Distribution Central – now Arrow ECS – has recorded an increased profit for its 2016 financial year, despite a small drop in revenue.
The company, which was acquired by United States based distributor Arrow ECS in March 2016 – recorded revenue from the sale of goods of $21.4 million for the year ending 02 July 2016, down from $21.7 million a year earlier. The cost of sales however, was also down, leading to an increased gross profit of $2.4 million, up from $2.2 millon.
Profit for the period sat at $720,507 – a 51% increase on the previous year’s $474,414.
The company closed out the financial year with a solid improvement in total equity, up from $2.0 million to $2.7 million.
Arrow ECS’ acquisition of Distribution Central in March 2016 created a $500 million ANZ distributor, provided Distribution Central with new scale and access to Arrow’s substantial global portfolio of vendors which it previously hadn’t be anble to handle because of the resources required to support them.
The year also saw the company busy adding new vendors including Emerson Network Power, Sumo Logic, MobileIron, Cloud MGR and PlusOptic.
In February 2016 it was one of three Aruba vendors missing from the Hewlett Packard Enterprise’s new distribution line up in New Zealand – though the distributor did make the cut in Australia.
Earlier this year Nick Verykios, Arrow ECS ANZ managing director, told ChannelLife NZ the company aimed to offer a ‘sensor to sunset’ experience, with automation and IoT high priorities for the distributor, alongside a value recovery service and aggressive expansion of its vendor portfolio.
Distribution Central became Arrow ECS New Zealand in September, following its official name change.