revenues rose by 9.7 percent to £1.96 billion and operating profit was almost flat, with a 0.7 percent improvement to £25.5 million.
DCC managing director Tim Griffin said he was encouraged by the revenue growth and had seen demand change as the pandemic wore on.
“The first-quarter results were more than a little challenging, particularly in the context of April and May, where we were locked down around the world. If you think about the half as a story of two halves, the first quarter was severely challenging, then a modicum of normality adjustment came through in the second quarter and we saw a significant bounce, particularly in consumer, retail and work-from-home technologies. That allowed us to deliver growth in both the top line and the bottom line”, he said.
Griffin is hoping it will be able to improve the fortunes at its Pro AV operation as customers return to offices, retail and public spaces that require audiovisual solutions.
DCC continued to manage costs and had seen some of its portfolio, including the healthcare business, achieve strong growth to offset the problems suffered by its oil and gas operation, the company said.
Distribution as a sector has come in for praise about its handling of the pandemic, with the CEO of the GTDC highlighting the positive response of the channel in the past seven months.
