Global Distie Westcon-Comstor has reported strong financial results for the fiscal year ending 29 February 2024.
This performance has been enhanced by a strategic shift towards recurring revenues and a data-driven approach, with significant growth in the cybersecurity and networking sectors.
Overall revenue increased by eight per cent to £2.88 billion, up from £2.67 billion in FY23. This growth has been attributed largely to robust software performance. Strategic vendor gross sales saw a ten per cent increase, maintaining a compound annual growth rate (CAGR) of ten per cent over the past five years.
Gross profit also significantly rose, climbing by 23 per cent to £314.84 million, compared to £256.64 million in the previous fiscal year.
Recurring revenues grew by 24 per cent, reaching £1.27 billion and representing 44 per cent of total revenue, up from 38 per cent in FY23. Adjusted EBITDA saw a substantial increase of 26 per cent, rising from £74.29 million to £93.91 million, with a 0.5 percentage point improvement margin to 3.3 per cent. Despite strong growth and product lead-time challenges, net debt remained stable.
David Grant, CEO of Westcon-Comstor, commented on the company’s performance, highlighting the resilience and efficiency exhibited in dynamic market conditions.
“These results demonstrate our resilience and efficiency when operating in dynamic market conditions whilst continuing to advance our vision of being the leading data-driven technology provider and specialist distributor of cybersecurity and networking solutions and services globally,” said Grant.
He was optimistic for the coming year, emphasising continued innovation and strategic acquisitions, including the acquisition of Rebura and the AWS Marketplace programme launch.
Westcon-Comstor emphasised a data-driven sales strategy. The company’s Intelligent Demand programme, based on advanced analytics and its customer insights platform, continues to thrive. Additionally, the Partner Insights tool launch within the PartnerCentral digital marketplace has enabled partners to monitor key performance metrics more effectively.
The company’s geographical performance was equally impressive, with double-digit growth in gross profit across all regions. Revenue grew by 6.7 per cent in Europe, 12.9 per cent in the Asia-Pacific region, and 3.4 per cent in the Middle East and Africa.
Cybersecurity and networking now account for 89 per cent of revenue. The 3D Lab initiative, which allows multi-vendor cybersecurity solutions to be tested in a virtual demo environment, has attracted over 1,500 users and generated more than £19.53 million in new business since its launch.
In January 2024, the company announced the launch of its AWS Marketplace programme, which aims to streamline transactions for partners and vendors and foster new growth opportunities. The acquisition of Rebura further strengthens Westcon-Comstor’s cloud capabilities, enabling comprehensive AWS solutions for its partners.
