Distribution of IT Products Analysis
A total universe of 1,263 companies operating in the IT and software distribution (NACE 4651) submitted their financial statements on the activity during 2013. According to the financial statements released by the Ministry of Finance, these companies generated a total turnover of the 5.2 BRON, down by 5% compares to previous year.
Since 2009, the distributors of IT products registered a constant decrease of the income in parallel with a positive financial performance. Thus, the average revenue per company registered in 2013 was 22% lower than the one recorded before the financial crisis, ie 2008, but in the same time the net result of 2.4% for 2013 at the sectorial level is the maximum registered in the last 10 years. After applying stress scenarios, Coface calculations indicate that the next years must bring solutions to increase the revenue. Otherwise, the sector risks to register an extension of payment terms to suppliers, which fuels the risk of insolvency.
The incomes contraction and competition above average registered within the sector impacted the evolution of the companies during 2013. Sectorial risk analysis reveals that 15% of the analyzed companies have ceased their activity, with an average of 10 years activity, an aggregate turnover of 313 MRON, while the total debts were 336 MRON.
During 2013, Coface individually analyzed a sample of 210 companies from its portfolio that are operating in the analyzed sector. Even if from a numerical point of view, the analyzed sample seems small (with a numerical weigh of only 17%); these companies are the most representative, because they generate no less than 85% of the total turnover registered within the entire sector. Fragile liquidity situation is also confirmed in this representative sample, given that about 41% of the companies make payments very slowly, or do not respect their contracts and only 26% make payments without delay.
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