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$100 mil and climbing for Synnex New Zealand

16 Jun 2014

Synnex New Zealand has reported a bumper revenue for the year ended 31 December 2013, with a 55% increase to pass the $100 million mark

The distributor recorded revenue from sale of goods and services of $103,389,144 for FY2013, up from $66,610,758 in 2012.

Profit for the year was down 30% to $666,258 however, as the company saw increased expenses after more than doubling its headcount – adding 30 staff in one month to reach a headcount of 55 in October 2013. That saw employee benefits expense increase from $1.8 million to $2.5 million.

Increased finance costs to run the business also contributed to the reduced profit, with finance costs up 48%.

The company closed out the year with a healthy total equity of $3,253,222, up from $2,586,964 at the close of 2012.

Richard Harri, Synnex New Zealand country manager, says key changes for the distributor last year included winning exclusive distribution of Microsoft Xbox. Harri says that appointment 'definitely helped us realise economies of scale in the warehouse', something that has been beneficial for the rest of the business.

Harri notes that Synnex now have 33 staff in its operations team, which is the core focus for the business.

The company was also appointed the exclusive distributor of both Microsoft Surface and Asus notebooks and tablets into national retail and won the exclusive distribution of WD external hardrives.

“We also saw increased commercial business, particularly with Lenovo and Asus,” Harri adds.

He says the distributor also saw increased sales of notebooks, tablets and two-in-one's as independent shops and systems builders opted to sell the devices they couldn't build themselves.

Harri says the company is progressing towards another record financial year this year.

In April the company was appointment as a Microsoft OEM authorised distributor and earlier this month took over distribution of Acer, alongside Dove Electronics.

Harri says staff numbers are also continuing to grow, with the recent hiring of a product manager exclusively focused on components.

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