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By | Paul Kunert 21st May 2013 15:30

Recession? Pah! Check out our swollen digits - CCS Media

Reports massive profit rise in midst of economic gloom... sales growth not bad either

CCS Media is laughing all the way to the bank after reporting soaring profits for calendar 2012 in spite of rocketing costs and biting economic conditions.

The Chesterfield-headquartered reseller reported operating profit of £1.38m compared to £669,000 in the previous year, and net profit moved up to £1.07m from £468,000. Sales grew 17 per cent to £80m.

The cost of sales climbed 16 per cent to £66.6m including a 20 per cent hike in wages and salaries to £7.17m - another 30 heads joined the company, taking the tally to 242.

Talking to The Channel, Terry Betts, CCS Media managing director said the firm had expanded the business in every area except for tape media - which it has sold since its inception more than 30 years ago.

"It was a combination of taking on new staff, increasing [cross selling] of the product range and increasing market share - the [product] market is shrinking so we needed to take share from rivals," he said.

The declining tape business was due to "capacity outstripping demand" and more interest in alternative storage tech.

Software sales shot up and CCS Media said it had started to make progress in building a tech services operation, "always one of the weaker areas of my business", said Betts.

The PC business came into its own, he said, despite the fact that PCs is a sector that some in the industry have "turned their noses up at because they don't think it is profitable".

"I've never walked away from that business. We had some nice refreshes, and businesses are starting to recruit [people again] so need more PCs," he added.

The UK PC market declined in 2012 and got off to a weak start this year too but Betts reckons a corporate upgrade cycle is now happening.

"I am aggressively targeting that market. We try to sell PCs as opposed to just taking orders".

But even in the midst of this, he said customers were opting for Windows 7 instead of 8. "We are not seeing mass take-up of that, I don't think people are convinced." ®

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