Firms should not be allowed to use Brexit as a reason to slow down according to PCM boss Frank Khulusi.
Speaking to the assembled throngs on an earnings call, Khulusi said UK management has been talking more about Brexit but claimed that the political saga should not be considered as a justification for any slowdown.
PCM made £13.4 million for the quarter ending 31 March, up 50 per cent on the previous year in the UK.
PCM has hinted that it may expand further into Europe after its UK business scored £50 million in sales last year.
For the year ending 31 December 2018 PCM reported flat revenue of $2.2 billion, while in the UK sales hit $62.4 million. But its UK business, which launched in 2017, now equates to three per cent of the business’ overall sales.
On an earnings call, CEO Frank Khulusi said that the reseller might look to move further into Europe after Brexit.
US-based PCM’s UK divisions did very well and saw revenue hit $9.1 million in the last quarter
For the three months ending 31 December, the wider PCM business saw its revenue decline four percent to $563.4 million, but its UK division, however, continued to grow, with its revenue more than trebling from the $2.7 million it hit in the previous quarter.
The UK arm launched in April last year and has since taken on a host of ex-Misco staff and made two acquisitions.
PCM CEO Frank Khulusi said the UK business has capitalised on UK market conditions.
“Concerning our new UK segment, it continues to grow rapidly and capture the attention of vendors, customers and competitors alike in this significant market”, he said.
“We are delighted to share that January was our first month with the UK segment operating results near break-even. This significant milestone for a start-up was reached eight months from our launch date.
“We are confident in our trajectory for our UK business, and we currently expect at least a $1 million improvement from the fourth quarter in our UK bottom line in Q1, and we continue to expect full-year profit for 2018.”
The UK segment of PCM has generated $12.2 million in sales since its launch in PCM’s Q2.
However, Khulusi was not so happy with PCM’s performance in the US where it lucked out in the US public sector.
“We experienced significantly lower than anticipated contribution during the quarter from our public sector business that drove the year-over-year decline in consolidated results.”
PCM has written a cheque for Cisco Gold partner Provista as part of its cunning plan to rapidly expand in the UK market.
PCM appeared in the UK in May and has been headhunting staff from rivals bought cloud services provider The Stack Group.
Provista is a Glasgow-based network and security reseller with revenues of £7.7 million. The move gives PCM several top vendors including Cisco, Avaya Saphire and VMWare. It scores offices in Aberdeen and Birmingham.
The deal will additionally contribute to its “opportunity to extend its growth of the existing managed services and multi-lingual global service desk within the European region”, PCM said.
Donavan Hutchinson, managing director, UK & International for PCM UK said that with the combined investments and the acquisition of Provista UK and The Stack Group, PCM was positioned to accelerate its UK growth across all advanced solutions categories.
PCM president Jay Miley added: “We are continuing to follow our global strategy to bring our leading North American solutions to the UK, and this acquisition further expands one of our largest vendor relationships through the acquisition of a UK Cisco Gold Partner.”
Stuart Little, director and major shareholder of Provista UK, said: “When PCM contacted us and shared their vision for the UK, it fit perfectly with our own ambitions to accelerate the growth of Provista in the UK. After having built the business to achieve Cisco Gold Partner status, it is exciting to now be able to be part of PCM and take the business to the next level, offering our solutions and services across the UK while complimenting the other robust PCM offerings.”
US reseller giant PCM has written a cheque for Liverpool-based cloud service provider Stack Technology.
PCM entered the UK by starting a local operation from scratch in May, but hinted at the time that it may look to back this up with an acquisition.
Stack bills itself as a specialist in cloud, security, virtualisation, data services, unified communications and infrastructure, and has two accredited cloud datacentres. It is worth about £2.9 million.
PCM said the acquisition will speed its efforts to pick up vendors in the UK and boost its managed services prowess.
PCM CEO Frank Khulusi said: “The acquisition of The Stack Group is a key milestone for our new UK segment to further support our clients’ needs in the services and solutions market.
“As a leading provider in North America, we continue to look for ways to accelerate market share gains and this acquisition will allow us to expand on our offerings not only to new customers in the UK and European markets, but also to our global customers based in North America. We are pleased to welcome The Stack Group team to the rest of the PCM family and look forward to jointly providing world-class services and solutions to our clients across the globe.”
Stack will add the following vendors Cisco, Citrix, Dell EMC, Fortinet Meru, NetApp, Nutanix, Sophos, Veeam, VMware, Ubiquiti Networks and Zerto.
PCM has unveiled its entry into the United Kingdom and Europe through a wholly-owned subsidiary, PCM Technology Solutions UK.
For those who came in late, PCM is a big US technology solutions provider with 2016 revenues of $2.25 billion and nearly 4,000 employees.
Opening in the UK is the next major step in PCM’s global expansion following its successful entry into Canada in 2015. PCM UK will be conducting a Grand Opening celebration on 2 May and expects to begin sales operations during the second quarter.
PCM UK is driving towards considerable scale and expects to employ 90 co-workers by the end of 2017.
PCM CEO Frank Khulusi, Chairman said that the outfit’s expansion into the UK marks a major milestone for PCM.
“PCM UK will be our hub for the UK and the rest of Europe. Many of our North American customers are increasingly global with needs for us to deliver to their European operations cutting-edge IT solutions with the same high level of service they have grown accustomed to from us in North America.”
The outfit said that there are significant potential opportunities for customers based in the UK and across the European Union.
“We believe now is the right timing for us to pursue this additional market, and launched our UK operations accordingly. We spent a great deal of time during the quarter setting up the operation, hiring a managing director and various other leadership roles to ensure the success of this international expansion.”
PCM UK has recently appointed Donavan Hutchinson as its Managing Director. Hutchinson joined the PCM in February to help develop and create the UK operation.
Hutchinson worked for other Global IT solution providers where he was directly responsible for creating and effectively executing collaboration programs to extend service offerings from North America based clients into the UK, Europe and Asia Pacific Markets.
Hutchinson, stated, “I am excited to bring my experience and record of accomplishment of successfully growing global sales of IT solutions to the PCM family. With a mission of delivering a very high level of service to our European clients, we have already built an incredible management team to lead the operation, and I’m confident we will be able to expand the successes of PCM to the UK and across Europe. “
Jay Miley, PCM’s President, added: “Our success in rapidly building the UK operation and preparing it for a grand launch has been one of leveraging our strong relationships with our key vendors and distribution partners who believe in our team and our strategic business plan. I would like to personally thank all of our internal stakeholders, partners, vendors and distributors who are assisting us in executing against our strategy to extend the high level of service and support that our customers currently enjoy today.”
PCM UK is now hiring for positions in sales, vendor management, purchasing, marketing, IT and finance as well as a variety of other business roles.
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