The EVO Group of Companies has posted strong first quarter results and has now appointed Clearwater International as advisor to review its strategic options. Highlights include year-on-year sales growth of +10% in Banner and +4% in VOW Ireland with underlying sales of traditional office products across the group growing by +2%, significantly outperforming current market trends.
The VOW UK Wholesale business continues to win market share from its key competitors and deliver a strong performance in growth categories such as facilities supplies whilst balancing volume and margin in the commoditised ink and toner supplies market.
In headline terms, the group’s adjusted EBITDA is up 11% compared to the same quarter in 2018. The strong sales results mentioned above coupled with central cost control, improvements in warehouse efficiency and the benefits of the last year’s investment in technology in Truline have helped the group combat headwinds caused by Brexit.
The group has continued to deliver high service levels at good value to all its customers whilst at the same time improving underlying business performance.
“Our strategy of allowing our trading companies to focus on their customer and supplier’s requirements combined with a focus on targeted sales growth, productivity, cost saving initiatives and investment is helping to drive the group forward,” said CEO Steve Haworth.
“EVO sits firmly at the centre of the business supplies market in the UK and Ireland and is now ready to take advantage of its unique position to shape its future and that of the wider market. To this end, we have appointed Clearwater International as financial advisor to assess all strategic options for the group. Clearwater’s role includes a broad assessment of alternative strategies, which could include further bolt-on acquisitions to add to the five already made in the last 18 months, disposals and/or a strategic combination with international trade groups to facilitate further growth and strategic investment.
“The business supplies sector is poised to enter an exciting new phase of consolidation and EVO is ideally placed to capitalise on opportunities as they arise,” he added.
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