Exertis profits rise in full-year results despite challenges in the UK

The distributor says it experienced a 'significant level of supply constraints and reduced demand' in the UK

Exertis' profits have increased over the course of a year despite it seeing a "significant level" of supply constraints and reduced demand in the UK.

The distributor has posted its financial results for the year ending 31 March 2022, saying it saw "very strong operating profit growth".

It posted a revenue of £4.6bn - a 3.6 per cent increase on the year before - and an operating profit of £81.7m, up 12.8 per cent from the previous 12 months.

Exertis, which is the brand name for DCC Technology, says growth was driven by contributions from acquisitions completed during the year, with strong performance being seen in North America.

But it said the UK business experienced a "significant level of supply constraints and reduced demand for consumer products as the pandemic eased".

Although now operating effectively, the business was also impacted during the year by the implementation of a new warehouse management system.

These factors contributed to a decline in both revenue and operating profit in the UK for the year, Exertis said.

However, the distributor said the business generated "good organic" growth in Continental Europe.