European storage VAR Proact saw revenues and profits fall across all regions except the UK in H1 results
The VAR blames declining revenues and profits on longer sales cycles and ongoing chip shortages.
Proact is a Stockholm-based Dell, NetApp and Pure Storage partner and it says it suffered a three percent drop in group revenues for its six months ending 30 June to £147.97 million, while EBITA fell by 11 percent.
UK revenues bucked the trend and grew by 34 percent during the first six months of the year, while profits grew by 24 percent.
The UK operation was bolstered by its acquisition of Manchester-based Cetus Solutions, while organic revenues grew by 19 percent.
“System” revenues grew by 69 percent in the UK, while Services grew by a more modest five percent.
Proact CEO Jonas Hasselberg said that the wider Proact group, which operates across the Nordics, Baltics, Benelux, Spain, Czech Republic and Germany, was negatively affected in Q2 by longer sales cycles and the ongoing chip shortage affecting the global IT market.
“Many customers are now careful regarding investment decisions, as it remains unclear how ways of working and structure will change in the longer run”, said Hasselberg.
“Our continued view is that the declines primarily are related to longer sales cycles rather than lost business and that we continue to have a strong position on a growing market.”
