Global VAST strategy begins to deliver 60% year-on-year growth at Exclusive Group
LONDON, UK – September 9th, 2016 – Exclusive Group, the value-added services and technologies (VAST) group, today announced its latest set of financial results showing 60% year-on-year growth for the first six months of 2016, with total revenues of 575m€. The performance reflects the successful execution of the Group’s VAST strategy, strong returns on core vendor business achieved in all global territories, and the swift, effective integration of Exclusive Group’s Asia operations following the acquisition of regional cybersecurity VAD Transition Systems earlier this year. The half-year results are comparable to total income for the whole of 2014, keeping Exclusive Group on target to continue its legacy of doubling revenue every two years.
“The intention to have a more blended business through our VAST strategy is paying dividends, with each of our ancillary services businesses contributing to strong growth,” said Olivier Breittmayer, CEO of Exclusive Group. “These results also show how well-balanced the Group is globally, able to absorb fluctuations in regional geographies and economies with little impact on momentum. It is particularly pleasing to see our rapidly expanding BigTec business in the software-defined web-scale infrastructure marketplace returning triple-digit growth. This, allied to our strong cybersecurity-focused Exclusive Networks operations and a renewed focus on developing and expanding premium-based services, is having a positive impact on the overall integrated business.”
• On a like-for-like basis, not including Asia, year-on-year growth was over 25% (464m€ H1 2016 revenue). The Asia integration is now complete and generating significant growth.
• There was substantial growth across core vendors, all outperforming their relative market sector performance. Professional services and support also saw increased growth.
• Datacentre transformation VAD, BigTec, continues to expand geographically, with the Pacific region the latest to open. As a whole, the BigTec business continues to return triple-digit growth.
• The integration and expansion of services businesses Exclusive Capital and ITEC Exclusive Global Services is positively impacting revenues through enlarged sales opportunities.
• Revenues were strong in Southern Europe (Spain, Portugal and Italy), with year-on-year growth of almost 40% making it akin to ‘pre-austerity’ macroeconomic conditions. Similarly, in France and Africa where improving market conditions helped the region return growth in excess of 30% growth.
• Over 90% year-on-year growth was achieved in the Nordic region, with Sweden and Finland the pick of the quartet. Key factors included a number of very large deals and the faultless execution of innovative go-to-market strategies around core vendors.
“We are more motivated than ever to extend our value-added model further, resisting the pressure to dilute our specialisms or tone-down our disruptive nature, and instead investing in our future with more innovative services and insight to benefit our vendor and reseller partners worldwide,” said Exclusive Group COO, Barrie Desmond. “These results are a direct consequence of our unique approach and mind-set – L’Esprit Exclusive – that we must continue to protect in spite of our expanding size. At its heart is a commitment to value – true value – and the execution of local knowledge and decision-making on a global scale. These strong six months have put us ahead of our plan and budget, but more hard work is needed to achieve our annual target and TWENTY-20 vision of doubling revenue every two years until the year 2020.”