Extensive changes at SharpText
IT distributor SharpText has undergone extensive restructuring after experiencing a significant drop in turnover. Newly appointed managing director John Dunne said that the company has shifted its strategy after revenues dropped to €127 million in the year ending March 31, 2008, down from €136 million a year previously.
The DCC-owned company also experienced a fall in revenues last year, Dunne said, but he declined to specify the amount until accounts were filed.
Dunne, who took up the reins in April after previously serving as finance director, said that the drop-off in revenues was chiefly caused by the economic slowdown. ‘‘There is less foreign direct investment and fewer new product rollouts at the moment. Big companies are now trying to do less with more and have started sweating their assets,” he said.
SharpText was now moving from being a pure distribution business model, or a ‘‘box shifter’’ as Dunne put to it, to broaden its offering by becoming a solutions provider as well.
‘‘Customers are looking for quality solutions at the right price and we are trying to ensure that we work closely with them,” he explained.
That means that SharpText has had to increase its in-house technical capabilities, adding staff with the expertise to advise on and implement solutions. The company has formed new teams specialising in areas such as virtualisation, unified communications, online solutions, and security.
Despite the new personnel, SharpText has also experienced a significant fall in overall headcount. Dunne said that staff numbers now stand at 50, down from just over 80 a year ago. ‘‘We feel that we now have the right number of people to move forward,” Dunne said.
While turnover fell during its last financial year, cost of sales also dropped, according to the company’s most recent accounts, down from€125million to €117 million in the year ending March 31 2008.Administrative expenses were also trimmed, from €5.1 million to €4.7million. As a result, the company’s net profit dipped from €2million to €1.3million.
SharpText was founded by Pat Garvey and the late Eddie Kerr in 1980 and acquired British office equipment distributor Micro-P in 1989. Kerr sold his shareholding to DCC in 1990, while Garvey remained on board until 1998 before also selling up to DCC.
