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1. Westcoast

Oxygen staff by Oxygen staff
13 November 2024
in Must-Know Distributors 2024
Home Must-Know Distributors 2024
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Specialism: Broadliner

Key vendors: Apple, print consumables, HPI, HPE, Lenovo, Microsoft, Dell, Meta, Poly, Samsung, ASUS, Acer

Revenue: £2.81bn (-8%)

Headcount: 1,000

The UK’s largest distributor has had an action-packed 2024, acquiring £100m-revenue rival Spire in April before itself agreeing to sell up to mainland European peer ALSO in July.

Based on its calendar 2023 numbers, Westcoast’s annual sales remain over £100m larger than those of TD Synnex in the UK (despite dropping 8%).

Citing figures from Context in its annual accounts, the Theale-based outfit acknowledged that its share of the UK&I distribution market fell from 22.3% to 21.9% during the period.

At a group level, Westcoast’s revenues hiked from £3.6bn to £4.2bn, however, as 2022 German acquisition Komsa bolstered the top line.

Group operating profits rose even more rapidly, pogoing from £46m to £63m, as it increased its sales of higher-margin products and services such as cloud subscriptions, networking, storage and AV displays.

Switzerland-based ALSO’s acquisition of Westcoast will create a €15bn-sales juggernaut. The deal (which does not include Komsa) came just 18 months after ALSO launched a UK cloud business (which we have not included ALSO Cloud UK in this rundown due to a lack of intel on its size).

“If I could wave a magic wand, I would use it to tackle Scope 3 emissions”

Phil Bell, Westcoast
Phil Bell

Quickfire Q&A with Chief Revenue Officer Phil Bell

Which product, service or vendor has stood out for you in 2024?

It has to be Microsoft with Copilot, the move to Windows 11, and CSP – because they are driving channel wide opportunities.

If you could change one thing about your business at the stroke of a wand, what would it be? 

To accelerate our sustainability goals. We have good control of our Scope 1 and 2 emissions, but if I could wave a magic wand, I would use it to tackle those Scope 3 emissions that are currently outside of our control.

When will the UK distribution market return to growth? 

Imminently! There are so many opportunities for the channel to capitalise on – software, cybersecurity, services, and of course, AI – to name a few!

Name one area of your business where you are expecting to add staff in 2025. 

Retail and services.

At its Channel Forums EMEA in October, Canalys characterised AWS Marketplace as one of the world’s largest distributors, owing to its growing third-party software business. On balance, do you agree?

Yes! It’s a big distributor, and with the value that the channel adds, we’re confident that software sales will continue to grow through the channel in 2025. 

If you could be a fly on the wall for a day at another distributor, which would you choose? 

None! If you’d asked at the start of the year I’d have said the UK’s largest IT components distributor, Spire Technology Ltd. But we happily joined forces when we acquired them in April. We’re busy focusing firmly on our people and our partners – to support them to win!

See who made the wider Oxygen 50 Must-Know IT Distributors 2024 here.

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