CMS Distribution parent reports record £325m in revenues

Pretax profits at Co Mayo-headquarterd Storit Ltd more than double to £10m

CMS founder and chief executive Frank Salmon: “Our enterprise business continued to outpace the market . . . [and] our retail channels also delivered high growth”

CMS founder and chief executive Frank Salmon: “Our enterprise business continued to outpace the market . . . [and] our retail channels also delivered high growth”

 

Storit Limited, the holding company of the Co Mayo-based technology products distribution and manufacturing business CMS, saw turnover rise 82 per cent to a record high last year.

The Kiltimagh-headquartered company established by former EY Entrepreneur of the Year finalist Frank Salmon in 1998, reported revenues of £325 million (€389 million) for 2016, up from £178 million a year earlier.

It also recorded earnings before interest, taxes, depreciation and amortisation (ebitda) that exceeded £10 million for the first time, rising 126 per cent to £12.3 million. Pretax profits more than doubled to £10 million from £4.2 million.

CMS Distribution is the largest independent distributor of data storage, networking and IT infrastructure solutions in the UK and Ireland, servicing over 50 manufacturers and 2,800 resellers.

Company founder and chief executive Frank Salmon retains an 85 per cent stake in the trade-only group, which employs 350 people across Ireland, the UK, the Netherlands, Sweden, Spain, Australia and China.

“Our enterprise business continued to outpace the market, driving strong growth in security, information management, storage and open source technologies, along with our retail channels, which also delivered high growth,” said Mr Salmon.

British sales

As much as 80 per cent of CMS’s sales derive from Britain. The company acquired UK rival Widget Group, which has operations in the Netherlands and Sweden, for an undisclosed sum last year in a move that gives it a foothold for further expansion into mainland Europe.

Other investments last year included the acquisition of a majority stake in Newgen Distribution, a Swedish-based distributor serving the Scandinavian market, and the launch of a branch in Madrid.

Post year-end, Storit announced the acquisition of TNS Connect, an award-winning distributor of emerging technologies and accessories, headquartered in Ireland, but also operating in the UK, mainland Europe, Australia and China.

Accounts filed with the Companies Registration Office in Dublin last summer show Storit’s main unit, CMS Distribution, recorded pretax profits of £2.87 million (€3.34 million) in 2015 on turnover that rose to £166 million.