CORPORATE BROCHURE
HELPING YOUR BUSINESS GROW
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OUR MISSION IS TO HELP GROW YOUR BUSINESS! The population of the globe creates 2.5 quintillion bytes of data daily. Most of the existing data was created in the last two years alone – and we are talking about small data, as big data is yet to come. Data will remain one of the top areas of technology investment this year – be it for backup solutions, disaster recovery, data security or storage. As a business, we are always on the lookout for the next disruptive technology. Having knowledgeable staff that care and can bring new opportunities to our customers is key to our longevity and our future. Investing in people and systems enables us to continuously deliver operational excellence. CMS Distribution has kept its focus and efforts on being the preferred distributor for IT infrastructure and consumer solutions in the UK and Ireland. We strive to always provide competitive advantages to our customers. We are doing this by offering resellers and retailers a variety of leading edge solutions in data storage, security, networking, software licensing and point solutions. In 2015, our financial year-end results were recorded as £178m, with a 25% year-onyear EBITDA growth. Our strong balance sheet allows us to drive further growth in sales, enabling CMS to scale efficiently. Our three business divisions – consumer, hardware and
software, have shown excellent growth to date. The group’s headcount has also grown to over 215 people across the four sites: Castleford, Harrogate, Ireland and London. Earlier in 2016, CMS opened a new office in the heart of London’s tech city, where many of our customers and vendors are opening new offices. We feel it’s important to be located close to the partners we serve, whom are always welcome at our office. The new location will also assist CMS in attracting talent, in our quest to maintain a sustainable business. Finally, I would like to take this opportunity to thank you for your loyal support and commitment and for giving us the opportunity to work with your business. I do hope we meet and exceed your expectations every time. Frank Salmon CEO & Founder
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CMS New Flagship Office in London
CMS Sales Conference 2016
AlienVault Internal Launch in Ireland
UK Partner Forum 2015
Irish End-user Event in 2015
AVG Business Internal Launch in the UK
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CONTENTS About CMS Distribution 28 years of exceeding expectations The making of CMS Distribution Meet the management team CMS voice - our people shape our business Technologies Hardware Continued growth in both component and solution sales Software Security to deliver strong organic growth Consumer Supporting our customers to be ahead of their competition Services Marketing Digital marketing embraced to achieve record breaking results CMS Partner Forum has set the benchmark for IT industry events Operations Smooth, seamless and tailored delivery
6 10 12 14
16 18 20
22 24 26
Financials Exciting financial outlook for 2016
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Coporate Social Responsibility CMS team in the community
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About CMS Distribution
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28 YEARS OF EXCEEDING EXPECTATIONS “To exceed the expectations of our Stakeholders we continually strive for excellence in everything we do.” Frank Salmon
Ever since it was founded in 1988 by Frank Salmon, CMS Distribution has been striving to become the UK and Ireland’s largest independent distributor. After servicing the IT reseller and retailer market for more than 28 years, CMS Distribution is now the UK and Ireland’s largest independent value-added distributor of data storage, networking and IT
infrastructure solutions. CMS Distribution’s success is the result of commitment to delivering product and market expertise, outstanding account management and operational excellence. Fast-paced technological evolution, the economic turmoil and tough competition have been key factors that CMS have thrived upon.
About CMS Distribution
Our guiding philosphy is: “To exceed the expectations of our Stakeholders. We continually strive for excellence in everything we do by delivering new growth opportunities, market penetration and profitability to our resellers and vendors. We supply our partners with flexible trading terms and excellent customer service. I believe that our unchanging guiding philosophy has been the reason for our success for the past 28 years and will continue to drive our success,” considers Frank Salmon the founder of the company.
of business. The company, known at this time as CMS Peripherals, with a small team of eight reached its first million in just three years from launch. In 1993, the company expanded into the Irish market and one year later sales reached over £10m. Four years later the company published a revenue of £50m, representing a five times increase from 1994’s revenue. CMS Peripherals continued its organic growth, reaching its first £100m in 2014, while the industry and media began referring to CMS as the Storage Distributor of the Year.
Reaching £50m In Ten Years
Investing In The Future
CMS Distribution grew sturdy during its first 10 years
In 2011 CMS Peripherals became the UK and Ireland’s
Our Business DNA
doing business has direct implications for the industry. CMS Distribution’s core values promote business excellence, integrity and trust. Our aim is to create long-term value for all internal and external stakeholders.
As the largest independent value-added distributor of data storage, networking and IT infrastructure products and services in the UK and Ireland we understand that our way of
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largest independent storage distributor after acquiring the Harrogate-based distributor CCI Distribution. Following the acquisition CMS reached an annual revenue of £145m and employed more than 175 staff. In 2013, CMS expanded into new territory when it bought enterprise software distributor Interactive Ideas, complimenting their existing storage portfolio with cutting edge software solutions. Interactive Ideas became an integral part of CMS’ enterprise division and a key contributor to its business objective of 20 percent annual growth. The deal also brought CMS 650 new customers and 10 incremental vendor partnerships, allowing the newly branded CMS Distribution to benefit from new business opportunities.
Our four core values define our business DNA and the way we work with our business partners at any time, under any circumstances.
1. People
2. Operational Excellence
3. Profitable Growth
4. Exceed Expectations
Our people approach all aspects of our business with honesty and integrity.
We continuously seek out opportunities to be the best.
We create value that lasts.
We focus on exceeding the expectations of all our stakeholders.
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About CMS Distribution
“We work tirelessly to provide our customers with innovative and proven technologies, with good margin making opportunities, and they reward us with loyalty.” Frank Salmon The acquisition of CCI Distribution and Interactive Ideas and the overall expansion of CMS’ customer reach demanded large investment in our operations and logistics. As a consequence we merged our two warehouses into one industry-leading operational centre based in Castleford. This new investment allows CMS to stock more product lines and provide premium in-house customer service to the channel, offering an opportunity for future growth. Frank Salmon commented: “We continue to invest in our value-added service. We work tirelessly to provide our customers with innovative and proven technologies, with good margin making opportunities and they reward us with loyalty.” The positive results of these business actions were revealed in the same year, when CMS announced a 30% revenue growth and record earnings. Commenting on 2014 results and on the future, Frank Salmon said: “This is a great
result - the best ever in CMS’ history. We are fortunate to have first-rate teams that are committed to helping our customers grow their businesses. Our focus is to continue to invest in systems, people and innovative vendors that will help us to exceed our customers’ expectations. True value-add is our key to growth and we look forward to serving our customers and delivering growth opportunities in 2016 and beyond.” CMS Distribution’s aim to follow industry trends and stay ahead of the competition drove the opening of a new flagship office in the heart of London’s Tech City. Being the only IT distributor in the area, with state of the art facilities which are available to our vendors and resellers, offers a unique value-add.
CMS Distribution’s Proactive Team CMS Distribution employs more than 215 people across four locations - London, Harrogate, Castleford (UK) and Kiltimagh (Ireland) who are working and contributing to the success stories of over 3,000 resellers and more than 60 vendors. With a dynamic and proactive team of product managers, account managers and pre-sales engineers, an experienced marketing team and an industry-leading operational centre CMS will continue to exceed partners’ expectations.
About CMS Distribution
Experts in core hardware technologies, servers, direct and NAS, SAN & backup products.
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Expertise in infrastructure, security, network, systems, information and data management software.
YEARS EX
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P E RIE N CE
Specialised in memory, hard disk and solid state drives, peripherals and networking.
215 EMPLOYEES 3,000+ RESELLERS IN THE UK & IRELAND
London Harrogate Castleford Kiltimagh
60+ SOFTWARE, HARDWARE AND CONSUMER TECHNOLOGY MANUFACTURERS
25% EBITDA GROWTH OVER 2014
£178m TURNOVER IN 2015
£4.2M CASH BALANCE INCREASE
About CMS Distribution
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THE MAKING OF CMS DISTRIBUTION Founded in London by Frank Salmon Aiming to become the UK and Ireland’s largest independent storage distributor
1988
Sales of over
Sales of over
£50m
£100m
Launched CMS Peripherals in Ireland
75 People
140 People
1993
1998
2004
1991
1994
8 People
30 People
Sales of over
Sales of over
£1m
£10m
2001/3
2005/9
Specialist Distributor of the year winner
Distributor of the year winner
2001, 2002 & 2003
2005 & 2006
“I believe that our guiding philosophy has been the reason for our success for the past 28 years and will continue to drive our success.” Frank Salmon
Storage Distributor of the year winner 2005 & 2009
About CMS Distribution
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Move to new flagship office in Worship Street, London
Logistics & Integration Centre opens in Castleford
Deployed SAP systems company wide
2010
2012
2014
2015
2011
2013
2016
Acquisition
Acquisition
WORKING WITH OVER
3,000 Resellers & 60 Vendors Rebrand to
215+ People
2011
4 Locations London Harrogate Castleford Ireland
Sales of
ÂŁ178m+
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About CMS Distribution
Meet the management team
Frank Salmon CEO & Founder
Frank has been leading CMS Distribution for more than 28 years, expanding it into the largest independent value-added distributor of data storage, networking and IT infrastructure solutions in the UK and Ireland.
Sean Sweeney
Non-Executive Director & Chairman Sean is an experienced non-Executive Director and Chairman, leading and participating on Boards of diverse businesses and social enterprises.
Trevor Pluskota
Tom Burke
CIO & CTO
CFO With 17 years experience in the IT Industry and having Senior Management roles in both Europe and the USA, Tom is responsible for Acquisitions, Corporate Finance, Commercial, Legal and Banking matters.
Trevor is responsible for the delivery of IT solutions and services that underpin the organisation’s growth strategy, shaping the future direction of CMS Distribution.
Paul Roughley COO
With over 30 years of industry related experience, Paul is responsible for the group’s purchasing, logistics and IT functions.
About CMS Distribution
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Nick Preston
Commercial Director With over 17 years of experience in the technology industry, Nick is responsible for the sales team along with business development and product management.
Frinos Constantinou
Patrick Healy
Frinos is a passionate sales leader with strong strategic relations with key consumer brands. Over the past 2 decades, he has held a number of senior sales executive positions, acquiring extensive knowledge of the ICT Channel.
Patrick has held senior management roles in the USA and Europe prior to joining CMS as Managing Director of our Irish business. He is a proven sales leader who drives performance in his team.
Retail Sales Director
Managing Director - Ireland
Justin Griffiths
Enterprise Director After over 20 years in the IT industry, working for leading global resellers, Justin is using his extensive understanding of the channel business model for building CMS’ enterprise division.
Julia Radtke
Luke Noonan
Julia has 14 years experience in marketing and is passionate about building marketing programmes that secure long term partner relationships and generate strong revenue growth in the IT & storage industry.
Luke is using his 16 years of experience in identifying new product opportunities and vendor alliances for the group.
Marketing Director
Sourcing Director
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About CMS Distribution
CMS VOICE
OUR PEOPLE SHAPE OUR BUSINESS
Without our people CMS Distribution would not be the great company that it is today. Amongst our current head count of 215 we still retain employees who began the original start up journey with us back in 1988. We have retained the core agility and energy of a tech start up whilst enhancing our service levels, profitability and professionalism each year. We work together as one company and one team and in this way we achieve great results, and strive to exceed our customers’ and our own high expectations. We call it “winning together”. It is
essential to maintain a profitable and successful CMS. As we grow our business, we are also expanding our workforce and ensuring that we attract passionate, ambitious and talented people. Our
CMS Distribution’s Ambassadors
heard about CMS Distribution from a school friend who already worked here and I could see the company was going places and also that there was an opportunity for progression. As a result I decided to stay on and build my career here. I moved up from a logistics role in the warehouse to a supervisor and from there to an order processing/stock allocation role in the office. I was then given an opportunity to work in sales in our Harrogate office. I progressed to a senior account manager turning over approximately £6 million per annum with around 40 accounts and have recently been promoted to a team leader. CMS has provided a great platform to grow my career and develop into a successful sales professional,” says Stuart.
Stuart Jeyes, Snr Account Manager, Harrogate. “My career with CMS started as a temporary summer job, working in the logistics team before I started University. I had
20%
Employees +10 years at CMS Distribution
culture is one that stretches every employee to fulfil their potential, to develop, to be judged by their results and to be rewarded.
We have a proud record on internal staff progression and retention promoting and expanding from within as we “grow our own”. Our figures show that 20% of employees have worked for the company for more than 10 years. In a business sector that has in the past been seen as a male domain, we are one of the few Tech companies where almost 40% of employees are female. We could have picked any number of employees to relate their personal journey with CMS but please read below about just a few of our team.
John Flatley, Technical Pre Sales Consultant, London. “I have worked at CMS for 10 years; I started in first line IT and worked my way to network and infrastructure manager and now I am technical pre sales. I have seen a lot of changes with 4 new locations and 2 acquisitions and some
About CMS Distribution
major system changes. I have successfully completed multiple office moves from a systems side ensuring ERP, email and networks were all consolidated. I feel within CMS there are a lot of career path options. I have seen many people start their career in one department and progress and move into other departments and become successful,” comments John.
along the way. CMS celebrates were supported with the move and feel that we definitely made each person as an individual and lets us develop our own the right decision,” says Mark. techniques whilst providing us with a great platform to learn,” adds Sophia.
Sophia Anastasi, Business Development Manager, London.
Mark Hogan, Order Processing Manager, Castleford. Mark started working at CMS 17 years ago in the London warehouse. “Over the years I have been given numerous opportunities to progress and take on more responsibility. I have progressed from goods in’ team leader, warehouse supervisor and then warehouse manager in London and since moving to Castleford I am the retail and assembly manager,” says Mark. In 2014 Mark moved his family to Yorkshire where the new warehouse relocated. “It was a big move both professionally and personally, but we decided as a family that it was a great opportunity. We
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Lisa Finn, Rebates & Software Team Sophia began her career at CMS as a marketing intern whilst Manager, Kiltimagh. at University. After graduating Lisa started her career with she returned to CMS and CMS in 2005 as an account decided to join the sales team. manager. She initially started as sales “This role was the beginning support on major accounts. of my journey with CMS. I then This allowed her to become an progressed into sales effective account manager and helped her in understanding the management. With this role I became involved with the SAP fundamentals of managing integration eventually major VARS in the UK. This becoming one of the finance experience helped Sophia to take on new business accounts. managers. The various roles I have held within CMS have “An opportunity I was delighted to be given at such a young age really allowed me to learn how the business works across all and being mentored by such a areas. I am constantly great management team,” says learning and developing my Sophia. She is now the business development manager skill set each day. I enjoy being part of the buzz. It is exciting to for Barracuda for the UK and be taking part in the amazing Ireland. journey with CMS.” Sophia won the CMS sales league three years in a row and was offered a place on the CMS Sales Trip to Las Vegas. “CMS has given me the opportunity to grow as both a professional and an individual and has given me the support I’ve needed
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Technologies
HARDWARE
CONTINUED GROWTH IN BOTH COMPONENT AND SOLUTION SALES
CMS Distribution have been supplying storage hardware for more than two decades in the UK and Ireland with an experienced team that proactively identifies and pursues new technology trends to provide resellers with variety across a broad portfolio of interoperable products.
“As the demand for storage capacity is increasing, we are expecting a boost of interest for storage technologies.” Nick Preston
“As the demand for storage capacity is increasing at a rapid pace, we are expecting a boost of interest for storage technologies like SSD, NAS and all-flash arrays,” says Nick Preston, commercial director for CMS Distribution. CMS Distribution is ready to respond to the increasing demand, as the number one storage components distributor in the UK for SanDisk, Crucial,
Toshiba and Seagate for flash-based USB, SD, Micro SD, SSD and memory modules alongside internal and external disk-based storage. Always one step ahead of the competition and adding new vendors, CMS recently added NETGEAR, LaCie and Kaminario to the portfolio. These complement the existing offering that includes QNAP, Quantum and WD as well as
others. “We are proud that our strategic consistency has made us the number one distributor of sub £4,000 storage array solutions,” adds Nick Preston. The hardware team of 35 contains a vast wealth of industry expertise and knowledge in our core technologies – servers, direct and network attached storage (DAS/NAS), storage area networks (SAN) and backup products. The team is able to provide the best cost-effective solution and services for customers. The pre-sales support team at CMS work with resellers and their end-users to offer a unique service. CMS can supply customised solutions based on customer specific configurations and sizing requirements using fully compatible parts. The assembly team builds and tests all solutions prior to shipping. By fitting and configuring all parts CMS is able to offer a shorter turnaround time for shipment to the reseller or directly to the end-user. CMS Distribution builds and ships 22,000 solutions every year. The team also offers post sales first and second line support and services including: next business day disk swap out, extended warranty, onsite maintenance and installation services.
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Nimble Storage - Ireland Only
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Technologies
SOFTWARE
SECURITY TO DELIVER STRONG ORGANIC GROWTH The CMS software enterprise team of 30 is growing steadily year on year. Recently, a number of new vendors including AlienVault, AVG and Barracuda have been added to the existing portfolio.
“We believe that our recent focus on security will deliver strong organic growth.” Justin Griffiths
CMS Distribution has been distributing data and information management software for over 15 years and is the leading specialist distributor in the UK and Ireland within this space. Whether resellers are interested in a solution for virtualisation, cloud computing, app development, backup, disaster recovery, data deployment or even replication, the CMS team has a product available to suit the needs of both small and medium-sized businesses all the way up to enterprises. CMS Distribution has been a valued partner of Red Hat the world’s leading provider of open source - for over 20 years, providing both sales and marketing services. Justin Griffiths, enterprise director at CMS Distribution,
management to enhance their security positions. CMS Distribution will continue to sign more vendors as it diversifies its storage roots. Patrick Healy, Managing Director of Irish Operations said, “CMS acts as a strategic distributor in Ireland too for a number of key vendors and in some instances we are the sole software distributor in the marketplace, validating the commitment and service we give to both vendors and partners alike.” Justin Griffiths concluded, “We will continue to look for new ways to deliver great solutions and to support our customers as they explore new opportunities and technologies including automation, cloud and more intelligent demand generation.”
reveals that: “the software division now plays a significant role within the company. With continued success around storage, backup, network management and open source, we have seen our business portfolio expand to meet the needs of our customers. We believe that the recent focus around security will deliver strong organic growth over the coming years - working with vendors such as Barracuda, AlienVault and AVG.” CMS customers are continuing to see security as a priority as the market embraces mobility and cloud infrastructure. According to official statistics, by 2018, more than half of organisations will use security services firms that specialise in data protection, security risk management and security infrastructure Patrick Healy
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Symantec & Veritas - Ireland Only
Technologies
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CONSUMER
SUPPORTING OUR CUSTOMERS TO BE AHEAD OF THEIR COMPETITION
CMS Distribution’s consumer technology division specialises in memory, hard disk and solid state drives, peripherals, networking, smart home and related accessories.
“We are always one step ahead of the consumer technology trend wave.” Frinos Constantinou
For over two decades, CMS’ experienced account managers and support team have been building up extensive knowledge in the consumer channel. This is why the CMS consumer team is quick to tap into new markets and new product categories, offering
customers the best products as they become available. “Our main competitive differentiators are our flexibility and our drive to give the customers what they want and need to be ahead of their competition. We are able to quickly onboard vendors and to
generate brand awareness and interest. Product lifecycles are shorter than ever, so a quick to market route is crucial,” says Frinos Constantinou, CMS Distribution’s retail director. Adding new and exciting vendors to the existing portfolio of over 35, is an essential part of this service that our customers rely upon. Customers such as: Amazon, Argos, Dixons Carphone Warehouse, Spicers, TK Maxx and John Lewis benefit from CMS Distribution’s expertise in marketing, retail, and e-tail logistics. CMS is able to create sales-focused campaigns for products or entire businesses, generating leads and closing sales effectively. The Logistics and Integration Centre in Castleford delivers a smooth and secure service, whatever the requirements. CMS offers a range of additional retail services and support, tailored to consumer technology businesses of any size – whether independent or a national chain. These are the reasons why customers see the collaboration with CMS Distribution’s consumer division as a real competitive advantage.
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Jabra - Ireland Only
Services
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MARKETING
DIGITAL MARKETING EMBRACED TO ACHIEVE RECORD BREAKING RESULTS
With a full-service in-house marketing agency, CMS Distribution has the resources and know-how to successfully help our vendor and reseller partners grow their business.
“We have the understanding of the technologies we sell and the competitive landscape they sit within to deliver efficient campaigns.” Julia Radtke
Customer purchasing behaviour has changed dramatically and continues to evolve; using multiple devices to research products, solutions and services from a growing number of sources of information to compare and test, prior to making any purchasing decision. “CMS Distribution’s marketing team not only knows how to meet the challenges that marketers face, but also has the necessary understanding of the technologies we sell and the competitive landscape they sit within to deliver bespoke campaigns that meet our partners’ needs and align with their overall business plan,” says Julia Radtke, marketing director at CMS Distribution. The channel marketing services connect CMS
Distribution’s vendors with the right people at our customers. We engage with our reseller partners regularly through email communications, web articles, video content, case studies, online and print advertising, social media, webinars and physical events. “We have adopted a full range of modern digital marketing techniques, from SEO optimised web content, social media and PPC to video production and targeted email campaigns,” says Julia Radtke. Using effective messaging combined with the most appropriate marketing channels and activities, the team is generating qualified leads for our partners. “Through our channel marketing, customers gain access to relevant information about new trends and market
opportunities, product information and vendor partner programmes. We provide the tools that help our customers gain a competitive advantage,” adds Julia Radtke. In 2015 the team successfully launched 17 new vendors and created thousands of leads that have generated business for our vendors and resellers. Our end-user marketing services have connected our resellers and vendors with end-users, creating a regular flow of new business opportunities. Last year, the team organised no less than 7 events that were attended by 475 end-users, including the largest partner led end user event in EMEA with 119 attendees for one of our software vendors. The team was recognised last year as ‘Marketing Team of the Year‘ at the Storage Awards 2015. Julia Radtke concludes: “We are incredibly proud of the award as it recognises the skills applied and the hard work invested by our marketing team on services provided to help our customers grow their business.”
Services
02 01 STRATEGY & PLANNING We create bespoke marketing plans that align with the overall business plan for both new and existing vendors.
EFFECTIVE TARGETED MESSAGES Our experienced creative team is able to create targeted online, print and video messages to meet the needs of our partners.
03 LEAD GENERATION We provide highly effective strategies to generate qualified leads for your business. We offer the following; > Content > Email > Search Engine Optimisation (SEO)
05 ANALYTICS & FULL ROI REPORTING We always assess the success of our marketing campaigns by analysing the metrics and we never stop looking to improve our marketing services because we are driven by results.
CHANNEL & END-USER MARKETING SERVICES
> Workshops, Large Scale Events, Tradeshows and Webinars > Paid Search (PPC) > Social Media > Online and Print Advertising > PR
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> Video > Incentives
LEAD TRACKING & MANAGEMENT Leads are never lost or forgotten. Leads are nurtured and distributed at the right time, generating new business.
Winner 17 Storage Marketing Team of 2015
Vendors Launched in 2015
475
Attendees at 7 End-User Events
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Services
MARKETING
CMS DISTRIBUTION’S PARTNER FORUM HAS SET THE BENCHMARK FOR IT INDUSTRY EVENTS
Annual channel events in the UK & Ireland provide both the environment and structure for vendor and reseller partners to discuss meaningful business opportunities.
KEY FIGURES: UK PARTNER FORUM 2015
10
Vendors
30
Resellers
100% Attendance rate
123
Meetings in one day
Every year the CMS Distribution Partner Forum events organised in the UK and Ireland are bringing an exclusive list of vendors together with our most valued customers. CMS Distribution presents its strategy for the coming year, while each of our vendors has the chance to present its own roadmap and the market opportunities. Mark Walker, channel manager for UK and Ireland at Kaminario said, “We are a new vendor in the UK and it is very important to spread our message to our partner community, so this opportunity to be part of the Partner Forum is a great way to get the message out to potential resellers to help us build a channel.” The event includes high level pitches and structured networking sessions. This allows resellers to have one-to-one time with each vendor to understand each others’ businesses, consider potential opportunities and how the products, solutions and services fit within their portfolio. Last year CMS Distribution organised its largest UK Partner Forum, bringing together ten hardware and software vendors
and over 30 resellers. In the afternoon of the event, over 120 one-to-one meetings took place. “The CMS Partner Forum presented a great opportunity to engage with UK partners through a well organised networking session. For AlienVault it provided a great opportunity to talk through our channel strategy with the right people. The feedback we received from the partners on the day was incredible and we have already moved forward with further discussions with several of them. We will certainly be attending the CMS Partner Forum in 2016,” said Jordan Ryan, channel manager EMEA at AlienVault. “What is really pleasing in terms of the feedback from our customers is that they see these events as an industry standard. They have really set the benchmark and tone for events throughout the IT industry. Our partners have made it clear already that they are keen on coming to the next one,” says Justin Griffiths, enterprise director at CMS Distribution. “The 2015 CMS Distribution UK Partner Forum was a well organised event that ensured that our time invested was optimised as we were able to
Services
gain visibility of new vendors and technology. Having worked with CMS Distribution for many years it was encouraging to see that they are striving to retain their position as a leading storage distributor with emerging brands and products,� says John Greenwood, sales director of storage and virtualisation solutions at NCE Computer Group.
OVERVIEW OF CMS PARTNER FORUMS:
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Partner Forums in the UK
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Partner Forums in Ireland
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Services
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OPERATIONS
SMOOTH, SEAMLESS AND TAILORED DELIVERY We have invested in advanced systems to set us up for future growth.
2015 KEY FIGURES 8 million units shipped
120,000 orders shipped 22,000 NAS solutions built
Our new 44,000 sq. ft logistics and integration centre, located in Castleford, West Yorkhire, has advanced systems to deliver full service and total support to our vendors and resellers. Over 120,000 orders and 8 million hardware units were shipped in 2015 with a next-day delivery rate of 98.9%. The centralised operations and high stock holding of ÂŁ10m ensure optimised availability and fast delivery. Your business has access to the advanced logistics and MRP forecasting that you need to support your customers. CMS offers full electronic trading and current feeds for stock and prices
through EDI and is able to take solutions from order to build in one hour. Orders are shipped from stock with a range of customisation and configuration options for direct deliveries – including plain-label packaging. Last year we assembled and delivered 22,000 solutions and that is just the beginning. We ensure that every delivery is smooth, seamless and tailored to our customers requirements.
Financials
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FINANCIALS
EXCITING FINANCIAL OUTLOOK FOR 2016 Expecting a year of continued progress supported by important investments.
2015 FINANCIAL HIGHLIGHTS
“Our Balance Sheet strength allows us to drive further growth through investments and peer acquisitions.”
£178m revenue EBITDA growth of 25% over 2014
Tom Burke
CMS Distribution is well positioned for growth in 2016 and beyond after recording a £178m revenue and a 25% year-on-year EBITDA growth in 2015 fiscal year. “After reaching revenues of £178m in 2015, the Group’s five year compound annual growth rate (CAGR) is situated now at over 16%. A combination of prudent cost management, continuous improvement initiatives, system development and strong working capital management have driven our operating margin and cash levels to new highs,” says Tom Burke, CFO at CMS Distribution. CMS Distribution has made a healthy revenue progress in 2015, following a record turnover increase of 30% to £174m in 2015. Additionally, EBITDA growth was 25% over 2014 to £5.5m, after an outstanding increase of 53% in 2014. In fact, all divisions showed an increase in
Cash balances increased by £4.2m 6 YEAR REVENUE TREND
200 180
£173.6m
£178.2m
2014
2015
160 140 120
£133.4m
2012
2013
£97.9m
100 80
£133.2m
£77.3m
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£4.25m 4 £3.23m 3 2 1 0
£1.21m
2010
£2.21m
£2.26m
2012
2013
£1.58m
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2014
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Financials
EBITDA. The Return on Capital Employed (ROCE) has steadily grown since 2013, rising to 22.2% for the year under review. “With an EBITDA margin of over 3% and a closing cash position of almost £6m, the Group is well positioned for growth in 2016 and beyond. Our Balance Sheet strength allows us to drive further growth through investments and peer acquisitions,” adds Tom Burke. CMS’ strong position is also shown by the three year profit before tax trend, with an average of 20-25% increase year-on-year reaching £4.26m in 2015.
Looking Ahead CMS Distribution’s outlook for 2016 is positive, with a solid start in the first quarter. The group has continued to streamline the Management Information Systems with SAP as the group-wide ERP. This has given a very solid platform for growth and is considered a key tool within the business. Investments in other core systems are also taking place in order to drive better customer service and efficiency. All of these investments enable CMS to scale efficiently. “We are confident that a solid return on these investments is being achieved and will continue to be achieved in the future,” comments Tom Burke. CMS Distribution is also embedding a stronger cost-conscious culture at an individual level through the
30%
6 YEAR RETURN ON CAPITAL EMPLOYED TREND
25%
22.5% 20.4%
20% 15%
20.5% 17.3%
16.0% 13.8%
10% 5%
2010
2012
2011
2013
2014
4 YEAR EMPLOYEE HEAD COUNT TREND 215
2015
215
210 205
203
200 195 191 190 185 180
183
2013
2014
2015
2016 (As of April 2016)
business, including personal objectives on efficiency targets. “We have continued to strengthen both our Board and our Management Team, with a combination of internal promotions and selected external hires. We now have approximately 215 staff across four locations and as our key asset, we continue to invest in training and development, both product specific and general management training. At the same time, we have added a number of key vendors
and customers to our portfolio in the past year and our pipeline of new vendors remains strong. We believe this is the key to providing a solid platform for future growth and we are confident of achieving another healthy return from trading activities in 2016,” adds Tom Burke.
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CORPORATE SOCIAL RESPONSIBILITY
CMS TEAM IN THE COMMUNITY
Our employees are actively involved in raising money for charity and volunteering their time to good causes. Their efforts have raised funds, which
CMS Distribution has matched. This is our way of supporting the charities and causes that matter most to our employees. In 2015, we have collectively
raised £15,000 for charitable causes. Here are just some of the amazing initiatives that have made us proud:
®
Family Fun-days for The Royal Brompton Steve Yeoland, our Red Hat product manager held a family fun-day with lots of children’s activities to raise funds for The Royal Brompton, the largest cardiothoracic centre in the UK. Steve first held this event two years ago and raised over £3,000. At the 2015 event over 250 people turned up raising just over £1,300 on the day.
100 Miles Ride for the Epping Forest Field Centre Martin Fairman, our senior technical pre-sales consultant, cycled the Prudential Ride (100 miles) for the Associates of Epping Forest Field Centre, which helps local children with special needs to enjoy the forest facilities.
Ice Cream Road Trip for the Irish Cancer Society CMS Distribution and our partner arcserve, the leading provider of data protection and recovery software solutions, went on a tour of Ireland with an ice cream van, giving out free ice cream to CMS partners in exchange for a little donation to the Irish Cancer Society. We met with over 160 people and raised over €2,000 for a good cause.
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Pretty Muddy Race for Cancer Research
Supporting Junior Entrepreneurs
CMS Ireland Teams-up with Special Olympics
Team F.A.T. (Fabulously Athletic Tigers) made up of Katy Walters, Rachel Cluderay and Laura Garfitt completed the 5K Pretty Muddy Race for Life at Temple Newsam. In total, the team raised £270 for Cancer Research UK.
CMS Distribution sponsors the Junior Entrepreneur Program in London and County Mayo: a 10-16 week entrepreneurial education programme for primary school pupils throughout the UK and Ireland. This innovative programme encourages primary school pupils to develop entrepreneurial skills at a time in their development when they are full of imagination and open to new possibilities. The programme helps participating pupils to develop a number of skills including literacy, writing, presentation, drawing, technology, research skills, numeracy, financial, consumer awareness, storytelling, listening skills, creative thinking, problem solving, team building and collaboration. As a part of the programme each school creates and implements a business idea, with profits being invested back into the school. In 2015, over 10,000 pupils participated in the programme and played their part in creating their very own classroom enterprises.
CMS Ireland have teamed-up with Special Olympics Ireland, to raise funds over 12 months. The first event was the Western People West of Ireland Women’s Mini Marathon. Karen, Angela, Niamh and Natalie, from our Irish office, all took part in the event.
10k Run for Breast Cancer Campaign Rebecca Brookes, our QA stock manager, took part in the Running Awards Trail Race Gold, a 10k run through mud, water, obstacles and slides. She managed to complete the run and raise a total of £549 for Breast Cancer Campaign.
One Skydive for St Michael’s Hospice Katy Walters, our sales support took part in a tandem Skydive, which raised a total of £1,050 for St. Michael’s Hospice, a holistic care and support centre for those affected by progressive life-limiting illness or bereavement.
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www.cmsdistribution.com London
Harrogate
Castleford
Ireland
15 Worship Street, Shoreditch, London, EC2A 2DT
Hornbeam Square West, Hornbeam Business Park, Harrogate, HG2 8PA
Unit 1, Speedwell Road, Castleford, WF10 5PY
Bohola Road, Kiltimagh, Co Mayo, F12 TD82
Telephone Numbers Software UK: +44 (0) 20 8805 1000 Hardware UK: +44 (0) 1423 70 4700 Consumer UK: +44 (0) 20 8962 2500 Ireland: +353 (0) 94 937 4000
Customer Services UK: +44 (0) 20 8962 2442 Customer Services Ireland: +353 (0) 94 937 4061 General Enquiries: +44 (0) 20 8960 6000