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June 2019 www.avnews.eu Page 8


Exertis balances its global portfolio.


Last year was significant for Exertis for expansion into North America, with both Jam and Stampede added to DCC’s port- folio.Now it's Europe's turn.


Page10


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Spectacular results for DCC drive new acquisitions DCC, the international con-


glomerate that owns Exertis, has announced its results for the year ending 31 March 2019. Described as “spectac- ular” by DCC Technology Man- aging Director Tim Griffin, the year saw DCC group’s revenues (year-on-year) by 16.0% to £15.2 billion (up from £13.1 billion) and operating profit up 20.1 % at £460.5 million (up from £383.4 million). With approval of this year’s final dividend (up 13.7%), DCC will have recorded 25 years of un- broken dividend growth since listing in 1994.


2018/19 concludes another successful


tions by DCC Technology, with Comm-Tec


year in


Germany


acquisi- and


Amacom in the Netherlands added to the group’s portfo- lio, strengthening its Europe- an presence and balancing its global holdings.


Commenting on the results, Donal Murphy, Chief Execu- tive, said:


“I am very pleased to re- port that the year ended 31 March 2019 has been anoth- er year of significant progress for DCC. An excellent trading performance, very strong cash generation and continued ac- quisition activity across the Group exemplifies the DCC business model. I am particu- larly pleased that each division recorded very strong growth in operating profit and traded in line with expectations, given the mild weather conditions experienced during the year. DCC Technology’s acquisition of both Comm-Tec and Ama- com significantly enhances our business in Continental Europe and will strengthen our relationships with suppliers and customers in the region.


of


Following the equity placing completed


during the year,


DCC has a very strong and liq- uid balance sheet, leaving the Group well placed to continue its targeted acquisition strat- egy. The Group continues to have the platforms, opportuni- ties and capability for further development across each of our four divisions. We expect that the year to 31 March 2020 will be another year of profit growth and devel- opment for the Group.” Coinciding with the announce- ments of the results, DCC Tech- nology agreement to acquire Comm-Tec GmbH (“Comm- Tec”) in Germany and Amacom Holding BV (“Amacom”) in the Netherlands. Comm-Tec is a leading value-added distributor of Pro AV and IT products to system integrators and resellers across Germany, Austria, Swit- zerland, Italy and Spain. The business recorded revenue of approximately €90 million in its latest financial year and employs approximately 150 people. Amacom is a leading distributor


of consumer elec-


tronics, AV and IT products, primarily to the retail and etail sectors in the Netherlands. The business recorded revenue of approximately €160 million in its latest financial year and em- ploys approximately 80 people. The new European acqui- sitions


follow two significant additions to the DCC portfolio last year. In September 2018, DCC Technology announced the acquisition of Jam, a mar- ket-leading North American specialist sales, marketing and services business serving the professional audio, musi- cal instruments and consumer electronics product sectors. Headquartered in Montreal,


Smart home sales to reach 520 million units by 2022


Parks Associates has published a new whitepaper: “Open for Busi- ness: Future Flexibility for Smart Home Services.." The whitepaper forecasts sales of connected con- sumer devices will exceed 520 million units by 2022, including networked cameras, security sys- tems and connected health devic- es. The whitepaper, sponsored by Calix, presents the opportunities emerging from this wealth of resi- dential devices and details strate-


partnership enables providers to serve the varied present and future use cases."


"Service providers need to re-posi- tion themselves for growth and gain a foothold in the smart home. The innovators are starting with tools that provide visibility into the home and supporting systems so they can de- liver best-in-class whole-home Wi-Fi coverage," said Michael Weening, EVP of field operations for Calix. The whitepaper concludes that:


The direct channel to the industry


Tim Griffin, Managing Director of DCC Technology – “spectacular” re- sults to be followed by light touch integration and subtle rebranding of acquisitions.


Canada, Jam is active in the professional audio and musical instruments sectors, providing a range of industry-leading, value-adding services and solu- tions to both its vendor and customer partners. The busi- ness recorded revenue of US$ 323 million in the year ended 30 April 2018 and employs ap- proximately 570 people. The Jam acquisition builds on that of Stampede in July 2018. Headquartered in Buffalo, New York, Stampede supplies Pro AV products including large for- mat display, projectors, lamps, drones and accessories to sys- tem integrators, value-added resellers, retailers and etailers in the US, Canada and the UK. Stampede also provides Pro AV solutions to the hospitali- ty, government, corporate and education sectors. Stampede recorded revenue of US$280 million in the year ended 31 December 2017 and employs approximately 210 people.


The North American acquisi- tions are consistent with DCC Technology’s strategy to extend the geographic footprint and product range of its successful and growing Pro AV business. Questioned about the chal- lenge of integrating the new- ly acquired businesses in to the Exertis model, Tim Griffin pointed to the light touch inte- gration and subtle rebranding necessary to preserve the value of acquisitions.


Service providers are in an excellent position to deploy, maintain, and service the smart home. [Photo courtesy of Crestron Europe]


gies for service providers to oper- ate in the smart home market in ways that leverage their strengths while avoiding the pitfalls of past efforts.


See News analysis: Exertis bal- ances its acquisitions portfolio. Page 8.


"A future-flexible platform is a critical component for suc- cess in the IoT because smart strategies represent a long-term investment," said Brad Russell, Research Director, Connected Home, Parks Associates. "While service providers are in an excel- lent position to deploy, maintain, and service the smart home, they generally do not want to develop and maintain their own propri- etary solution to do so. But the market has matured where ven- dors are offering new turnkey solutions, and the right long-term


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• More than half of professionally monitored subscribers have at least basic interactivity with their security system.


• At the end of 2018, 24% of US broadband households subscribed to professional monitoring.


• 10% of US broadband households own at least one networked camera. • The majority of consumers 50+ years old are willing to pay $30 per month for an independent living system that has their must-have fea- tures, such as fire detection, panic buttons, automatic alerts sent to loved ones, and home security de- vices to deter intruders. To download this whitepaper, visit https://parksas- sociates.com/whitepapers/openfor- business-wp2019.


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