Over 2.8 billion PLN of turnover was generated in the first half of the fiscal year 2012/2013 by the AB Group. This marks a growth by 20% when compared with the corresponding period of the preceding year.

The AB Group, one of the largest IT distributors in Central and Eastern Europe, reported 2.852 billion PLN of revenue after two quarters of the fiscal year 2012/13. For comparison, the first half of 2012/13 resulted in sales amounting to 2.373 billion PLN. This means that over the last twelve months the sales of the company
have risen by over 20%. The quarterly L4L growth rate was even higher and amounted to 21%. In QII 2012/13, the Wrocław-based group generated 1.729 billion PLN, and 1.428 billion PLN in QII 2011/12. Net profit after two quarters of the current fiscal year amounted to 26 million PLN.

We are regularly increasing our market share and strengthening our position as the undisputed leader
in Poland and the Czech Republic. Our efforts have been recognised by the market, resellers and vendors. This can be easily confirmed by the numerous awards we have received, including the prestigious title of Central & Eastern Europe Distributor of the Year 2013. We are the main beneficiaries of the rapid development of the IT market in the region, says Mr Andrzej Przybyło, President of the Board at AB S.A. [JSC].

According to the report provided by the company Context, both AB and AT Computers occupy leading positions in their local markets. Additionally, the AB Group came eleven in the ranking of Europe’s largest IT distributors in terms of sales revenue.

The increase in sales is a result of our ever growing product portfolio and a wide range of additional services. Simultaneously, we are still gaining new loyal customers: in 2012, their number increased by 16% when compared with the previous year, adds President Przybyło.

The board stresses that the key to increasing the level of sales is working in a close-knit partnership with all the major vendors in the market. We sign several dozen distribution agreements with major players in the market every year, which allows us to offer the most cutting-edge solutions available in the market of IT, explains President Przybyło.

It should be noted that a low-cost company management system has been implemented and is currently being optimised. For years, the relation of Selling, General and Administrative Expenses to revenue has remained at the lowest level
in the industry. At the end of the reporting quarter, the SGA rate fell by 23% from 2.82 to 2.16 when compared with the same period last year.

In the same period, the stand-alone cash conversion cycle was reduced from 28 to 22 days, which resulted in a measurable reduction in the level of interest financing of the company. Our priority for the next few quarters is to continue working on the optimisation of internal processes, which allows us to reduce costs to the lowest possible levels and generate sustainable profit, says Grzegorz Ochędzan, CFO at AB S.A. [JSC].

The natural target for the Group is to expand into new product segments
and geographical areas. We will continue expanding the range of additional services for our partners
and contractors, adding high-margin products to our offer and seeking new and unexplored market areas, says President Przybyło.