Sellers' game

CRN profiled itX in an issue of the magazine last year. Here we discovered the company's history of mergers and how it survived the financial crisis. Avnet recently offered to acquired itX.

Engineering qualifications kicked off his career in IT but the sales and management training Laurie Sellers, chief executive officer for itX, gained early in his career was the start of something a little less technical.

His employer at the time - back in England some three decades ago - encouraged Sellers "to get into management" and subsequently sponsored him to complete a diploma in management studies.

"I took the opportunity and found that I enjoyed it and I was successful at it. Frankly, I was one of those dangerous sales guys who actually knew how a computer works," he says. "Not sure I do anymore . . ."

Sellers joined itX - or GEC Alsthom IT as it was in 1993 - and took over the chief executive reins in 1998. Ten years on, Sellers can't get enough of it.

"Distribution is sales and marketing as opposed to just selling," he explains, and "the marketing certainly is something that appeals strongly to me."

But, he admits, in the CEO position there's a lot more to it. "As I floated towards the top, I also had to be astute in people management and financial management."

This year, in any industry, not much is more important than financial management. ItX's financial philosophy is especially adamant on the point:

"It's just as important to manage costs in the good times as it is in the bad". So, today, with the world in recession, the company happily carries no external debt and keeps a strong eye on cash flow.

"In common with most well-managed distributors, we're financially very astute and constantly keep a careful eye on credit management particularly in these tough times," says Sellers.

"It's something engrained in our business. Cash is so important."

Nine months into the company's financial year itX has yet to feel a significant downturn.

"It's actually been a pretty good year so far," says Sellers. As the distributor enters its fourth and final quarter, its CEO is "cautiously optimistic" about the full year results.

In fact, the company is close to its initial high growth target set when its budget was finalised just two months before world markets crashed.

"The distribution business is up significantly on last year ('07-08); we've had 30 percent growth in our revenue," Sellers says.

"Inevitably some of the bigger deals got put on hold particularly towards the end of the last calendar year and I guess that had an impact on what otherwise would have been a spectacular year. Generally we are going very well in these conditions."

Enough to require more staff and floor space, he adds.

But itX hasn't escaped recessionary pressures and like so many businesses it too decided to tighten spending. Towards the end of last year the distributor held off recruiting until after the Christmas break. "We decided to wait and see what the market is going to do," Sellers explains.

As well, other discretionary costs such as travel are being managed very carefully. For the next financial year Sellers says itX will make adjustments as it sees necessary in order to sustain its growth plans.

"We've been focused on achieving the current year plan and we'll soon be finalising the plans for next year."

For Sellers, the forecast will unequivocally include expansion, regardless of the economy.

"I believe growth is still a sensible approach to take, you can't stand still, so if you're not growing you must be shrinking - and I'd rather get bigger than smaller," he says.

Whether it's through organic growth or acquisitions. Sellers hasn't ruled out acquisitions and explains why by alluding to the successes of itX's $6 million acquisition of Briell Marketing last year, a specialist printing and media distributor.

"This is a very specialised area and to some degree has been recession-proof, but more importantly it leads us to a new area, a new market."